Full text of Federal Reserve Bulletin : March 1925
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FEDERAL RESERVE BULLETIN MARCH, 1925 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Gold Exports and the Reserves of Foreign Banks Business Conditions in the United States The Bank of France in 1924 WASHINGTON GOVERNMENT PRINTING OFFICE 1925 FEDERAL RESERVE BOARD Ex officio members: D. R. CRISSINGER, Governor. EDMUND PLATT, Vice Governor. A. W. MELLON, Secretary of the Treasury, Chairman. J. W. MCINTOSH, Comptroller of the Currency. ADOLPH C. CHARLES S. GEORGE R. EDWARD H. MILLER. HAMLIN. JAMES. CUNNINGHAM. WALTER L. EDDY, Secretary. WALTER WYATT, General Counsel. J. C. NOELL, Assistant Secretary. W. M. IMLAY, Fiscal Agent. WALTER W. STEWART, Director, Division of Research and Statistics. E. A. GOLDENWEISER, Assistant Director, Division of Research and Statistics, E. L. SMEAD, Chief, Division of Bank Operations. J. F. HERSON, Chieft Division of Examination, and Chief Federal Reserve Examiner. FEDERAL ADVISORY COUNCIL District No. District No. District No. District No. District No. District No. District No. District No. District No. District No. District No. District No. II 1 (BOSTON) __ CHAS. A. MORSS. 2 ( N E W YORK) PAUL M. WARBURG, President. 3 (PHILADELPHIA) L. L. R U E . 4 (CLEVELAND) GEORGE A. COULTON. 5 (RICHMOND) JOHN M. MILLER, Jr. 6 (ATLANTA) OSCAR WELLS. 7 (CHICAGO) FRANK O. WETMORE. 8 (ST. LOUIS) BRECKINRIDGE JONES. 9 (MINNEAPOLIS) G. H. PRINCE. 10 (KANSAS CITY) E. F. SWINNEY, Vice President 11 (DALLAS) W. M. MCGREGOR. 12 (SAN FRANCISCO) HENRY S. MCKEE. OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Chairman Deputy governor Governor Boston New York.. Frederic H. Curtiss. PierreJay W. P. G.Harding.. Benj. Strong W. W. Paddock J. H. Case L. F. Sailer G. L. Harrison E. R. Kenzel PhiladelphiaCleveland Richmond., R. L. Austin D.C.Wills Wm. W. Hoxton. Oscar Newton Wm. A. Heaths- Geo. W. Norris__ E. R. Fancher... Wm. H. Hutt M. J. Fleming Frank J.Zurlinden.. C. A. Peple R. H. Broaddus J. L. Campbell Creed Taylor. _ C. R. McKay John H. Blair Atlanta Chicago George J. Seay~_ M. B. Wellborn.. J. B. McDougal.. St. Louis Minneapolis.. Wm. McC. Martin. John R. Mitchell. . . D. C. R. A. Young Kansas City.. Dallas , M. L. McClure. Lynn P. Talley. John Perrin W. J. Bailey B. A. McKinney.. J. U. Calkins..... San Francisco. 1 Cashier W. Willett. L. H. Hendricks.i A. W. GilbarU J. W. Jones.1 1 G. E. Chapin. Ray M. Gidney. * L. R. Rounds.1 W. A. Dyer. J. C. Nevin. Geo. H. Keesee. John S. Walden, jr.1 M. W. Bell. W. C. Bachman.i K. C. Childs.1 J. H. Dillard.i D. A. Jones.1 O. J. Netterstrom.i 1 Clarke Washburne. J. W. White. Gray Warren. Frank C. Dunlop.1 0. M. Attebery W. B Geery B. V. Moore Harry Yaeger * C. A. Worthington R. R. Gilbert Val. J. Grand ! Wm. A. Day Ira Clerk L. C. Pontious.- J. W. Helm. R. B. Coleman. I W. N. Ambrose. * Assistant deputy governor. Controller. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Bank of— New York: Buffalo branch Cleveland: Cincinnati branch Pittsburgh branch Richmond: Baltimore branch... Atlanta: New Orleans branch Jacksonville branch Birmingham Branch Nashville branch Chicago: Detroit branch St. Louis: Louisville branch Memphis branch Little Rock branch Managing director W. W. Schneckenburger. L. W. Manning. Geo. DeCamp. A. H. Dudley. Marcus Walker. Geo. R. DeSaussure. A. E. Walker. J. B. Fort, jr. W. R. Cation. W. P. Kincheloe. V. S. Fuqua. A. F. Bailey. Federal Reserve Bank of— Minneapolis: Helena branch Kansas Citv: Omaha branch Denver branch Oklahoma City branch._ Dallas: El Paso branch. 1 Houston branch San Francisco: Los Angeles branch Portland branch Salt Lake City branch Seattle branch.. Spokane branch Managing director R. E. Towle. L. H. Earhart. J. E. Olson. C. E. Daniel. D. P. Reordan. Fred Harris. C. J. Shepherd. Frederick Greenwood. R. B. Motherwell. C. R. Shaw. W. L. Partner. SUBSCRIPTION PRICE OF BULLETIN THE FEDEBAL 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 contains, in addition to the regular official announcements, the national review of business conditions, detailed analyses of business conditions, research studies, reviews of foreign banking, and complete statistics showing the condition of Federal reserve banks and member banks. The BULLETIN will be sent to all member banks without charge. To others the subscription price, which covers the cost of paper and printing, is $2. Single copies will be sold at 20 cents. in TABLE OF CONTENTS The month: Review of the month—Changes in the banking situation Business conditions in the United States Special articles: South Africa and the gold standard Changes in membership in the Federal reserve system, 1919-24 Bankers'acceptances, 1923-24 Official: Law department— State laws relating to branch bankingState banks admitted to system Fiduciary powers granted to national banks Charters issued to national banks Business statistics for the United States: Industrial activity Commodity movements Wholesale and retail trade Foreign banking and business conditions: Continental banks in 1924 International price comparisons Financial statistics for principal foreign countries , Foreign trade of principal countries Industrial statistics for foreign countries Price movements in principal countries— Federal Reserve Board wholesale price indexes Wholesale prices in principal countries Retail prices and cost of living in principal countries Banking and financial statistics: Federal reserve banks— Condition of Federal reserve banks Federal reserve note account Holdings of earning assets Discount and open-market operations of Federal reserve banks Gold settlement fund Discount rates of Federal reserve banks Member banks— Condition of reporting member banks in leading cities Bankers' balances at reporting member banks in Federal reserve bank cities Deposits of all member banks All member banks—Abstract of condition reports on December 31,1924 Bank debits Money rates in principal cities Money in circulation Gold and silver imports and exports Foreign exchange rates and index IV Page 147 151 172 218 180 182 187 188 188 189 192 193 195 195 197 200 201 202 203 204 . 205 209 210 211 226 225 212 213 214 215 224 227 225 228 229 FEDERAL RESERVE BULLETIN VOL. 11 MARCH, 1925 REVIEW OF THE MONTH Factors influencing the use of reserve bank credit in January and February were chiefly the seasonal return flow of curInfluence of rency from circulation and the gold exports. export demand for gold. The decline in earning assets which usually occurs in the early part of the year has lasted a shorter time and has been less marked in 1925 than in 1924. A year ago, in addition to the inflow of currency from circulation, there were net gold imports of $80,000,000 during the first two months, both of which decreased the demand for reserve bank credit, while in 1925 net gold exports of about $90,000,000 in January and February tended to offset the influence on the reserve banks of the seasonal decrease in the demand for currency, with the consequence that liquidation came to a close earlier this year. In fact, after the middle of January there was a considerable growth in the demand for reserve bank credit. Extent of liquidation at the Federal reserve banks during the month following the peak of currency demand in December and the subsequent increase . in reserve bank credit are shown in the table. The decrease of $386,000,000 in total earning assets between December 24 and January 21 was the outcome of a reduction of $115,000,000 in holdings of United States securities and of a seasonal decline of $84,000,000 in acceptances and of $193,000,000 in discounts for member banks. During the five weeks ending February 25 the increase in earning assets reflected a growth in discounts, partly offset by some further decline in the holdings of securities bought in the open market. The growth of No. 3 $231,000,000 in the volume of discounts carried them to a higher point than at the December peak, and to a level higher than at any time since the spring of 1924. This upward turn in discounts, which is in contrast with the decline during the corresponding period of last year, reflects chiefly the increased borrowing by member banks for the purpose of maintaining their reserve balances at a time when the reserve banks were selling United States securities in the open market and when there was a demand upon member banks for gold for export. Sales of United States securities by the reserve banks reduced their holdings to $365,000,000 on February 25, compared with $538,000,000 two months earlier. While the larger part of the reduction in these holdings, as shown in the table, occurred at a time when there was a decreasing demand for reserve bank credit as reflected in decreases in both discounts and acceptances, further sales of securities by the reserve banks in the latter part of January and in^February were a factor in increasing borrowings of member banks. The largest increase in discounts was at the Federal Keserve Bank of New York, with the result that at the end of February borrowings by member banks in that district represented a considerably larger proportion of the total for the system than at the opening of the year and were in larger volume than at any time in the past year and a half. Increased borrowings at the reserve banks were also occasioned by the export demand for gold, first felt at member banks which obtained the gold by drawing upon their balances at the reserve banks, and then replenished these balances by increasing their discounts. 147 148 FEDERAL RESERVE BULLETIN EARNING ASSETS OF THE FEDERAL RESERVE BANKS [In millions of dollars] Increase (+) or decrease ( - ) Dec. 24, Jan. 21, Feb. 25, 1924 1925 1925 Dec. 24, 1924-Jan. Jan. 21- 21, 1925 Feb. 25 Total earning assets Discounts Acceptances ._.'__. United States securities. 1,332 945 1,130 396 390 538 203 306 423 434 317 365 +185 -193 -115 +231 +11 -58 The turn in the direction of the gold movement, which has recently influenced the relation of member banks to the Four years of gold imports. i reSerVe -i banks > i haS COme P, after continuous gold imports, which have been for several years the largest factor decreasing the degree of dependence of member banks upon the reserve banks. In commenting upon the use made by member banks of this gold received from abroad and upon its influence upon the domestic credit situation, the Federal Reserve Board in its annual report for 1924 says: In 1924, as in other recent years, the most important single influence affecting the volume of Federal reserve bank credit in use was the continued inflow of gold. While net imports of gold in 1924 were somewhat less than in 1923, they represented a continuation of a movement which has lasted for over four years, and since their effect upon the relative position of Federal reserve banks and member banks has been cumulative, their influence is clearer when considered in perspective. Gold received from abroad is deposited by member banks with the reserve banks, and its immediate effect is to increase their reserve balances. The use made by member banks of these additions to their reserve balances depends upon the extent of the currency demand and upon the indebtedness of member banks at the reserve banks at the time the gold is received. In 1921, when liquidation was under way, balances arising out of the $667,000,000 of net gold imports, as well as the currency returned From domestic circulation, were used to reduce indebtedness at the reserve banks. In 1922, when the volume of member bank borrowing was at a low level and there was an increased demand for currency, the larger part of the MARCH, 1925 additions to reserve balances due to gold imports of $238,000,000 were used to meet the currency demand, though a part remained as a basis for the growth in deposit liabilities of member banks which occurred during the first half of the year. In 1923 practically the entire amount of net gold imports of $294,000,000 was used by member banks in lieu of additional borrowing at the reserve banks to meet demands for currency, and the earning assets of the reserve banks remained practically unchanged. In 1924, though the volume of earning assets of the reserve banks and the volume of money in circulation fluctuated considerably during the year, at the end of the year they were both at about the same levels as at the beginning, and the $258,000,000 of net gold imports are reflected in a growth of member bank balances. For the entire four-year period the net gold imports and the net decline in currency in circulation have been reflected in a decrease of nearly $2,000,000,000 in the earning assets of the Federal reserve banks and a growth of $3,000,000,000 in the loans and investments of member banks. This divergence in the movement of Federal reserve bank credit and member bank credit since 1920 is shown in the following table: RESERVE BANK AND MEMBER BANK CREDIT, 1920-1924 [Amounts in millions of dollars] End of— 1920 Change 1920- 1923-24 1924 1921 1922 1923 1924 Federal reserve banks: Total earning assets. 3,235 1,524 1,326 1,211 1,249 -1,' +38 Member bank re1,780 1,753 1,934 serve balances 2,220 +440 +322 All member banks: Total loans and in25,888 23,644 25,769 26,738 29,027 +3,139 +2,289 vestments Deposits on which reserves are com17,616 16,816 18,966 19,505 21,985+4,369 +2,480 puted Ratio of earning assets of reserve banks to loans and investments of member banks (per cent) 12.5 5.1 4.5 6.4 4.3 Ratio of reserve balances to deposits on which reserves are computed (per cent).. 10.0 10.5 10.2 9.7 10.1 I The large increase in the loans and investments of member banks and the decline in the earning assets of the reserve banks, shown in the table, has reduced the ratio of Federal reserve bank credit to member bank credit in use from 12.5 per cent in 1920 to 4.3 per cent in 1924. The ability of member banks 149 FEDERAL RESERVE BULLETIN MARCH, 1925 to increase the volume of their own outstanding credit and at the same time to decrease their use of reserve bank credit was due principally to the receipt during the four years of $1,500,000,000 of gold from abroad. While the proportion of the amount of reserve bank credit outstanding to loans and investments of member banks is only a fraction of what it was in 1920, the ratio between reserve balances maintained by member banks at the reserve banks to member bank deposit liabilities, as shown by the table, has remained practically constant at about 10 per cent, which represents on the average the minimum required by law. This constancy reflects the fact that member banks have currently utilized the full amount of credit that could be supported by the increase of $440,000,000 in their reserve balances. Thus, notwithstanding the large addition to their balances, the member banks were obliged in the autumn of 1924 to increase their borrowings at the reserve banks in order to meet the seasonal demand for currency. The unusually large growth in member bank credit during 1924 and its distribution between banks in financial centers and F W i? u °i member bank outside are reflected in condicredit in 1924. ^ l o n reports lor all member, banks for December 31, 1924; which have recently become available and are shown in detail on pages 215-216. Changes in principal items for all member banks for the year and for the last quarter of 1924 are shown in the following table: and in loans being in about the same volume. At the end of 1924 total loans for the first time exceeded the peak of 1920, though total loans and investments have been above the high figure for that year since early in 1923. Total deposits increased by $3,875,000,000 during the year, of which $1,679,000,000 was the increase in demand deposits, and the remaining $2,200,000,000 was about equally divided between the growth in time deposits and bankers' balances. Comparison of the end of year figures with those for October 10 show that during the last quarter of 1924 loans and investments of member banks increased by $576,000,000, of which more than one-half represents the increase at banks in the New York Federal reserve district. The much larger part of the growth of member bank credit at banks in the financial centers than at banks outside those cities is brought out in the following table, which shows changes in the principal items for member banks in reserve and central reserve cities and for so-called country banks: MEMBER BANKS IN 1923 Loans Investments Total loans and investments 1 1924 1924 Dee, Oct., 1923 1924 19,052 7,686 19,820 8,631 20,182 8,845 +1,130 +1,159 +362 +214 26, 738 28, 451 29,027 +2, 289 +576 Increase in 1924 Amount Banks in reserve cities Banks outside reserve cities Banks Banks in outside reserve reserve End of E n d of End of E n d of cities cities 1923 Dec. 31, Oct. 10, Dec. 31, OUTSIDE [In millions of dollars] ALL MEMBER BANKS [In millions of dollars] Increase (+) or decrease (—) s i n c e - RESERVE CITIES AND Loans „_ 11,527 4,029 Investments Total loans and investments... 15, 556 10,435 Demand deposits 3,820 Time deposits 3,066 Due to banks 919 Due from banks 1 1924 1923 1924 12,713 4,931 7,525 3,657 7,469 3,914 1,186 902 156 257 17, 644 11,999 4,552 3,999 1,171 11,182 5,652 4,830 446 905 11,383 5,768 5,252 549 1,168 2,088 1,564 732 933 252 201 116 422 103 263 Decrease. Total loans and investments of member banks in the larger cities increased by about 13 -59 +6 per cent, while at the banks outside of the Total deposits 30,772 32, 362 +3,875 28,487 + 1 , 590 financial centers they increased by less than 2 1 Including certified and cashiers' checks. per cent. Compared with a growth of more Total loans and investments of member than $1,000,000,000 in loans at banks in reserve banks increased by $2,289,000,000, or 9 per cities, country banks show a slight decrease in cent, during 1924, the increase in investments loans for the year. Investments increased in Demand deposits Time deposits Due to banks United States deposits- 16, 087 8,651 3,512 237 16,383 9,597 4,490 302 17, 766 9,805 4,548 243 +1,679 +1,154 +1,036 +1,383 +208 +58 150 FEDERAL RESERVE BULLETIN both classes of banks, but the increase in the larger cities was much greater. The absence of an active demand for credit for commercial purposes during 1924 resulted in a flow of funds to the money centers reflected in a growth of bankers7 balances, which furnished a considerable part of the funds used by city banks in increasing their loans and investments. Since the beginning of this year banking developments, as shown by the weekly reports of member banks in leading Recent changes j j t s t with the rapid c a n k i n g SUUa i n ct irees a? s en ci on n l roaa n s a n d i n Y e s t " ments and in deposits during the greater part of 1924, have been characterized by some decline in total loans and investments and a considerable reduction in demand deposits. In 1924 the continuous inflow of gold both directly increased the deposits of member banks and provided them with reserve balances to support a growth in their credit, and the recent outflow of gold has been a factor in reducing deposits and in diminishing the balances of member banks at the reserve banks. In New York City, where the growth of member bank credit in 1924 was largest, there has been a considerable decline in investments, which were at their peak in the middle of November, and since January also a decrease in loans. Both loans and investments for reporting member banks outside of New York City have continued to increase, though at a slower rate than in 1924, and total loans for all reporting member banks at the middle of February were larger than at any time in recent years. During the first two weeks of February there was an increase in commercial loans, which have continued near the high level reached during the autumn months of 1924. More recently there has also been some increase in the demand for currency. Since the latter part of January there has been a considerable growth in borrowing by member banks at the reserve banks, particularly at the Federal Reserve Bank of New York. In the money market, following the brief period of decline after the turn of the year, MARCH, 1925 these recent developments were reflected in an increase of rates on commercial paper to a level higher than at any time since the middle of last year. Rates on bankers' acceptances, after an almost continuous rise for more than six months, were in February more than 1 per cent above the rates prevailing during the summer months of 1924. On February 27 the discount rate at the Federal Reserve Bank of New York, which had been at 3 per cent since August 8, 1924, was advanced to 3*^ per cent, the rate prevailing at the Boston, Philadelphia, Cleveland, and San Francisco reserve banks. NOTES Annual report of Federal Reserve Board. The text of the annual report of the Federal Reserve Board, covering operations for the calendar year 1924, has been submitted to Congress and is now available. The full report, including detailed statistical tables, is in preparation. Meeting of Federal Advisory Council. The Federal Advisory Council held its first quarterly meeting in 1925 on February 16. Paul M. Warburg was reelected president and E. F. Swinney, vice president. In addition to these officers the following members were elected to constitute the executive committee: C. A. Morss, vice chairman, L. L. Rue, J. M. Miller, jr., and F. O. Wetmore. Index-Digest of the Federal Reserve Act. The third edition of the Index-Digest of the Federal Reserve Act and amendments has recently been issued. A limited number of copies is available for distribution at $2 per copy. Persons wishing to obtain copies should address the secretary of the Federal Reserve Board. Report of Gold and Silver Commission. The Commission of Gold and Silver Inquiry of the United States Senate has issued a report on European currency and finance by John Parke Young. This volume, in addition to a discussion of the relation of the United States to currency problems of Europe and a detailed account of currency and financial conditions in principal European countries, contains a series of papers on currency and finance by leading American and European economists. MABCH, 151 FEDERAL BESEKVE BULLETIN 1925 BUSINESS CONDITIONS IN THE UNITED STATES Further growth in production during January carried the output of basic commodities to the highest point reached since the spring of 1923. Employment at industrial establishments increased slightly, but remained below the level of a year ago. Prices of farm products continued to advance, and there were smaller increases in the wholesale prices of most of the other groups of commodities. Production.—Production in basic industries, after a rapid increase in recent months, advanced 9 per cent in January and was 35 per cent above the low point of last summer. The most important factor in the increase in the level of production since August has been the greater activity in the iron and steel industry, but in January the output of lumber, minerals, food products, and paper, and the mill consumption of cotton, also showed considerable increases. The woolen industry was somewhat less active in January, and output of automobiles, though larger than in December, was considerably smaller than a year ago. Further increases during the month in employment in the metal, textile, and leather industries were largely offset by seasonal declines in the number employed in the building materials and food products industries. Building activity, as measured by contracts awarded, though less in January than during the closing months of 1924, was near the high level of a year ago. Trade.—Railroad shipments were in record volume for this time of year, and loadings of merchandise and miscellaneous products were particularly heavy. Wholesale trade in January, however, was slightly smaller than in December. Sales of groceries, shoes, and hardware were in smaller volume, while sales of .dry goods and drugs increased. Department-store sales in most districts were somewhat smaller than a year ago, but sales of mail-order houses were considerably larger. Prices.—Wholesale prices, as measured by the index of the Bureau of Labor Statistics, rose 2 per cent during January to the highest level in four years. The increase of 10 per cent in the index since last June represents an advance of 19 per cent in prices of agricultural commodities and 3 per cent in other commodities. In the first half of February prices of grains, wool, coal, and lead declined, while petroleum and gasoline prices advanced sharply, and cotton silk, and rubber showed smaller increases. Bank credit.—Loans and investments of member banks in leading cities, following the rapid growth during the last half of 1924, declined by about $100,000,000 between the middle of January and the middle of February. This decrease represents a reduction in the holdings of investments, chiefly at banks in New York, partly offset by an increase in loans. Loans on stocks and bonds increased, though less rapidly than in the latter part of 1924, while loans for commercial purposes declined slightly from the high level reached in the middle of January. PER CENT ibO PER CENT PER CENT 150 200 200 150 150 100 100 50 50 f ft / \ / 100 AT 50 50 PRODUCTION IN BASIC- INDUSTRIES WHOLES/\LE PRICES 0 1322 1323 1925 Index of 22 basic commodities adjusted for seasonal variations. (1919= 100.) Latest figure, January, 127 33405—25 2 1922 1923 1924- 1925 Index of United States Bureau of Labor Statistics. (1913=100, base adopted by bureau.) Latest figure, January, 160 152 FEDERAL RESERVE BULLETIN BILLIONS OF DOLLARS BILLIONS OF DOLLARS MARCH, 1925 BILLIONS OF DOLLARS BILLIONS OF DOLLARS 10 2 1923 1922 192A- 1922 1925 1923 1924 1925 Weeklyfiguresfor member banks in 101 eading cities. Latest figures February 11 Weeklyfiguresfor 12 Federal reserve banks. Latestfiguresfor February 18 Net demand deposits, owing largely to decreases at New York City banks, declined sharply from the high point reached in the middle of January. At the Federal reserve banks the seasoned liquidation resulting from the return flow of currency from circulation came to a close by January 21, and during the following four weeks there was an increase in total earning assets. This increase reflected largely the demand for gold for export, which led member banks to increase their discounts at the reserve banks. Reserve bank holdings of United States securities declined further, while acceptances showed relatively little change for the period. Money rates, after remaining comparatively steady during most of January, showed a firmer tendency during the early part of February, when rates for prime commercial paper advanced to 3% per cent. BUSINESS INDEXES OF THE FEDERALJRESERVE BOARD [Monthly average 1919-100] Production in basic industries * October November.. December.. January---February... March April May June July August SeptemberOctober November.. December., January - 1923 1924 118 116 110 Factory Building Railroad Wholeemploy- contractsl sale car awarded loadings * trade ment 101 100 99 Department store Department store stocks» Unadjusted Unadjusted Adjusted Adjusted Bank debits outside oi NewYork City* 151 167 172 118 120 113 148 142 202 130 126 126 146 149 123 131 133 132 105 105 105 120 120 116 114 103 94 94 94 103 109 107 117 170 163 164 150 129 125 121 133 150 166 196 180 118 125 115 121 117 103 111 111 117 120 116 124 109 102 115 133 127 120 91 93 119 141 141 211 125 127 115 130 123 120 122 119 131 124 126 132 115 127 138 140 135 127 122 126 137 147 148 124 131 135 137 136 135 133 130 126 128 132 131 133 105 110 109 112 109 103 108 108 107 112 107 112 127 168 123 109 124 119 134 120 1925 78 i The indexes of production in basic industries, building contracts, car loadings, and bank debits are adjusted to allow for seasonal variations. The indexes of department store sales and stocks are shown both with and without seasonal adjustments. FEDERAL RESERVE BULLETIN MARCH, 1925 BANK CREDIT 153 and changes for this period and since February, 1924, are shown in the following table: On February 18 the loans and investments of reporting member banks in leading cities PRINCIPAL RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS were about the same in volume as at the [In millions of dollars] beginning of the year, a decline in the investment holdings of these banks, chiefly in the Earning assets New York district, being slightly in excess of the growth in their loans. During the first Date seven weeks of the year loans secured by stocks •Si and bonds continued to increase, and commercial loans at the end of this period were slightly above the level of the first of the year. 1925 Demand deposits declined sharply from the 21 945 203 306 423 3,083 2,216 1,699 high figure reached at the beginning of the Jan. Jan. 28-__ 989 274 308 394 3,083 2,265 1,684 4 1,032 322 389 3,065 2,268 1,690 308 year, while time deposits continued-to increase. Feb. Feb. 11 1,060 332 390 3,041 2,242 1,714 325 1,046 _. 342 378 3,045 2,257 1,699 312 The following table shows the principal re- Feb. 18 1,130 Feb. 25-___ 434 365 3,030 2,270 1,729 317 sources and liabilities of member banks in Increase (+) or decrease (—) for six weeks ending leading cities for December 31, 1924, and for Feb. 25 +185 +231 +11 - 5 8 - 5 3 +54 +30 each week between January 14 and February Year ending Feb. 25 +179 -98 +54 +209 -200 +284 -293 18, as well as changes for the seven weeks and * Including foreign loans on gold and all other earning assets, for the year ending February 18. CONDITION OF ALL MEMBER BANKS LOANS, INVESTMENTS, AND DEPOSITS OF MEMBER BANKS IN LEADING CITIES During the latter months of 1924 loans of member banks continued the growth which [In millions of dollars] became pronounced in June, and on December 31, as indicated by the quarterly reports of Deposits Loans and investments condition recently become available and published on page 215 of this issue, the total for all All Loans member banks was $29,026,000,000, an insecured other Date loans, Invest- Net de- Time by crease of $576,000,000 since October 10 and of Total stocks largely- ments mand $2,288,000,000 since the close of 1923. Total comand bonds mercial deposits (including demand and time deposits, balances due to banks, and United States 4,862 4,849 Government deposits) were $32,361,000,000 on 1924—Dec. 31 _. 18,600 8,206' 5,531 13,254 1925—Jan. 14 18,680 4,878 4,853 8,261 5,557 13,355 Jan. 21 18,635 4,894 8,193 4,869 December 31, 1924, or $3,875,000,000 in excess 5,548 13,143 Jan. 28 8,163 18,539 4,888 4,876 5,488 13,014 Feb. 4 8,184 18,567 4,930 4,900 of the total on the same date in 1923. 5,453 13,040 Feb. 11 8,182 18,547 4,933 4,925 5,432 13,093 The growth in total loans and investments durFeb. 18 8,234 5,404 12,995 18,575 4,937 4,936 Increase (+) or deing the year, the greater portion of which occrease (—): Dec. 31-Feb. 18. -25 -127 +87 curred in the last six montns, represented about +75 +28 -259 Feb. 20, 1924Feb. 18 +2,154 +859 +760 equal increases in loans and in investments. +385 +910 + 1 , 760 Total loans of all member banks were $20,181,000,000 at the close of 1924, $361,000,000 The total volume of reserve bank credit in above the amount on October 10 and $917,use, after a marked decline from the high 000,000 above June 30. This growth was point reached in December, 1924, increased entirely in the loans of member banks in reserve during the latter part of January and in and central reserve cities, the loans of country February, due to growth in the volume of banks showing, in fact, a slight decline during the reserve banks' discounts for member banks the period—more particularly between June 30 which more than exceeded declines in the and October 10. Investment holdings of holdings of United States Government securi- member banks, at $8,845,000,000 on December ties. Acceptances, after declining in the open- 31, were $848,000,000 above the total for June ing weeks of the year, remained practically 30; the increase for the last three months of the constant between January 21 and February year was about one-fourth of that amount. 25. The principal resources and liabilities The largest additions to the banks' holdings of the Federal reserve banks for the period consisted of securities other than United between January 21 and February 25, 1925,States Government securities. The growth 154 FEDERAL RESERVE BULLETIN MARCH, 1925 in the total investments of member banks during the last six months of 1924 occurred both in reserve cities and outside; for the last quarter of the year, however, investments of member banks in New York City showed some decline. Demand deposits of member banks, continuing the increase which began in the spring months, rose rapidly during the closing months of the year to the highest point on record. Bank balances held with city correspondents, after a rapid growth prior to October 10, increased only slightly during the last quarter of the year. Time deposits continued to grow throughout the period. In the following table are shown the amounts of the principal resources and liabilities of all member banks, by class of banks, on December 31, 1924, and the extent of changes since June 30. in February. Commercial paper was in less active demand, and by the third week in the month the rate on 4-6 months maturities had increased from 3% per cent to Z% per cent, the rate prevailing at the end of 1924. Moderately increased sales of bankers7 acceptances to the Federal reserve bank early in February and an advance in the reserve bank's minimum rate on short maturities was followed by a general rise in open-market bill rates. Despite these advancing money rates, the prices of Government securities and the yields on both short and long term issues remained practically constant throughout the month. The renewal rate on call loans averaged higher in February than in January. The table below shows the rates prevailing in the New York market during the past three months: PRINCIPAL RESOURCES AND LIABILITIES OF ALL MEMBER BANKS DECEMBER 31, 1924 MONEY RATES IN N E W YORK [Per cent] [In millions of dollars] Dec. 31, 1924 Prime commercial paper 4-6 months All Central Counmem- reserve Reserve city try ber city banks banks banks banks Total loans and investments. Total loans 1 Total investments United States securities. Other bonds and stocks.. Total deposits Demand deposits 2 Due to banks Time deposits United States deposits- 29,026 20,181 8,845 3,902 4,943 32, 362 17,767 4,548 9,804 242 7,660 5,546 2,114 1,154 960 9,465 6,354 1,947 1,117 46 9,983 7,166 2,817 1,353 1,464 11, 278 5,645 2,052 3,435 146 11,383 7,469 December, 1924 3,914 January, 1925 1,395 Average for week ending: Jan. 31, 1925 2,519 Feb. 7,1925 11,619 Feb. 14, 1925 5,768 Feb. 21, 1925 549 Feb. 28,1925 5,252 50 Changes since June 30,1924 All Central Counmem- reserve Reserve try city ber city banks banks banks banks Total loans and investments Total loans 1 Total investments United States securities. Other bonds and stocks. Total deposits Demand deposits 2 Due to banks Time deposits United States deposits.. +1,765 +917 +848 +295 +553 +2,832 +1,474 +694 +601 +63 +696 +848 +508 +453 +188 +395 +223 +66 +172 +122 +880 +1,176 +406 +645 +500 +37 +234 +188 +36 +10 +221 -44 +265 +6 +259 +776 +423 +157 +179 +17 1 Including rediscounts and overdrafts. * Including certified and cashiers' checks outstanding. MONEY RATES Somewhat firmer conditions in the New York money market, accompanying exports of gold and the flow of funds to the interior, were evidenced by advances in money rates : k Yield on certifiPrime 1 cates of inbankers accept- debtedness ance, 90 days maturing June 15, 1925 Average Reyield on newal 4Ji Jip on cent rate call Liberty loans bonds 2.57 2.61 4.05 4.04 3.49 3.32 2.57 2.61 2.61 2.59 2.61 4.01 4.01 4.02 4.02 4.03 3.50 3.30 3.63 3.50 4.06 In the L/ondoh market rates were very stable during January and early February at levels lower than those prevailing at the end of the vear, but higher than the average rates of October and November. Threemonths bank bills were quoted at 3 % per cent the first week in February and Treasury bills were tendered that week at an average rate of 3.72 per cent. ACCEPTANCE MARKET During the first half of the period from January 22 to February 18 there was little change in the condition of the New York acceptance market, although some increase in the supply of bills was reported from Boston, with a consequent increase in the portfolios of dealers. There were moderate offerings to reserve banks. On February 6 the New York Federal Reserve Bank's buying rates on 30 and 60 day maturities were raised MARCH, 1925 FEDERAL RESERVE BULLETIN 155 The total of capital flotations in the United States during 1924 was greatly augmented by the issue here of foreign securities. A compilation of these issues made by the New York Federal Reserve Bank gives a volume of $1,264,512,000 for the year, including refunding issues, as compared with $431,657,000 for 1923, so that the combination of these figures with the Chronicle's statistics of domestic issues gives for 1924 a total of $6,334,000,000, which exceeds that for 1923 by more than $1,000,000,000. The foreign issues in December amounted to $179,716,000, as compared with $130,600,000 in November and $49,375,000 in December, 1923. December ranked as the fourth month of the year 1924 in the size CAPITAL ISSUES of foreign flotations, being exceeded only by According to the compilation of the Com- February, when the $150,000,000 Japanese mercial and Financial Chronicle, $396,000,000 loan was put out, by September, when unof domestic securities were issued in the United usually large Canadian issues were floated States in December, 1924. This exceeds the here, and by October, when $110,000,000 amount of the November issues but is con- of the international loan to Germany was siderably less than the large volume of flota- issued in New York. The more notable tions in October. Sixty-one per cent of the foreign flotations in December were $30,000,domestic issues were corporate issues, and 23 000 of bonds issued by the Argentine Govper cent of these were for refunding purposes, ernment, $50,000,000 by the Kingdom of industrial corporations issued the largest Belgium, and $40,000,000 by the Andes proportion of securities, with public utility Copper Mining Co. in Chile. Foreign issues offerings next in size, and railroad issues of in January, 1925, were in substantial volume, small importance in December. The new but much smaller than those of the preceding domestic flotations during the month were six months. slightly less than during December, 1923, but the total for the year 1924 was $500,000,000 SECURITY PRICES above that for the year 1923, and larger than for any year previously recorded. The followThe prices of representative stocks continued ing table shows the domestic securities issued early in February the rapid advance which in December, 1924, and during the year 1924, began in November, declined somewhat during as compared with the issues of December, 1923, the third week of the month, but in the next and the year 1923, classified as to type of week recovered to approximately their former security: level. These movements were shared in genDOMESTIC CAPITAL ISSUES eral by both industrial and railroad stocks, [In millions of dollars] but certain groups, including coal stocks and textile stocks, were exceptions to the general December, December, Y e a r > 1924 Year, 1923 advance in January and early February. The rise in prices was accompanied by activity in ReReReReNew fund- New fund- New fund- New fund- the market, and the daily volume of sales has ing ing ing ing averaged over 1,000,000 shares each week since November 1. Bond prices showed little change Total corporate __ 248.3 55.9 261.-6 14.8 3,027.8 491.8 2,648.8 560.3 in January, but advanced somewhat in FebLong-term bonds and ruary. The following table gives indexes of notes 151.0 160.6 13.4 1,923.8 395.7 1,846.3 416.3 stock prices computed by the Standard StaShort-term bonds and notes 8.3 .3 276.1 59.6 143.3 37.2 tistics Co. of New York, the average prices of 11.2 19.7 2.4 92.7 1.2 828.0 36.5 659.2 76.8 40 bonds computed by Dow, Jones & Co., and Stocks 86.1 Farm loan issues. 2.3 2.1 179.1 337. 55.0 the average number of shares of stock sold 86.3 Municipal 3.4 111.9 1.81,, 353.7 17.41,043.1 20.0 dailv for the last four months and for each 336.9 59.3 375.6 16.6 4,560.6 509.2 4,029.4 635.3 Total week of February. to 3 per cent, and dealers subsequently advanced their rates y$ per cent on all maturities up to 90 days. There was an increase in the foreign demand for prime member bank bills of 30 and 60 day maturities, and with easier money conditions a more active demand on the part of both local and out-oftown banks, including savings banks, developed, so that toward the end of the period New York dealers found the supply nardly sufficient to fill orders. Rates in New York on February 18 ranged from 3J^ per cent bid and 3 per cent offered on 30-day bills to 3% bid and 3J^ offered on 5 and 6 months maturities. 156 FEDERAL RESERVE BULLETIN INDEX NUMBER OF SECUKITY PRICES Price indexes of— » Average for— November, 1924 December, 1924 January, 1925 Average for week ending— Feb. 2, 1925, Feb. 9, 1925 Feb. 16, 1925 Feb. 24,1925 Average number Average of shares price of of stock sold of 40 daily bonds 8 (thou- 3 sands) 202 industrial stocks 31 railroad stocks 113.4 119.7 125.8 106.3 111.3 112.6 111.3 117.2 122.0 91.01 90.66 90.91 2,080 1,788 1,774 128.9 129.4 124.6 127.1 113.0 113.7 111.1 113.6 124.2 124.8 120.6 123.1 91.36 91.61 91.61 1,684 1,847 1,570 1,833 233 stocks J For the industrial stocks, the average of 1917-1921 prices equals 100; for the rails the average of the high and low prices made in the 10 years 1913-1922 equals 100. The indexes are weighted by the number of shares of 1each stock outstanding. Arithmetic average of daily peak and low prices as published in Wall Street Journal. 3 Average for 5 days ending on preceding Friday. AGRICULTURAL CREDIT BANKS Intermediate credit banks closed direct loans amounting to $4,206,931 during January, 1925, as compared with $1,447,457 during December, 1924, and rediscounts of $2,688,045, as compared with $3,813,680 in December. The Springfield, Baltimore, and Columbia banks each made loans of $1,000,000 or more, while 6|of the 12 banks made no direct loans in January. All except the Louisville bank rediscounted a certain amount of agricultural paper, but the bulk of the total rediscounting was done by the middle western banks. The following table shows the rediscounts outstanding on February 14, 1925, classified by borrowing organizations, and the direct loans classified by commodities on which the loans were based: DIRECT LOANS Cotton Tobacco Raisins WheatPrunes Canned fruit and vegetr1 les_ Peanuts Rice All other MARCH, 1925 sued $30,000,000 of 10-30 yea* 4K per cent bonds, which brought the total of Federal land bank bonds outstanding to $946,819,307 on January 31, as compared with $914,763,416 on December 31. The net mortgage loans of joint-stock land banks amounted to $435,067,400 on January 31. AGRICULTURE In most sections of the country farm operations were retarded in January on account of the generally unsatisfactory weather for outdoor work. Throughout the Western States low temperatures were accompanied by heavy snows, and the growing grain crops, livestock, and ranges were injured to some extent, but some of the losses were offset by the exceptionally favorable weather during the early weeks in February. Some areas in the Kansas City and Dallas Federal reserve districts are still suffering from a lack of moisture, which is causing a delay in winter plowings and early seedings. In the Richmond and Atlanta districts rainfall in January was excessive which, in addition to delaying farm work, caused frequent floods and heavy losses, particularly in the latter district. PER CENT PER CENT 250 EX PORTS 0F AGR1C ULTURAL PRODUC,TS ( JULY. 1909 - JUNE,1914- = 100 ) \ V Y jr \ \ 1 $11, 913, 500 21, 650, 121 4, 000, 000 1, 724, 366 1923-'24 1921 -22 1922-23 1, 222, 750 427, 146 While marketing of the 1924 crops was 200, 462 349, 774 seasonally smaller m January than in Decem148, 647 ber, it continued in larger volume than in the corresponding month last season. Total 250 Tobacco 41, 636, 766 and vegetables were distributed in larger vol- ume than in December, vegetable shipments being about 50 per cent greater, the largest increase over December in the last six years. Exports of agricultural commodities, as measured by the Department of Agriculture's index and shown in the chart, were seasonally smaller than in December. All Total 19, 198, 655 groups of products showed reduction except Federal land banks increased their mortgage meats. As compared with last year, total exloans during January by $7, 762, 131 and is- ports were 26 per cent larger, due principally REDISCOUNTS Agricultural credit corporations National banks State banks.Livestock loan companies Savings banks and trust companies Cooperative associations $9, 643, 878 18, 177 744, 740 8, 640, 216 151, 644 MARCH, 1925 FEDERAL. RESERVE BULLETIN to a continuation of heavy exports of cotton and wheat. ^1 Agricultural prices advanced further during the month and reached the highest level since November, 1920. Practically all groups, as contained in the Department of Agriculture's index, except dairy and poultry products and a few miscellaneous items, were higher. In view of this rapid rise, the index of agricultural prices at wholesale markets was 161 as compared with 165 for nonagricultural commodities, and the margin between agricultural and nonagricultural prices was narrower than at any time since June, 1920. Grains. The early weeks of January were accompanied by generally cold and unfavorable weather for the winter wheat crop; and there was some damage by alternate freezing and thawing, although the extent of such damage is yet uncertain. In February the weather was milder, and considerable improvement was noted in all sections except in some areas of the Kansas City and Dallas Federal reserve districts, where there was a lack of moisture. Seeding of oats in the Southern States made good progress, and by the middle of February planting was being done as far north as Oklahoma. Winter seeded oats in the Richmond and Atlanta districts continued in good condition and the outlook is much more satisfactory than last year, when the crop was practically killed late in the winter. Marketing of grains in January was seasonally smaller than in December, and while it was heavier than in January last year it was in considerably lighter volume than in January, 1921, 1922, or 1923. Receipts of wheat at principal markets declined from 32,500,000 bushels in December to 24,166,000 bushels in January, as compared with 16,861,000 bushels in January last year. Notwithstanding the reduction in the size of the corn crop, marketing in January was 17 per cent larger than last year, but this increase may be attributed in part to the considerably smaller marketings in rTovember and December, which were due in a measure to the delay of the new crop in reaching the market. Oats were sold in the largest January volume in the past seven years. Trading in grain futures in January, as reflected in reports from the Chicago Board of Trade, was the largest for the period for which records are available- Prices advanced rapidly during the month and reached a peak near 157 the end of the period which, for most of the grains, was the highest since 1920. Early in February there were considerable declines in prices, amounting to 27 cents for winter wheat and about 22 cents for rye. Exports of grains and grain products fell off in January from the high levels reached in the autumn months, but were in about the same volume as in January last year. Cotton. A further increase in the consumption of raw cotton by American mills, continuation of large foreign demand, heavy exports, and generally unsatisfactory weather for farm operations were the most significant factors affecting the cotton market in January. Since last July the consumption of cotton by domestic mills has increased each month with the exception of a slight hesitation in November, and in January about 590,000 bales were consumed, the largest monthly volume since May, 1923, when 621,000 bales were consumed. Exports were larger in January than in December and were the largest for that month since 1915. In connection with the exceptionally large volume of exports it is significant to point out that for the six months of the cotton marketing season ending with January, 5,420,000 bales were exported as against a total of 5,656,000 bales for the entire season ending last July. The movement of cotton from the plantations and small towns of the South to the larger markets is continuing at a rapid rate, and for the season to the middle of February approximately 12,427,000 bales had reached the markets, about 1,000,000 bales less than the total yield. Notwithstanding the large demand for the crop in this country as wefl as abroad, reports indicate that mills have been producing largely to fill current orders, and spinners in Great Britain have recently curtailed production schedules. Weather conditions for the season to date have been decidedly unfavorable for the new crop. In the Richmond and Atlanta Federal reserve districts excessive rains in January delayed farm operations and in the Dallas district a continuation of the drought caused the ground to dry out to such an extent that plowing has been retarded and preparations delayed. With a continuation of the demand for the old crop and unfavorable weather in most of the growing areas the price of cotton strengthened late in January and early in February. 158 FEDERAL RESERVE BULLETIN MARCH, 1925 For the week ending February 13 the price of j continued to decline in January for the third middling cotton at New Orleans was 24.5consecutive month and was smaller than in cents a pound, as compared with 23.8 cents a January of last year. pound a month earlier. Fruits and Vegetables. Tobacco. With the exception of the heavy rains in the During the late autumn months the market- southeastern States early in January, which ing of tobacco was delayed, but in January in- delayed plantings and damaged growing truck creased activity was noted in almost all pro- crops, weather conditions were generally favorducing areas, and the aggregate volume of the able for the winter fruit and vegetable crops in crop marketed was larger than in the preceding the southern sections of the United States. month and exceeded sales in January last year. Shipments of potatoes, grapefruit, and lemons In the Kichmond district a slightly larger per- increased sharply in January and were in larger centage of the total crop was sold prior to volume than in the same month last year. February 1 than for the same period in 1924. Marketing of oranges and apples was seasonally Prices in January were slightly higher than last smaller than in December, but shipments of year, the greatest increases being in the prices oranges were in the largest January volume on paid for the North Carolina crop. Weather record. Throughout the autumn months conditions were generally favorable for hand- apples were marketed in smaller volume than ling the crop in the St. Louis districts, and deliv- in the corresponding months in 1923, and a eries and sales were in large volume. Receipts continuation of lighter shipments was evident and offerings of the 1924 crop of both burley in January. The crop in 1924 was smaller dark varieties were greater than last year and than in 1923, and, in view of the smaller availprices were well sustained. Late in January, able supplies, the price of apples at the New however, and early in February the quality of York market on February 20 was 25 per cent the new burley crop was poorer than earlier in higher than a year ago. Cold-storage holdings the season and prices for such grades were lower. of apples were 35 per cent lighter on February 1 Heavy sales in January were reported by the than last year and 16 per cent lighter than on Burley Tobacco Growers' Cooperative Associ- the same date in 1923. After advancing t a ation, which amounted to approximately 110,- $3.75 a bushel at New York for the week end000,000 pounds. Since December 1 sales by ing February 13 from the low level of $3 a the association have aggregated 172,000,000 bushel at the first of the month, the price of pounds, and, in view of this decided improve- potatoes declined to $3.25 a bushel on Febment in demand, sentiment in the growing areas ruary 20. A year earlier the price was $4.35 has changed and the proposed "cut-out" move- a bushel. ment is less serious than early last autumn. Stocks of all tobacco held by manufacturers Livestock. and dealers were smaller at the beginning of During 1924 the most significant developJanuary than at the beginning of October, but they were still larger than last year. The ments in the livestock industry were reductions table shows the stocks of the different types at in the number of hogs and beef cattle and increases in the number of milk cows and the beginning of 1924 and 1925: sheep. The total number of hogs on farms STOCKS OF TOBACCO and ranges on January 1, 1925, was 18 per cent smaller than at the beginning of 1924 and the [In pounds] number of cattle was 5 per cent smaller. A short corn crop, accompanied by high prices, Types Jan. 1,1924 Jan. 1,1925 made hog raising less profitable, and in order Chewing, smoking, snuff, and export... 1,219,694,350 1,266,082,988 to make losses as light as possible producers Cigar 358,356,222 371,043,245 marketed their stock rapidly in the closing 73,979,605 Imported 76,543,662 months of the year. Continuation' of low Total 1,651,930,177 1,713,669,895 prices for beef cattle, the drought in a considerable part of the range territories, and the Production of cigarettes and manufactured short corn crop resulted in heavy marketing of tobacco products in January exceeded the vol- range cattle, while the relatively higher prices ume in December, but it was smaller than for dairy products, lambs, and wool resulted in that of January last year. The output of cigars a further increase in the number of milk cows- and sheep. Since 1922 the dairy industry has been expanding rapidly, and the total number of milk cows in the country is the largest on record. In January ranges, pastures, and livestock suffered from the continuous cold weather and much feeding was necessary; but in February the weather was milder throughout the western grazing districts and many of the snow-covered ranges were opened, and the stock showed considerable improvement, particularly in the northwestern grazing districts, where the drought was not serious. In Texas and other sections of the Southwest the drought has continued, and the condition of the ranges is considerably lower than last year. Marketing of all livestock was smaller in January than in December, and all animals were sold in fewer numbers than in January last year. After reaching the unprecedented level of 6,604,000 head in December, the number of hogs marketed declined to 6,104,000 head in January, which, with the exception of January, 1924, was the largest number on record for that month. The number of cattle and calves that reached the market in January was 10 per cent smaller than in December, but only slightly below that of last year. Sheep, on the other hand, were marketed in 14 per cent smaller volume than in January, 1924. Dairy products. A sharp increase in the shipments of butter to principal markets in January and a slowing down in the rate of movement out of storage resulted in a much smaller reduction in aggregate stocks in January than a year ago. At the beginning of February stocks of butter were the largest on record for that date, and while they were approximately 200 per cent larger than on the same date in 1923 and 1924, they were not exceptionally heavy when compared with some of the earlier years, as is shown in the table: STOCKS OF BUTTER ON FEBRUARY 1 Pounds. 36, 777, 000 38,359,000 41,486,000 35,047,000 16, 122, 000 15, 243, 000 45, 812, 000 1919 1920 1921 1922 1923 1924 1925 During the months of February, March, and April stocks of butter are rapidly reduced and a low point is reached by the beginning of May. Average stocks at the principal whole- 33405—25 159 FEDERAL RESERVE BULLETIN MARCH, 1925 3 sale markets on May 1 for the past five years were about 6,300,000 pounds, and average holdings on February 1 for the same period were 29,250,000 pounds, the average reduction being about 78 per cent. With stocks amounting to 45,812,000 pounds on February 1 this year, a reduction of about 86 per cent will be necessary in the three months February, March, and April to bring holdings to the average level for the past five years. In view of the large stocks and a continuation of heavy production there was a considerable decline in prices in January, which reached a low point of 373^ cents a pound for 92-score butter at New York for the week ending January 23, approximately 73^ cents a pound below the high level reached in December. Late in January, however, and early in February the market was stronger, and for the week ending February 20 the quotation was 41 cents a pound. Contrary to the situation in the butter industry, stocks of other dairy products are not excessive, and condensed milk is in a more favorable position than a year earlier. Production and stocks of cheese are slightly larger than in 1924 and the prices at several of the wholesale markets are somewhat lower, but the change from last year is much less pronounced than in the case of butter. In view of the relatively better position of the cheese and condensed-milk industries, there is a tendency among some of the butter manufacturers in Wisconsin to increase the output of cheese and condensed milk and to reduce the production of butter. Coal and coke. MINING Recessions in both production and prices characterized the market for bituminous coal during the latter half of January and the first half of February. The Coal Age index of spot prices for bituminous coal, after touching $2.12 on January 12, declined weekly to $2.03 on February 9 and stood at $2.04 on February 16. Daily average production per working day declined during the same period from 2,098,000 tons for the week ending January 10 to 1,624,000 tons for that ending February 14. This recession, which was in contrast to the movement during the preceding four weeks, carried mid-February production below and prices to about the same levels as those at the middle of December. Despite the lower rate of output during the latter half of the month, January production of bituminous totaled 160 FEDERAL RESERVE BULLETIN 51,914,000 tons, a figure that has been exceeded in only two months since 1920. Little change characterized the market for anthracite during the period. January production of 7,400,000 tons was slightly in excess of December but well below January of last year. Production of by-product coke during January reached 3,406,000 tons, a new maximum, while output of beehive at 1,170,000 tons was the largest since March, 1924. Production of beehive for the week ending February 14 was 264,000 tons, as against 276,000 tons the previous week, which was the highest weekly figure attained on the present movement. Petroleum, Improvement in the oil industry, which began late in the autumn, continued in January and February. Although the rapid increase in the output of crude petroleum at the Wortham, Tex., field, reaching a peak of 167,000 barrels a day in the middle of January, caused a larger total production in January than in December, the larger supply was not sufficient to check the rising prices. After the middle of January, however, the flow at Wortham fell off, and by the week ending February 14 the daily average output for the entire country had declined to 1,935,100 barrels, as compared with a peak production for the year of 2,023,650 barrels a day in the middle of January. Although a rapid increase in the supply of crude petroleum from the Wortham field is no longer a serious problem for the oil industry, reports indicate that advancing prices have stimulated expansion in Mexico and wildcatting in the West and Southwest. The rapid advance in the price of crude petroleum since the beginning of the year is pointed out in the following table: Date Jan. 2 " 9-_ " 16 " 23" 30 Feb. 6 " 13 " 20. Price of crude petroleum per barrel $0.90 .90 .90 1.15 1.35 1.35 1.55 1.55 Improvement in the crude petroleum industry was preceded by improvement in the refined products industry. Stocks of gasoline were reduced from 1,650,000,000 gallons at the end of May to 1,180,000,000 gallons at the end MARCH, 1925 of the year, and following this reduction in the supply there were advances in the prices of gasoline. The tank-wagon price at 30 cities supplied by eastern and mid-continent refiners averaged 15.7 cents a gallon at the end of January, as compared with 13.59 cents a gallon in October, the low point for 1924. Prices for other refined products were stronger in January and February than last autumn, but the increases were not as significant as those for gasoline. Metals. In contrast to December activity and price advances lasting well into January, a quieter tone dominated the nonferrous metal markets during the latter part of January and the first half of February. With primary producers frequently out of the market and large consumptive requirements for the first quarter apparently filled, the markets both here and abroad were influenced largely by second-hand and odd-lot dealers, and price recessions from the January highs were recorded in copper, zinc, lead, and tin. The price of refined electrolytic copper delivered at New York, which had advanced to 15 J^ cents on January 14, fluctuated between 143^2 and 15 cents and on February 18 was again quoted at 143^ cents. Production of 144,544,000 pounds in January was well above the high levels of the last quarter of 1924 and the highest monthly production since the war. Shipments of lead from Joplin district during January made a new high, while prices of both lead and zinc, after continuing the December rise during the first half of the month, broke sharply and closed the month lower than at the opening. Shipments of slab zinc from refineries during January were slightly under the high levels of November and December, but still in excess of production, which made a new high, so that stored stocks were further reduced and at about 19,000,000 tons were the lowest since June, 1923. Production of silver in January was 5,374,000 ounces, the lowest since July, 1924. Quotations for bar silver in New York continued to recover during January and reached 6934 on the last day of that month, but fell off subsequently and stood at 6 8 ^ on February 18. In spite of deliveries of tin in the United States during January that were higher than for any month since April, 1924, stocks within the country increased to 4,394 tons, the highest since July of last year. Straits tin averaged slightly over 57 cents during the four weeks MARCH, 1925 FEDEKAL RESERVE BULLETIN 161 ending February 18 and ended the period at present prices. As a result of large slaughterthat price, in contrast to a high of 60 J^ on ings of hogs and cattle, cold-storage holdings January 3. of pork and beef products are considerably MANUFACTURING larger than last year, but lamb and mutton Food products. products were in about the same volume. Greater activity was noted in the flour and Both domestic and foreign demand for meats sugar manufacturing industries in January and meat products were larger than in Decemthan in December, but the production of meat ber and dollar sales by 41 packers reporting to products as measured by the number of animals the Chicago Federal Reserve Bank were 7 per slaughtered was smaller. The output of flour cent greater than in January last year. Exports was 6 per cent larger than in December and of hams, bacon, lard, and most beef products with the exception of January, 1920, was in the increased during the month, but practically all largest volume for that month in the past five products were shipped abroad in smaller volyears. Milling operations in the Chicago, ume than last year. Minneapolis, and Kansas City Federal reserve districts were higher than in December, but Textiles. production in the St. Louis district was 4 per Buying of textile products was fairly active cent smaller than in the preceding month. during January and February, markets on the Rapid advances in the ""price of wheat in whole continued rather strong, and production January were accompanied by higher quota- was increased or maintained at relatively high tions for flour, which, for the week ending levels to cover orders previously received. January 30, reached $10.50 a barrel for spring The few price changes noted recently have patents at Minneapolis. Early in February, varied in extent and direction, but some ^Tere with the decline in the price of wheat, flour important, such as the increases in men's quotations dropped to $9.45 a barrel, but part suitings at the openings of fall lines. of this loss was recovered during the remaining Demand for cotton goods has been well weeks of the month. Average flour prices for maintained, and although orders in general the entire month of January were the highest are probably not as numerous as they were a for any month since October, 1920, and were few weeks ago, buying of certain constructions about $3.50 a barrel higher than last year. In of print cloths and finished goods has been view of the violent fluctuations in the grain rather active. Prices have remained without markets buyers were purchasing only for im- significant changes for several weeks; the mediate requirements. Exports were in con- Fairchild index of cotton goods prices has siderably smaller volume than in December fluctuated within a narrow range around and were in the smallest volume for January 15.65 since November 22. In fact, fluctuations in the last six years. of cotton goods quotations since last April The output of sugar in January increased 75 have been smaller than during any similar per cent over December and was in the second period since the war. The cotton-yarn market, largest volume on record for that month. on the other hand, has weakened somewhat Prices of both raw and refined sugar declined since the first of the year, and the Fairchild in January, and on February 20 refined sugar yarn index has fallen from 44.44 in the first was 46 per cent and raw sugar 56 per cent week of January to 42.44 for the week ending lower than last year. February 21. Manufacturing operations were All animals except sheep were slaughtered in increased further during January, as indicated fewer numbers in January than in December. both by mill consumption of raw cotton and As compared with January a year ago there were by active spindle hours, which were the largest increases in the slaughterings of cattle, calves, recorded since May, 1923. In the cottonand hogs, but the increases were compara- growing States consumption and the number tively small. The number of hogs slaughtered of spindles active during January were the in January was the second largest monthly greatest on record. Imports of cotton goods figure on record and followed from the excep- have been heavy recently; in January receipts tionally heavy marketings in December and at principal ports totaled 18,682,690 square January. Reports indicate that while market- yards, the largest figure reported for any month ing has been large the hogs have been lighter of the past year. in weight than ordinarily, which is indicative Early in February the American Woolen Co. of the tendency among producers to sell their opened its fall lines of men's wear at an average herds rather than attempt to feed corn at advance over last year's prices of 6.6 per cent 162 FEDERAL RESERVE BULLETIN on 50 staple suitings. Increases in woolens were greater than in worsteds. Buying since the openings has in general been only fairly active, but woolens continued to be more popular than worsteds. Manufacturing operations in the industry were at a somewhat lower rate in January than in December, according to the percentage of machinery hours active. Consumption of raw wool, on the other hand, was slightly greater during January than in December. December figures from the men's clothing industry show a much larger number of garments cut than in the same month a year before. The raw-wool market has been weaker since the first of the year, and prices throughout the world have declined. Fairchild's index of domestic raw wool prices fell from 144.976 in the week of January 24, the highest figure since 1920, to 140.590 in the week of February 21. Wool stocks on December 31, as reported by the Bureau of the Census, were the smallest recorded since the figures began in 1922. The accompanying table shows the data for domestic and foreign wools for certain recent dates. In recent months imports have increased considerably; they totaled 47,503,591 pounds in January, the largest figure recorded since April, 1923, and weekly data indicate a continuation of shipments at the same rate. MARCH, 1925 advances in yen exchange were important factors in the recent price rise. Demand for knit goods has been fairly strong since the first of the year. Orders have increased and production schedules have been somewhat enlarged. Production of practically all classes of hosiery increased in December and was much greater than a year earlier. Preliminary reports indicate further increases in January in shipments and orders as well as in production. Production and orders for knit underwear also increased considerably in December, but shipments were somewhat smaller and stocks were enlarged. Early in February prices of wool underwear were advanced by a leading producer. Iron and steel. Orders for iron aitd steel products have been much lighter since the first of the year than during the last few months of 1923. Specifications on contracts placed at that time for first quarter delivery are large, and production is at a high level; furthermore, unfilled orders are probably sufficient to maintain active manufacturing operations for several weeks, but orders for second quarter requirements are not being booked in large quantities. The level of prices is now higher than when contracts were made last fall. The recent advance, however, ,has been checked and some declines have been STOCKS OF RAW WOOL IN THE UNITED STATES noted, but the general level, as indicated by [Actual weight in thousands of pounds] the Iron Trade Review's composite price, has been relatively stable since the first of JanuTotal Domestic Foreign ary. Quotations on steel scrap were particularly weak, and several reductions were made. 131,373 131,123 Dec. 31, 1924. 304,215 185,527 118,689 Sept. 30, 1924 Production of pig iron and steel ingots in 323, 713 182,298 141,415 June 30, 1924. 273,971 112, 701 161, 270 January was the largest ever before recorded in Mar. 31, 1924. 315,471 148,537 166,934 Dec. 31, 1923. 373, 534 81,624 291,910 that month, and the total output of ingots has Mar. 31, 1923. 420,655 177,656 242,999 been previously exceeded only twice—in May, Sept 30, 1922 1923, and March, 1924. The daily average Marked improvement was noted in the silk production of steel ingots has increased 115 per industry during January and February—buy- cent since the low point in output last July. ing increased considerably, productive opera- In February the rate of operations was retions were enlarged, and prices rose. Takings of duced slightly and toward the end of the month raw silk by American mills totaled 39,885 bales averaged about 88 per cent, as compared with in January, more than in any month since the 92 per cent at the end of January. Furnaces statistics began in 1920. Imports continued in blast on February 1 totaled 251—61 per large, but were smaller than in December and cent of the total number of stacks. Unfilled were less than mill takings. Consequently orders of the United States Steel Corporation, warehouse stocks were reduced for the first in face of large production and shipments, intime since July. Stimulated by large orders, creased 220,000 tons during January to 5,037,producers of both tjirown silk and silk goods 323 tons, the largest total since August, 1923. nave increased production. The price of raw Railroad buying, particularly of bridge masilk again turned upward in February and ad- terial, continues to be an important factor in vanced to the highest point since last March. the market, but car and locomotive awards Greater strength m the Yokohama market and during January were the smallest recorded in MARCH, 1925 FEDERAL RESERVE BULLETIN several months. Some increase in car orders were noted in February. Although prospective building is large, structural steel bookings in January totaled less than in any month last year. Automobile manufacturers continue to be conservative buyers. Demand for semifinished products has been fairly heavy, although here also some slowing down in buying has been noted. The pig-iron market has likewise been dull in recent weeks. Automobiles and tires. Slight seasonal increases in production and factory shipments of automobiles were reported in January, but both sales and output continued small as compared with previous months. The current situation presents a sharp contrast to that of a year ago, when production was at a high rate and dealers were placing large supplies of cars in storage in anticipation of the spring demand, which failed to develop to the extent expected. Production of passenger cars totaled 204,000 in January, as compared with the recent low point of 179,000 in December and with 287,000 a year ago. Railroad shipments were practically the same as in December and considerably smaller than during January, 1924. Manufacturers report an increase in sales to dealers as compared with December, while dealers' sales to users were smaller. Certain dealers in the Middle West reported to the Federal Reserve Bank of Chicago an increase in the number of cars on hand at the end of January as compared with those held a month earlier and a decrease within the past year. A number of price reductions were made in December and in the first part of January, but few have been announced since the middle of January. The demand for trucks has continued fairly good, and production has been relatively stable since the middle of 1923. For the second successive month production of automobile tires and tubes in January exceeded shipments, and stocks increased. Inventories are rather large as compared with those on corresponding dates of previous years, but the increase is not so great when the year-to-year growth in shipments and production is considered. After a sharp decline in prices in January, the crude-rubber market strengthened and quotations rose about the middle of February. Imports in January totaled 73,700,000, as compared with 59,000,000 in December and 49,000,000 in January, 1924. 163 Lumber. Shipments of lumber in January, as reported by the National Lumber Manufacturers' Association, totaled 1,287,000,000 feet arid production 1,225,000,000 feet. Production in this month exceeded the cut of lumber in November and in December, and was in excess of production in any preceding January since 1918. The Federal Reserve Board index for lumber production, corrected for seasonal variation, rose from 128 for December to 145 for January. Shipments in January were above the corresponding total for December and also above that for January, 1924. They exceeded the total production in January, as was the case in the same month last year. Last year in January shipments were running above production. As reported by the West Coast Lumberman's Association, shipments of Douglas fir ran below production during October and November and exceeded production in December and January. Shipments of southern pine, as reported by the Southern Pine Association, exceeded production in October, November, and December, and fell below production in January. In the seven weeks ended February 14, 1925, lumber cut reported for eight associations totaled 1,516,000,000 feet, shipments 1,589,000,000 feet, and orders 1,535,000,000 feet. For these weeks production was 4.6 per cent, and orders were 3.4 per cent below shipments. Hides, leather, and shoes. Hide and leather markets have noted some decrease in activity since the first of the vear, but on the whole business has been fairly good for this season. Sales of hides and skins were reported to be less active on the Chicago market, and prices have declined since the middle of January, but lower prices are usual at this season because of the poorer quality of hides and skins offered. Raw stocks of cattle hides increased in December, but those of calf, goat, and sheep skins were further reduced, and all were smaller than a year earlier. Stocks disposed of were much larger than in December, 1923. Demand for leather has lessened a little recently, but on the whole has been fairly well maintained. Prices have been firm, with advances noted in a few cases. Stocks of finished leather were in general reduced during December, and production was greater than in November, although for some types of leather output was less than in December, 1923. Stocks in process on December 31 were 164 FEDERAL RESERVE BULLETIN all smaller than at the end of the previous year. Preliminary figures show a decrease of 6 per cent in the production of sole leather during January to 1,294,319 backs, bends, and sides. Tanners' finished stocks were reduced and stocks in process were increased. Shoe manufacturers are now producing in preparation for deliveries of shoes for Easter. Producers report more activity in the buying of women's shoes than in the case of men's lines. In general, factories are booked up until Easter, but few orders have been received for later delivery. Shipments have been seasonably dull. Production of shoes was about 7 per cent greater in January than in December, totaling about the same as in January, 1924. Decreases in output were noted in the Philadelphia and Chicago districts, whereas increases occurred in the other important producing sections. Sales of shoes at wholesale were smaller in January than in the corresponding month last year. BUILDING Contracts awarded in 11 Federal reserve districts during January indicated for this month in comparison with the month preceding a decrease of nearly 9 per cent in the value of projected building. Statistics compiled by the F. W. Dodge Co. show decreases for the Boston, Cleveland, Richmond, Atlanta, Chicago, and St. Louis districts, and increases for the New York, Philadelphia, Minneapolis, Kansas City, and Dallas districts. January values contracted for a year ago in 10 of these districts combined held very close to the preceding December total, but the December-January decrease this year in these districts from $327,000,000 to $294,000,000, although considerable in amount, leaves the volume of new building contracted for at a high figure for January—only 2 per cent below the exceptionally high total for January a year ago and more than 20 per cent above that for January two years ago. The New York district, which in January of this year reported more than one-third—$110,000,000 out of $310,000,000—of the values represented in contract wards in the 11 districts, reported an increase of $8,500,000 in January over December, the January total this year, which is close to that for January, 1924, being in excess of the January, 1923, figure by $44,000,000 and double the January, 1922, total. Square feet contracted for in 27 northeastern States decreased in nearly the same proportion MARCH, 1925 as values—9.5 per cent, from 46,800,000 feet in December to 42,342,000 feet in January. Five out of eight classes of construction show decreases, the most considerable being that for residential building contracts. This year's January total for all classes of construction is 15 per cent below that of January, 1924. The number of square feet of residential construction contracted for in January of this year was 23,518,000, which is less by nearly onethird than the corresponding total of 34,693,000 for January, 1924, and below the total of 24,586,000 for January, 1923. Number and value of building permits issued in 168 selected cities of the United States also declined in January from the totals of the month preceding. Number of permits issued decreased from 41,519 in December to 38,735 in January, and values from $247,000,000 to $213,000,000, the decrease in values amounting to 13.7 per cent. Value decreases from the December totals are shown for the cities of 10 Federal reserve districts, and relatively small increases for the Dallas and San Francisco districts. In January of 1924 these same cities issued 42,096 permits, covering values totaling $222,000,000. In comparison with January a year ago decreases in values are shown for the cities of eight districts, and increases for the cities of four districts, the net decrease for the 168 cities combined amounting to 4.2 per cent. On February 20 the price of Portland cement per barrel was $1.85, which was the price recorded for the preceding week, for a month ago, and for a year ago. The price of bricks on February 20 ($14 per thousand), while materially lower than in February a year ago, has not changed in recent weeks, and the price indexes for lumber also indicate only inconsiderable price changes. The Bureau of Labor statistics price index for building material, however, advanced in January to 179.3 from 175.1 in December. TRANSPORTATION Freight-car loadings in January of 3,991,557 cars for all classes of freight combined ran close to the December total of 3,931,109 cars, the increase of January over December being somewhat under average seasonal change for these months, with the result that the Federal Reserve Board index of car loadings corrected for seasonal variations declined slightly—from 124.2 to 122.9 per cent. Car loadings in January were, nevertheless, greater than in any MARCH, 1925 January of the six years, 1919 to 1924, for all classes of freight combined, and specifically for miscellaneous freight, merchandise 1. c. 1., grain and grain products, forest products, and coal. Loadings of ore and coke, while not in record volume, were in excess of, and loadings of livestock were close to last year's movement. Loadings in January ran above the December totals in the Allegheny, Pocahontas, northwestern, and central western districts, and fell off in the eastern, southern, and southwestern districts. They ran above the 1924 January totals in all districts excepting the eastern. Weekly figures show that in the week ended February 14 loadings of coke, ore, merchandise, and miscellaneous freight were running above, and loadings of grain and grain products, livestock, coal, and forest products, and of all classes combined, below last year's totals for this week. In February, as in January and in each month of the preceding year, the roads were maintaining a large surplus of serviceable cars, with practically no shortage attributable to failure on their part to provide for traffic needs. Reports for February 14 show a surplus of 220,798 cars and a shortage of 511 cars. Toial operating revenues for Class I railways in December, amounting to $505,522,950, were $10,908,235, or 2.2 per cent above, while total operating expenses, amounting to $381,415,252, were $6,738,761, or 1.7 per cent below the corresponding totals for 1923. The operating ratio of expenses to revenue was accordingly lower in December of 1924 than in the corresponding month of 1923, being reduced to 75.45 from 78.48 per cent. Final figures for the calendar year 1924 give total operating revenues of Class I roads as $5,986,492,120, which falls short of the 1923 aggregate by $373,931,093, or 5.9 per cent. Operating expenses totaled $4,558,307,781, giving in comparison with the preceding year a decrease of $386,827,617, or 7.8 per cent. In 1924, according to compilations of the Bureau of Railway Economics, operating revenues were 3.4 per cent above and operating expenses 6 per cent below the average of the five preceding years. The operating ratio on the year's account as a whole was brought down from 77.75 for 1923 to 76.14 for 1924. Net railway operating income for Class I roads in 1924 gives a rate of return on the book investment of the carriers of 4.33 per cent, which is below the rate of 4.48 per cent earned in the preceding year. 165 FEDEKAIi RESERVE BULLETIN Wholesale trade. TRADE Total volume of wholesale trade in the United States in January was smaller than in December. For the past three years trade in January has increased over December, but this year the Federal Reserve Board's index was about 1 per cent less than in the preceding month. Sales of groceries, shoes, hardware, machine tools, diamonds, jewelry, and electrical supplies showed the greatest declines, while sales of meat, dry goods, drugs, millinery, and farm implements were larger. Reductions in the distribution of shoes occurred in all Federal reserve districts except in the Atlanta, St. Louis, and San Francisco districts, and were heaviest in the Cleveland, Philadelphia, Minneapolis, and Chicago districts. Aggregate dollar sales were 2 per cent smaller than last year. Declines were noted in all leading lines except groceries, meat, furniture, and agricultural implements, but increases in the sales of groceries were not general, since six Federal reserve districts reported a smaller distribution than last year. Greater sales of agricultural implements, on the other hand, were indicated in all reporting districts. Sales of dry goods were about 16 per cent smaller than last year, and declines were noted in all Federal reserve districts except in the Minneapolis district. Stocks of merchandise at wholesale firms in six Federal reserve districts from which reports were received were larger than at the end of December, and stocks of groceries and drugs were larger than at the close of January last year. Smaller sales of dry goods in January resulted in large increases in stocks, varying from 11 per cent in the Philadelphia district to 32 per cent in the Dallas district. Shoe stocks were heavier in all reporting districts at the end of January than in December, but smaller than in January a year ago. Collections were smaller than in December, but larger than in January last year. Accounts outstanding, however, were smaller for most lines at the end of the month than at the end of December and were somewhat smaller than a year ago in most sections of the country. Retail trade. Trade at retail stores in January was seasonally smaller than in December, but when adjustment is made for the usual seasonal change in January, sales at grocery, 5-and-10, drug, 166 FEDERAL BESERVE BULLETIN music, and candy chain stores were larger. Although sales at mail-order houses and at all chain stores were larger than last year, business at department stores was no larger than in January, 1923. Mail-order house and drug chain sales were in approximately 10 per cent greater volume than last year and increases at grocery and 5-and-10 chains were about 20 per cent larger than a year ago. Sales at department stores, after correction for seasonal variation, were 5 per cent smaller than in December, and declines were evident in all Federal reserve districts except Dallas. As compared with January last year, aggregate dollar sales at these stores were in about the same volume, but there were increases in sales in the three mid-western districts— Chicago, Minneapolis, and Dallas. Retail distribution in the New York district was approximately the same as last year, but it was in smaller volume in other eastern districts and the southern districts. Analysis of these data, by departments, indicates that sales of silks, velvets, neckwear, veilings, toilet articles, leather goods, misses7, juniors', and girls' ready-to-wear, corsets, brassieres, negligees, aprons, house dresses, and shoes were all in more than 6 per cent larger volume than last year. Departments selling cotton dress goods, ribbons, silverware, men's clothing, women's coats and skirts, waists, sweaters, gloves, toys, and sporting goods, on the other hand, reported a substantially smaller volume of business than last year. - The aggregate dollar value of stocks of merchandise at department stores was 5 per cent smaller than at the end of December, but was about 3 per cent larger than in January last year. Reductions from December occurred in all Federal reserve districts except in the Atlanta district, where they were 10 per cent larger than at the close of the preceding month. Inventories of departments carrying neckwear, veilings, handkerchiefs, silverware, leather goods, boys' wear, women's coats, misses' ready-to-wear, negligees, aprons, and glassware showed the greatest increase in stocks over last year. Stocks of women's suits, misses' ready-to-wear, sweaters, millinery, and men's and boys' shoes, on the other hand, were substantially smaller than last year. The rate of turnover for department stores, as measured by the relation of the volume of sales to stocks, was slower than in January last year. Goods moved more slowly in all Federal reserve districts from which data were received except in the Atlanta, Minneapolis, and Dallas districts. Outstanding MARCH, 1925 orders of department stores at the end of January were in about the same volume as at the end of January last year. PRICES Wholesale prices increased in January by 1.9 per cent, according to the index of the Bureau of Labor Statistics. The largest increase, of 4.3 per cent, was in the index for farm products, but all the groups, with the exception of cloths and clothing and miscellaneous commodities, showed advances for the month. From the low point of June, 1924, the general level of prices advanced 10 per cent. This advance reflects a rise of 22 per cent in the price of farm products and of 18 per cent in the price of foods, with smaller advances in most of the other groups and an actual decline in the fuel and lighting group. When regrouped by stage of manufacture, raw materials snowed an advance of 3.3 per cent, which reflects the rise in crops, animal products, forest products, and a slight increase in mineral products. Producers' goods and consumers' goods each rose 1 per cent. For the period June, 1924, to January, 1925, all groups showed increases; raw materials advanced 13 per cent, reflecting a 19 percent rise in crops and a 22 per cent rise in animal products. Consumers' goods increased 12 per cent, and producers' goods showed an advance of less than 3 per cent. In the following table are shown index numbers of wholesale prices in the United States, as grouped by the Bureau of Labor Statistics and as regrouped by the Federal Reserve Board: WHOLESALE PRICES IN THE UNITED STATES [1913=100] 1924 1925 DeJanuary cember All commodities Bureau of Labor Statistics groups: Farm products Foods Cloths and clothing Fuel and lighting Metals Building materials Chemicals and drugs. _ House furnishings Miscellaneous Federal Reserve Board groups: Raw materials Crops Animal products. _ Forest products _. _ Mineral products _ Producers' goods Consumers' goods June January 160 157 145 151 163 160 191 168 136 179 135 173 127 157 158 191 165 133 175 135 172 129 134 136 187 175 132 173 127 172 111 144 143 200 169 142 181 132 176 117 167 196 133 193 172 134 169 161 186 129 187 169 132 167 147 165 109 182 168 130 151 156 182 115 194 170 136 156 MARCH,, 1925 In February the prices of many commodities, including wheat, oats, rye, sheep, flour, eggs, copper, and hides, declined, while advances were shown for corn, barley, hogs, potatoes, lumber, and petroleum and gasoline. Retail food prices, according to the index of the Bureau of Labor Statistics, increased by about 2 per cent in January, reflecting an advance in prices of cabbages, eggs, potatoes, flour, corn meal, oranges, cheese, lard, bread, ham, and coffee. Over a year ago the advance in food prices has been about 4 per cent. Cost of living also showed some advance in January. EMPLOYMENT Increases in the volume of employment in certain important industries during January were largely offset b y seasonable declines in others. The index of employment in manufacturing industries increased only slightly— from 92.7 in December to 93.1 in January. P a y rolls actually decreased during the period. Declines in both employment and wage earnings is considered usual at the first of the year, owing to the temporary closing down of many plants for inventories and repairs. I n New England, however, pay-roll totals were larger than in December, although they were smaller in every other section, and the decrease for the country as a whole was nearly 3 per cent. Despite the fact that the volume of production is higher than it was a year ago, factory employment and wage payments are about 5 per cent smaller. By industries, iron and steel, textiles, and leather and shoes reported more employees in January. On the other hand, in lumber, stone, clay and glass products, food products, and tobacco there were seasonal declines. The automobile industry reported a larger number than in several months, b u t as compared with last January this industry showed the largest decrease. Furthermore, in the east north central section of the country, where the automobile industry is important, there have been larger declines in pay-roll totals within the past year than in any other section. Of the more important industries the greatest increase in January was noted in iron and steel and in boots and shoes. Establishments reporting to the Bureau of Labor Statistics operated at 92 per cent of full time in January with 82 per cent of a full 33405—25 1 167 FEDERAL RESERVE BULLETIN force of employees. The former figure was unchanged and the latter 1 point larger than in December. As in preceding months, the only important wage changes during January were reductions of about 10 per cent in the wages of cotton-mill operatives. These decreases affected 20,000 employees, making a total from that industry of over 75,000 whose wages have been lowered in the past 10 months. SAVINGS DEPOSITS The total of savings deposits reported by 907 banks distributed throughout the United States was $7,675,205,000 on February 1, 1925, as compared with $7,656,758,000 on January 1, 1925, and $7,183,402,000 on February 1, 1924. This represents an increase of 0.25 per cent during January, a month when the growth of savings deposits is apt to be checked by withdrawals following the crediting of interest, and an increase over the year from February 1, 1924, to February 1, 1925, of almost 7 per cent. The Atlanta and Chicago districts were the only ones showing decreases in savings deposits during January, while increases of over 1 per cent occurred in the Boston, Philadelphia, Minneapolis, and Dallas districts. A comparison of savings deposits on February 1, 1925, with a month and a year previous, is shown, by Federal reserve districts, in the following table. In the Boston and New York districts the figures represent only deposits of mutual savings banks; in all other districts, where there are but few mutual savings banks, savings deposits of other banks are included. SAVINGS D E P O S I T S , BY F E D E R A L R E S E R V E DISTRICTS {In thousands of dollars] District Num- ' Feb. 1, ber of 1925 banks Jan. 1, 1925 Feb. 1, 1924 Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.-.. Kansas City... Dallas San Francisco.. 64 30 79 69 89 94 197 31 14 58 111 71 1,295,931 2, 058,549 517,463 825,337 329,862 235, 533 929,765 141,167 91, 957 104, 057 98, 698 1,046,886 1, 282,074 1, 227, 742 1,922, 678 2,056,333 483,826 512, 550 761,251 825,020 293,099 327,741 221,692 238, 829 897,435 937,486 135,025 140,326 88,478 90,774 99,990 103,709 93,377 97, 337 1, 044, 579 Total,-.. 907 7,675,205 7,656, 758 7,183,402 168 FEDERAL RESERVE BULLETIN COMMERCIAL FAILURES AND BANK SUSPENSIONS During January 2,317 commercial failures were reported by R. G. Dun & Co., indicating an increase of nearly 14 per cent from the total of the preceding month. These insolvencies involved liabilities amounting to $54,354,032— 20 per cent above the total for December. Both the number and liabilities were higher than in the same month of 1923 or 1924. Of the total number of insolvencies 480 occurred among manufacturing enterprises, 1,757 in the trading group, and 80 among agents and brokers. Although manufacturing and trading insolvencies were considerably more numerous in January than in December of last year, the increase in the total amount of indebtedness in default was largely attributable to the occurrence of a few failures of unusual size among agents and brokers. There were six failures in this group, which had average liabilities of about $2,804,000, which compares with an average of $23,459 for all commercial failures during the month taken together. It is usual for failures to be more numerous in January than in December; in fact, decreases have occurred between these two months in only two years, 1919 and 1920, out of the past 20 years. Although the number of insolvencies in January of this year was higher than in the same month of 1923 or 1924, the relative increase from the month of December was less this year than for January, 1923 or 1924. Commercial failures were more numerous in January than in the same month last year in all except the Philadelphia, St. Louis, Minneapolis, and Kansas City districts. Comparing the same months, liabilities were higher in only the New York, Richmond, Atlanta, Dallas, and San Francisco districts. Comparative data, by districts, for the month of January are presented in the following table: FAILURES DURING JANUARY Federal reserve district Number 1925 1924 Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis-. Kansas City.. Dallas San Francisco. 217 416 80 199 188 • 156 345 127 103 134 78 274 203 407 113 175 152 136 251 143 104 168 Total... 2,317 2,108 Liabilities 1925 1924 $3, 742,645 20, 028,016 1, 747,846 4,937,059 4,029,401 2, 750, 320 9, 753, 298 433,149 1,095, 724 1,678, 389 1,312,836 2,845,349 $7,173,862 8,884,038 2,157,916 6,160,933 3, 505,170 2,452,051 12,641, 812 1,669,880 1,129, 225 2,035, 090 1,170,988 2, 291, 543 54,354,032 51,272,508 MARCH, 1925 BANK SUSPENSIONS, JANUARY, 1925 During January there were 96 banks, with capital and surplus of $6,222,000, reported to the Federal reserve banks as having been closed (including in this number 1 nonmember bank in the Dallas district which was closed and reopened within the month). This tot-il, which compared with 60 for December, was higher than for any month since January of last year, when 136 banks were reported closed. Of the total number of suspensions for the month 63, with capital and surplus amounting to $3,260,000, were nonmember banks and 33, with capital and surplus of $2,962,000, were member banks; 9 of the latter were nonnational member banks and the remaining 24 were national banks. Increases in the number of suspensions occurring during January this year, as against the latter months of last year; were more marked in the Atlanta, Chicago, and Dallas districts, and more particularly in the States of Georgia, Iowa, and Texas, than elsewhere. During the month 5 nonmember banks previously closed were reopened, 3 in the Minneapolis district and 1 each in the Dallas and San Francisco districts. Although the figures for bank failures represent so far as could be determined banks which had been declared insolvent or were closed by order of supervisory authorities, it is not known how many of the latter institutions may ultimately prove to be solvent. BANKS CLOSED DURING JANUARY, [Amounts in thousands of dollars] All banks Member 1925 Nonmember Capital Num- Capital Num- Capital and and and Number surplus ber surplus ber surplus All districts Richmond Atlanta Chicago St. Louis Minneapolis _ Kansas City Dallas San Francisco 6,222 417 765 2,047 686 567 823 548 369 133 23 64 2,962 209 499 903 305 241 507 298 7 63 5 8 21 5 9 11 73 1 3,260 208 266 1,144 686 262 582 41 71 1 Comprises 24 national banks, capital and surplus of $2,012,859, and 9 nonnational member banks, capital and surplus $948,870. 2 One nonnational member bank, with capital and surplus of $40,000. s4 Two nonnational member banks, with capital and surplus of $163,350. Two nonnational member banks, with capital and surplus of $425,440. 6 Two nonnational member banks, with capital and surplus of $188,630. •7 Two nonnational member banks, with capital and surplus of $131,450. Includes one bank closed and reopened within the month. FOREIGN TRADE Imports of merchandise during January totaled $346,000,000, an increase of $13,000,000 over the previous month, of $50,000,000 MARCH, 1925 FEDERAL RESERVE BULLETIN 169 GOLD MOVEMENT over January of last year, and the highest figure shown since May, 1923. Exports of UNITED STATES merchandise were $447,000,000, an increase of about $2,000,000 over December and of In January there were net exports of $68,$52,000,000 over January last. Net exports declined by $12,000,000 as compared with 000,000 of gold from the United States, the December, from $113,000,000 to $101,000,000, largest for any month in the history of the but rose slightly as compared with January, country. Gold imports into the United States during 1923. The total visible export balance during January totaled $5,038,000, the smallest figure January amounted to $174,000,000, compared shown since November, 1919, about 49 per with $57,000,000 a year ago. The great excess cent of the imports in December and about of exports for the month vas brought about 11 per cent of those for January, 1924. By by the fact that the gold export balance was countries, the largest decreases in the two $68,000,000, compare^^ith an import balance recent months as compared with a year ago are shown in imports from England, which declined of $45,000,000 during January, 1923. from about $23,000,000 to a negligible amount, and from Canada, which declined from about MERCHANDISE T R A D E BALANCE OF THE U N I T E D $8,500,000 to about $3,000,000. Imports from STATES the Netherlands a year ago were about $6,[In thousands of dollars] 000,000, wThereas none were shown during the Excess of Excess of last two months. Month Exports Imports imports exports Gold exports during January totaled $73,489,000, the largest figure shown since June, 1924 January 395,172 295,506 99,666 1919, when exports were $82,973,000. JanFebruary. 365, 775 332,323 33,452 March 339,755 320,482 19,273 uary exports rose by more than 85 per cent 346,936 324.291 22,645 April _ 335,099 302,988 32, 111 as compared with December, while for JanMay 306,989 274,001 32, 988 uary, 1924, gold exports were negligible—only June 276,649 1,945 278, 594 July The greatest increase for the month 330,659 76,117 $281,000. 254, 542 August— 427,460 140,316 September 287,144 October 527,172 216,420 under review was shown in exports to British 310,752 November 493, 573 197,425 India—about $36,500,000 compared with $5,296,148 December 445,742 112,569 333,173 700,000 during December, and none a year ago. 3, 609,944 4, 590,981 Year 981,037 Exports of gold to Germany, $20,000,000 1925 during December and $17,500,000 during Jan100, 393 January 446, 577 346,184 uary, are, with two negligible exceptions, the first exports of gold from this country to Most of this TRADE BALANCE OF THE UNITED STATES FOR JANUARY, Germany since the armistice. 1924 AND 1925 gold appears to have gone into the reserves [In thousands of dollars] of the Reichsbank, which show between the end of November and the end of January an MerGold Silver Total increase of 139,000,000 gold marks, or over chandise $33,000,000. Another notable item is an export during January of $6,354,000 of gold 1924 5,980 Imports.. 295, 506 45,136 346, 622 to Australia. 395,172 281 Exports.. 8,209 403,662 Silver imports during January totaled $7,Net imports (—) or ex+2,229 ports (+) I +99,666 - 4 4 , 8 5 5 +57,040 304,000, of which over $4,000,000 came from Mexico and about $2,000,000 from Peru. 1925 7,304 5,038 358, 526 Exports of silver totaled $11,308,000, of Imports I 346,184 446, 577 73,489 11,308 531, 374 Exports. which about $4,000,000 was sent to British Net imports (—) or exIndia, $3,600,000 to England, and $3,000,000 +4,004 +172,848 ports (+) .1+100,393 +68,451 to China. 170 FEDERAL RESERVE BULLETIN GOLD IMPORTS INTO AND EXPORTS FROM THE UNITED STATES [In thousands of dollars] January, Decem- January, 1924 ber, 1924 1925 IMPORTS England France Netherlands Canada.. Mexico _ Argentina China.Egypt Allother __. Total.. 128 71 11 3,036 3,120 517 2,730 473 2,715 20 2 1,180 1,309 22,940 2,120 5,915 8,466 560 203 512 486 3,934 5,038 10, 274 45,136 5,078 1,309 17, 500 3,284 1,003 33 343 750 36,466 942 6,354 427 10,264 34 20, 000 1,324 1,001 188 466 30 5,674 220 474 2 73,489 39, 675 281 68,451 29,401 EXPORTS England . France Germany Netherlands Sweden Canada... Mexico Uruguay British India... Hongkong. Australia __ All other . Total Net imports.. Net exports _. . _ 128 138 GREAT BRITAIN balance of net exports for November of £163,000. For the 12 months ended December, 1924, gold imports were £35,794,000, a decline as compared with 1923 of £8,193,000, which is accounted for by the smaller imports from the Transvaal. Gold exports declined by an almost equal amount, £8,015,000. The greatest decrease was shown in exports to British India, which declined frc a £19,000,000 to £12,000,000. Exports to the United States declined from £33,000,000 to £29,900,000, and to Egypt from £2,000,000 to £1,385,000. Exports to Russia during 1924 totaled £2,000,000, while in 1923 t>ere were none. Net exports for 1924 showed an increase of £178,000 as compared with 1923. GOLD IMPORTS INTO AND EXPORTS FROM GREAT BRITAIN 13 44, 855 MARCH, 1925 IMPORTS Sweden Netherlands _ United States Egypt. Rhodesia Transvaal West Africa All other December, 1924 November, 1924 £5,888 _ 2,623,103 £132,900 3,360 2,564 211,627 1,883,917 151, 824 25,218 189,447 1,085,176 114,095 143,155 12 months 12 months ended ended December, December, 1923 1924 £173,100 123,841 2,767,197 10,525 2,447, 348 28, 533, 217 1,450,808 287,828 £8,217 66,333 2, 654,877 57,678 2, 263, 388 37,474,494 1,252,362 209, 306 Imports of gold into Great Britain during Total — 4,901,577 1,670,697 35,793,864 43,986, 655 December totaled £4,900,000, the largest EXPORTS amount shown since April, and almost three 82,478 724 8,241 90, 872 times as large as the figures shown for Novem- Belgium 131, 697 6,070 23, 822 409, 653 France 1,470,586 62,821 177, 796 1,224,840 _ ber, The largest increase was shown in im- Netherlands 44, 580 1, 922, 470 2,000,497 56,993 136, 500 601, 590 Sweden _ ports from the United States, which rose by Russia 160,710 152, 554 Switzerland more than £2,600,000, almost as much as the United States 29,188 29,906,220 33,005,253 1, 688,376 1,421,754 12, 264, 600 19,092, 740 British India. total received from the United States during Java 238,407 48,194 17,916 .. . 289,512 252, 007 34,208 11, 364 Settlements the preceding 11 months or during the year Straits 2,030,500 1, 385, 710 25, 385 Egypt 26,350 1923. Indeed, for a figure at all comparable, All other 875,479 1,082,870 54,325 330, 855 it is necessary to go back to 1910, when im4,189, 274 1,833,471 49,419,607 57,434,355 Total ports from the United States totaled £6,700,- Net imports 712,303 000. Imports from the Transvaal during Net exports 162,774 13,625,743 13,447,700 December rose by about £800,000 as compared with November. INDIA Exports of gold during December totaled In view of the important r6le of gold exports £4,189,000, an increase of £2,356,000 over November and the largest figure shown since to India in the international gold movement, a last May. Exports to Russia, which occurred brief statement of the statistics is here prelast October for the first time since the Rus- sented. Below is given a table showing the gold sian revolution, showed the largest increase for the month, being £1,900,000 as against movement into and from British India for the £45,000 for November and £33,000 for Oc- 15 years ending March 31, 1910 to 1924, inclutober. An increase of £267,000 was also sive, with subtotals for the five pre-war, war, shown in exports to British India during and post-war years. I t will be noted that of December as compared with November. Net the 15 years for which figures are given, only 3 imports for December (£712,000) were the show a net export of gold, and of those 3 years, largest since April, 1923, and compare with a 2 fall within the period of the war. 171 FEDERAL RESERVE BULLETIN MARCH, 1925 TOTAL GOLD IMPORTS INTO AND EXPORTS FROM BRITISH INDIA GOLD IMPORTS INTO AND EXPORTS FROM BRITISH INDIA, BY PRINCIPAL COUNTRIES—Continued [In thousands of dollars] [In thousands of dollars] Year ended Mar. 31 Exports Net imports 80,099 89,256 132, 780 132,131 90,324 10, 725 12,524 11,948 23,327 15, 688 69,374 76,732 120,832 108, 804 74,636 524,590 74,212 450,378 34,252 16,901 42, 681 96, 508 8,174 9,780 20,451 328 12,990 28,154 24,472 Imports 1920 Net exports 1921 1922 1923 1924 1 Total EXPORTS HUO I till 1012 lt»13 1U14 T o t a l , 1910-1914 1015 IUI0 1917 IMS 1&1U Japan United States... All other Total _ 213 420 559 29,887 79,825 213 420 559 110,904 52,896 55,411 2,597 * January to November, inclusive. FOREIGN EXCHANGE 3,549 42, 353 83, 517 24, 204 28,692 4,743 50,668 940 465 Leading European exchanges showed slight declines during February. Sterling declined 150,342 23, 529 from $4.79 on February 2 to $4.76 on the Total, 1915-1919 71, 703 198, 516 126,813 Net imports 18th and remained at atout that level during 55,471 151.673 207,144 the remainder of the month; French francs de7,219 73,121 80,340 41,015 7,557 clined from 5.41 cents per franc during the first 36, 458 395 122,296 122, 691 five days of February to 5.13 on the 28th; 205 89, 719 89, 924 11*2-1 Total, 1920-1921 173,207 370, 907 7,557 Italian lire declined from 4.16 on the 2d to 4.03 536, 557 363, 350 Net imports cents per lira on the 25th; the Netherlands Total, 1910-1924 1, 259, 663 319,122 971,027 31,080 florin from 40.31 cents per florin on the 2d to 940,541 N't't imports 40.01 cents on the 27th. Swedish kronor, however, remained practically steady at 26.95 cents krona. The Canadian dollarfluctuatedbeThe following table shows the gold movement per tween 99.80 and 99.92 cents per dollar. into and from India since 1920, by principal South American exchanges also showed slight *M>untries. Imports from Great Britain for the whole period reviewed in the table amounted recessions; the Argentine peso from 91.31 ««» 56 per cent of the total, and, except for cents per peso on February 3 to 89.63 cents on 1021, this proportion is fairly evenly sus- the 13th; Brazilian milreis from 11.63 cents on tained. Imports from the United States vary the 2d to 10.99 cents on the 26th; and the from 14 per cent during 1920 to nothing Chilean peso from 10.80 cents per peso on the during the 11 months of 1924, while the amount 2d to 10.65 cents on the 14th, after which it received from Australia and New Zealand rallied to 10.95 cents on the 24th. nvwages 10 per cent of the total and is in Of the Far Eastern exchanges the Shanghai tael fluctuated between 74.73 and 75.75 cents relatively constant proportion. Exports during 1920 and 1921 went almost per tael; the Indian rupee between 35.59 and entirely to Japan and to the United States, 35.86 cents; and the Japanese yen between since that time gold exports from India have 38.52 and 39,73 cents. !»wn negligible. FOREIGN EXCHANGE RATES 19,980 February, 1925 HOLD IMPORTS INTO AND EXPORTS FROM BRITISH INDIA, BY PRINCIPAL COUNTRIES Exchange [In thousands of dollars] 1920 1921 1922 IMPORTS »«..i B r i t a i n »n««<l States ».--»i.-ilia a n d N e w Zca Ui.il . nllHT Total._ 140,195 29,772 5,277 54,988 3,153 3,140 17, 590 2,415 10,390 2G, 009 17,491 18,271 213, 5GGJ 28,336 86,789 Low 1923 I 19241 January, 1925 Par value High I Low January, 1924, average High Total Sterling 486.65' 475.78 479.33 474.99 19.30! 5.13 5.41 5.30 French franc German reichs23. SOi 23.80 23.801 23.80 mark 4.16 4.03 19. 30! 4.03 78,774 i 46,34132;5, 575 Italian lira 14,286! 4,091 54,442 Netherlands florin. 40. 20! 40.01 40.31 40.30 Swedish krona 26. 80i 26.93 26.95 26.921 19.30! 19.21 19.30 19. 25 10,S35j 10,033 51, 263 Swiss franc 18,505! 67,28814 ^,564 Canadian dollar. _ 100. 00! 99.80 99. 921 99.53 Argentine peso... 90.4Si 89. (53 91. 31! 90. 46 06. 85 j 74. 73! 75. 75 i 74.32 122, 400; 127, 753J578,844 Shanghai tael ! 480.37 478.17 425.91 5.43 5.39 4.67 23.80 4.24 40.61 26.96 19.50 99.96 91.39 75. 96 23.80 4.17 40.41 26.95 19.34 99.69 91.08 75.34 4.34 37.35 26.18 17.32 97. ?'> 73. 65 70.27 172 FEDERAL RESERVE BULLETIN SOUTH AFRICA AND THE GOLD STANDARD Gold redemption was suspended in South Africa in 1920 for a period which was succes-1 sively extended to last until July 30, 1925. Under the law as it now stands conversion will be restored automatically June 1 of the current year, or whenever the market price of gold is 77s. 103^d. per standard ounce (i. e., when sterling reaches parity), whichever date is earlier. In view of the approach of the date set for the resumption of specie payments, Mr. Hayenga, the minister of finance of South Africa, invited Prof. E. W. Kemmerer, of Princeton University, and Dr. G. Vissering, president of the Netherlands Bank, as commissioners, to visit South Africa and to study the question of the desirability of a return to the gold standard. In the middle of January the commissioners made a report recommending the resumption of gold payments by South Africa, regardless of whether similar action is taken by England. The text of the report is printed below. It may be stated by way of introduction that the currency unit of the South African Union is a pound of identical gold value with the pound sterling. Until recently the South African pound has stood at a substantial premium over the pound sterling. With the rise of the latter unit nearly to dollar parity in early January, the South African pound actually rose somewhat above dollar parity and consequently above its nominal gold value, a situation presently corrected by a reduction in the quoted premium on South African exchange in London. While this situation lasted, however, there was a suspension of offerings of South African gold in the London bullion market, the gold being taken instead to the Pretoria mint for coinage into sovereigns. At the same time there was a rapid increase in the holdings of gold coin and bullion by the South African Reserve Bank, the item rising from £552,458 on January 3, 1925, to £1,020,343 on the 10th and £2,237,589 on the 17th and £2,728,947 on the 24th—a net increase of £2,176,489. Since the South African Government has announced that no legislation will^be introduced postponing the resumption of specie payments beyond June 30, it would appear that the South African Union will return to the gold standard on July 1 of this year or W » For discussion of currency and banking in South Africa, including a summary of the law establishing the South African Federal Eeserve Bank, see BULLETIN, 1922, p . 1324. MARCH, 1925 earlier, and will thus act in accordance with the commission's recommendations. The report of the commissioners was printed in the South African Cape newspapers for January 16,1925, in its entirety, with the exception of the first 10 sections, which relate to the appointment of the commission, etc., and is here reproduced from that newspaper. The occasional subheadings have been added for convenience and form no part of the original report. REPORT OF THE COMMISSIONERS RELATION OF SOUTH AFRICAN POUND TO STERLING 11. Under present conditions, the problem practically narrows itself down to the question: Should South Africa in determining now her future monetary policy, decide to tie up definitely with sterling, hoping that sterling will return to a gold basis soon, but being prepared to follow sterling wherever it may go, or should she decide to tie up definitely with gold? For some time the South African pound has been considerably more valuable then the pound sterling, but not until within the last few days has it been, as measured by exchange rates, as valuable as the gold sovereign. Although bearing the name of a pound, the South African monetary unit has been for several years, both in its gold value and in its value as measured by its purchasing power over commodities, a different pound than the pound sterling. It has responded very incompletely, and with substantial lags in time, to the ups and downs in the value of sterling. This fact has led to confusion and misunderstanding among bankers, merchants, and the public generally. Your commissioners believe that South Africa is too small a country from an economic point of view to have a monetary standard so independent of the monetary standards of other countries, and that it is clearly to South Africa's interest to tie up definitely, either with sterling, as Egypt has done, or with gold, as Canada is doing. The question is, which? 12. It has been suggested that South Africa might tie up to sterling with the condition that should sterling depreciate in its gold value further than a certain point, say, for example, further than 10 per cent below gold parity, South Africa should break with it at that point, and either wait there for sterling to come back or then begin to deflate at once the South African currency toward gold parity. Your commissioners do not believe that such a plan would be desirable, and they doubt if it would be carried through if once adopted. Should sterling depreciate below the limit fixed, this plan, as contrasted with the early adoption of the gold standard, would increase the probability of wide fluctuations in the value of the South African pound—10 per cent is about a year and a half's interest in South Africa—and would thereby increase the uncertainties and the risks of South African business. It is improbable that if South Africa should follow sterling down 10 per cent she would be willing to break with sterling at that point. Should sterling decline further, the same arguments and sentiments that have prevailed in the past, and that would be determining such a decision in the present, would be likely to prevail in the future. Prof. Edwin Cannan recently well said: "As usual, when currency has once become depreciated, it is a MARCH,, 1925 FEDEKAL EESERVE BULLETIN case of jam yesterday and jam to-morrow, but never jam to-day." (Economic Journal, December, 1920, p. 524.) It is usually exceedingly difficult to stop an inflation movement after it has once gained momentum. 13. If, however, the plan were adopted; if sterling should depreciate below the 10 per cent limit, and if the plan were then carried out. South Africa would find herself in the awkward position of having a monetary standard that was neither gold nor sterling—her own little standard, different from that of any country of the world—and she would be confronted with the problem of either immediately undergoing the pains of deflating toward gold parity or of temporarily debasing her monetary unit to the 10 per cent gold discount level while awaiting the return of sterling, and then, when and if sterling should come back to this level of deflating with sterling to gold parity. This might well take a long time. Your commissioners see no advantage in such a plan at all commensurate with the risks of the serious evils that its adoption would involve. 14. At the time of this writing (January 3, 1925), the London-New York telegraphic register transfer rate is quoted as 4.75, or only 2.2 per cent below gold parity. The South African telegraphic transfer buying rate is 3^2 per cent discount, and the selling rate is 2$^ per cent discount, making the mean rate between the buying rate and the selling rate 3.06 discount; so that the South African pound to-day is 0.86 per cent above gold parity. It has, in fact, been within 2 per cent of gold parity ever since your commissioners left London ,in the latter part of November. 15. The present high sterling dollar rate is the highest quoted since March 19, 1919, when the rate was unpegged. The London-New York rate advanced almost continuously throughout the year 1924, beginning with an average rate for the month of January, 1924, of 4.259, or a rate of about 123^ per cent below gold parity and of about 10 per cent below the rate of to-day. If the rate should advance half as rapidly during the next six months as it has advanced during the past year, it would be at gold parity before July 1. PROGRESS TOWARD GOLD STANDARD IN 1924 173 This fact, together with the great unstability of the sterling-dollar rate during the past five years and the many failures of the exchange prophets during that period, are calculated to make one very modest in his prophecies as to what will happen to sterling during the year 1925. It is sufficient to say if sterling returns to parity by July 1 next South Africa's problem will have been largely solved. NECESSITY FOR PROMPT DECISION 17. In accordance with the present law (act No. 22 of 1923), South Africa will automatically return to the gold standard on July 1, 1925, unless legislation to the contrary is passed between now and that date. •Perhaps, in no other field is the old adage: "To be forewarned is to be forearmed," the embodiment of a sounder philosophy than in the field of monetary reforms. Dangers cease to be dangers when they are anticipated and when their probable effects can be discounted. The public of South Africa ought to know at the earliest possible date what course is to be taken on July 1, so that they can prepare for it, and this is particularly true of that part of the public upon whom the responsibility will largely fall for making preparations for the resumption of gold payments and for maintaining the gold standard after it has once been reestablished. For this reason your commissioners believe that a decision should be reached at an early date and that a public announcement of the decision should be made promptly. 18. If a decision is to be arrived at now, and to be announced promptly to the public, South Africa should be ready to stand by that decision regardless of what may happen to sterling during the next six months. In the interests of the public the South African Government should take whatever risk may be involved and assume full responsibility to support the carrying out of the decision. CONDITIONS FAVOR RETURN TO GOLD STANDARD 19. Conditions in South Africa at the present time are favorable to a prompt return to the gold standard, more favorable than they have been at any time since gold payments were suspended December 15, 1920. For two months and over the South African pound, as measured by the banks' telegraphic transfer rates on London; the mean between the buying rate and the selling rate, taken in connection with the dollar rate in London, has been very near gold parity, having never been below 2 per cent of gold parity since the middle of November last. At the time of writing (January 3,1925), as previously noted, it is approximately 0.86 per cent above gold parity, and if a rate so favorable as this continues long South Africa may find itself practically back on a gold standard with gold coin in circulation long before July 1. 20. Money is worth what it will buy, and, therefore, the best test of the value of money is to be found in price index numbers. Fortunately South Africa possesses, for the period 1910 to the present time, good index numbers covering wholesale prices of some 188 different commodities. The experiences of the year 1924 improved the situation generally throughout the world as a result of settlements growing out of the Dawes committee report, and the declared policy of Great Britain to carry out the recommendations of the Cunliffe committee are all encouraging signs of a speedy return to gold parity. Your commissioners hope and expect to see sterling at par with gold by July 1 next. In that contingency the situation in South Africa would, be practically the same whether she should now decide to tie up with sterling or to tie up with gold. 16. But, while expecting sterling to return to gold parity within the next six months, your commissioners would not feel justified in basing their recommendations on the assumption that such a return will take place. They recall that the dollar-sterling rate, after advancing from the low figure of 3.56 (July 29, 1921) almost continuously to the high figure of 4.72 (February 21, 1923), an advance of 323^ per cent in about 19 months and after the public had largely made up LOW SOUTH AFRICAN PRICE LEVEL its mind that sterling was to return soon to a gold basis, suddenly turned around and declined from 4.72 These index numbers show that the wholesale price (February 21, 1923) to 4.28 (November 17, 1923), a level here (excluding the price of gold) is lower in reladecline of 934 per cent in nine months. tion to the price level immediately preceding the 174 FEDERAL RESERVE BULLETIN European war than is the price level in any other country of the world for which we have comparable statistics. The following table shows the wholesale price index numbers for the latest month of 1924 for which figures are available for 20 different countries. The countries are arranged in the numerical order according to which their currencies, as evinced by their respective price levels, have been deflated toward their pre-war value: South Africa, 133 (October); Egypt, 148 (September); United States, 149 (September); Canada, 154 (September); Netherlands, 159 (September); Switzerland, 160 (October); Australia, 162 (September); Sweden, 163 (September); United Kingdom (Board of Trade), 167 (September); United Kingdom (" Statist"), 166 (September); Dutch East Indies, 174 (July); British India, 179 (September); New Zealand, 181 (August); Spain, 184 (September); Japan, 206 (September); Denmark, 234 (September); Norway, 275 (September); France, 486 (September); Belgium, 550 (September); Italy, 580 (September); Czechoslovakia, 997 (September). 21. South Africa, it will be noted, heads the list. As measured by her price index numbers, South Africa is to-day deflated more, in comparison with the situation immediately preceding the war, than gold standard countries like the United States or than countries whose exchanges have been for some time practically at par with gold, like Canada and the Netherlands. The best evidence available, therefore, seems to show that South Africa's currency is already deflated, not only to the gold standard level, but probably somewhat below. In this connection it is significant that the South African wholesale price index number rose from 125 for July, 1924, to 133 for October. The return to gold standard in South Africa would probably require, therefore, no more deflation. That disagreeable job has already been done during the last four and a half years. 22. It has been claimed that South Africa's price level immediately preceding the European war was abnormally high in comparison with the years just before when compared with other countries. Your commissioners have made comparisons of the index numbers of South Africa for the years 1910 to 1913 with those of a number of other countries, and do not find that the evidence supports its claim. In this connection it should be added that Mr. C. W. Cousins, who was director of the Bureau of Census and Statistics of South Africa for the seven years ending 1924, stated in his testimony that he did not believe that the year 1913 was abnormal in this respect in South Africa when compared with other countries. STRONG RESERVES OF SOUTH AFRICAN BANKS 23. A third favorable factor is South Africa's present strong gold position. The reserve bank at the time of writing is carrying the large gold reserve of £10,775,746, representing 64 per cent of its outstanding notes and deposits combined. The two principal commercial banks in South Africa are holding heavy sterling balances in London. The Pretoria branch of the Royal Mint was opened in January, 1923, and began issuing silver coin in June of that year. It has a capacity for coining 12,000,000 sovereigns a year and, with a few additions to plant and equipment, could increase that capacity to 24,000,000 sovereigns. South Africa can, therefore, now replenish her supply of gold coins at short notice MARCH, 1925 by simply diverting a small stream from her annual outflow of gold—an outflow which is now back to practically pre-war volume—to her local mint. She no longer needs to wait until gold can be coined in London and shipped to her shores, and, being the premier gold-producing country of the world—producing about three-fifths of the total world's annual product—she can tap the supply at its source, and no country, by embargoes or otherwise, can prevent her from getting promptly all that she is willing to pay for. 24. The fact that the year 1924 has been a successful year for the gold mines, and that the agricultural prospects at the present time in South Africa are excellent, are both favorable to an easy return to the gold standard. 25. If, on the other hand, South Africa should now decide to tie up to sterling, and if sterling should depreciate as a result of inflation in Great Britain, South Africa would be practically compelled to follow sterling down, no matter how low it should go or how long it should continue to decline and then later to follow it back to gold parity if it should come back in harmony with the declared policy of Great Britain, as expressed in the Cunliffe committee's report. This would mean that South Africa would be compelled to undergo again all the evils of inflation and subsequently again to go through all the evils of deflation. Her experiences during the long inflation period y culminating about the middle of 1920, and her subsequent four years and more of deflation experiences, are too recent to make necessary here any long description of the hardships of inflation and deflation. It is perhaps sufficient to recall that a widely fluctuating monetary unit brings a spirit of uncertainty into all business transactions, encourages dangerous speculation, and, with blind injustice, robs one class of people in the community for the benefit of another. When the currency is depreciating and the price level is, therefore, rising, it is the creditor who isrobbed for the benefit of the debtor, the bondholder for the benefit of the stockholder, the laborer for the benefit of the capitalist or the consumer, the insurance-policy holder, the savings-bank depositor, and the pensioner for the benefit of stockholders and mortgagors. When the currency is depreciating, the cost of living usually advances more rapidly than wages, with resulting hardships to wage earners and the labor discontent that usually results from inflationary movements. The French have a saying: "The guillotine follows the paper-money press; the two machines are complimentary one to the other." m When, on the other hand, the currency is appreciating in value and prices are falling, namely, during periods of deflation, the debtor suffers for the benefit of the creditor, the stockholder for the benefit of the bondholder, the farmer or the home buyer with a mortgage on his place for the benefit of the money lender, the employer and the capitalist for the benefit of the laborer. When the currency is appreciating, wages usually lag behind the cost of living on the decline, with the result that employers find themselves under economic pressure to reduce wages, as the prices of their products are declining, and also to discharge employees. Such reductions and threatened unemployment are usually resisted by laboring men, with resulting labor discontent and strikes and labor troubles during inflation, and labor troubles during deflation are the rule. 26. Both inflation and deflation have their bright spots, but the predominating color of both is black. MARCH, 1925 FEDERAL RESERVE BULLETIN Within the last 10 years most countries of the world have experienced it, and the world now struggles for monetary stability. Any government which has the choice of two monetary policies and deliberately chooses the one which appears to be the more likely to lead to inflation and subsequent deflation assumes an enormous responsibility to its people. 27. Gold itself, unfortunately, is not highly stable in value, although, since the end of the postwar golddeflation period, the middle of 1921, the value of gold has been reasonably stable. The wholesale index numbers of the Bureau of Labor Statistics in the United States, a country which has been on the gold basis throughout this period, have been as follows: 1921, 147; 1922, 149; 1923, 154; 1924 (10 months), 149. PAPER-MONEY STANDARD LESS SATISFACTORY THAN GOLD STANDARD 28. The world's experiences with paper-money standards up to the present time have been much less satisfactory than with the gold standard. Managed paper-money standards have proved to be more susceptible to manipulate than is a gold standard and more likely to vary in value under the pressure of political forces. In saying this, your commissioners do not overlook the reasonable stability of the British price level during the past three years. 29. Under present conditions it seems to us that a gold standard is much more likely to be reasonably stable in value during the next few years than is any managed paper-money standard. This statement includes sterling in case Great Britain should be unable or unwilling to hold sterling at gold parity now that parity, as measured by exchange rates, has been practically attained after years of effort to carry through the Cunliffe Committee's plan. 30. Your commissioners, therefore, believe that the wise and conservative action for South Africa to take at this time is to clinch gold parity while it is here and to that end to announce to the public, at the earliest possible moment, the intention of the Government to let existing legislation stand and to return definitely to the gold standard on July 1 next. AD\ ANTAGES TO SOUTH AFRICA OF RETURN TO GOLD STANDARD 31. The advantages, briefly summarized, are as follows, and we believe that South Africa will obtain these advantages by tying up her monetary unit with gold, a commodity the supply of which on the world's market is so large and the demand for which is so universal that manipulation of its value is always difficult and is destined to be increasingly difficult as the world continues its present rapid return to the gold basis. (a) A greater stability in the value of her monetary unit—namely, in its purchasing power, both internal and external—than she would probably obtain by tying up her sterling in case sterling does not very soon return permanently to gold parity. (b) Greater stability in interest rates and a lower level of real interest rates—namely, interest rates measured in purchasing power, because the risks and uncertainties incident to an unstable currency are, at least in part, compensated for by variations in the nominal interest rate and the greater the market's estimate of the risk the higher will be the charge it will make under the guise of interest to cover the risk. 33405—25 5 175 (c) Stability of exchange with gold standard countries which are continually increasing in number and in which a large proportion of South Africa's exports (e.g., gold and diamonds) find their consumers' market, the market which is most influential in determining the ultimate demand for these products and, therefore, in determining the price which South Africa will receive. (d) Greater confidence abroad in South Africa and resulting encouragement to the investment of foreign capital here. Conservative capital seeks markets where the prospects of currency stability are good and will prefer, for some years to come, countries on the gold standard to countries with managed paper standards. (e) Greater confidence of labor which, we have been told, widely believes that it has been taken advantage of by the introduction of inconvertible paper money in South Africa, and which has more confidence that it is "getting a square deal" when it is paid in gold or in paper convertible into gold on demand than when it is paid in inconvertible paper. (/) Money, which, in the denominations of 10s. and £1 will be more convenient for many people, particularly laboring people, than are notes, and which will also be much more sanitary. (g) A benefit to the gold industry in South Africa through encouraging, by example, the return of other countries to the gold standard. We have frequently heard abroad statements to the effect that "If South Africa, the largest gold-producing country in the world, can not or will not return to the gold standard, how can our country be expected to do so?" POSSIBLE DISADVANTAGES 32. In mentioning the advantages of a return to the gold standard, your commissioners are not blind to certain very real disadvantages that South Africa will suffer if she breaks entirely with sterling and if sterling should fluctuate for some time rather widely in terms of gold. Any alteration in a country's monetary standard, no matter how desirable it may be as a longrun policy, is bound to affect some interests adversely over considerable periods of time and many interests adversely during a brief transitional period. South Africa will be no exception to this rule if sterling should again depreciate substantially. In the judgment of your commissioners the greatest disadvantage that South Africa is in danger of suffering is that incident to a more variable exchange rate than she has had. in the past with Great Britain, the country with which she carries on the major part of her foreign trade. While not wishing to belittle this disadvantage, your commissioners would call attention to the fact that there are certain offsetting factors and that, estimating the disadvantages and the advantages that are likely to result from a fluctuating exchange, the following fundamental principles should always be taken inta account: (a) There is no permanent advantage to the exporter or permanent disadvantage to the importer in a high rate of exchange, and, likewise, there is no permanent advantage to the importer or permanent disadvantage to the exporter in a low rate of exchange. Neither party gained, for example, and neither party lost prior to the European war, in the trade between France and Germany by reason of the fact that the gold value of the franc was about 20 per cent lower than the gold value of the mark. Prices and wages in both countries 176 FEDERAL RESERVE BULLETIN had long been adjusted to, these differences in the gold value of their respective monetary units. It is not a question, therefore, of high rates of exchange or low rates, but of changing rates. Whatever advantages and disadvantages occur result only from rising rates of exchange and falling rates of exchange. These advantages and disadvantages are at best temporary in character, continuing only during the period of the lag in the adjustment of prices, wages, and exchange rates to a new equilibrium level, and these readjustments are effected to a very large degree in most countries usually within a few months' time. The evidence available to us here seems to show that this conclusion applies to South Africa. Whatever benefits the exporter or importer receives from these temporary maladjustments between exchange rates, prices, and wages, he is soon compelled by the forces of competition to pass on to others. In order that the exporter might benefit continuously, it would be necessary to have a monetary unit that was continually declining in value in comparison with the unit of the country to which the bulk of the exports were being sent. No sane person would advocate a permanent monetary policy of the kind in order to benefit the export trade. (6) Every movement of the exchange that benefits the exporter per contra harms the importer, and every movement that benefits the importer harms the exporter. Inasmuch as most concerns in South Africa that produce heavily for export are required to import from abroad supplies and equipment gains on the one side from a given movement in exchange are likely to be offset completely or largely by losses on the other side. Taking into account both visible and invisible items of trade, a country's exports and imports must be equal. So that, taking a long-run view of the situation, what a country gains on the side of exports by a fluctuating exchange it is likely to lose on the side of imports and vice versa. If South Africa should now return to the gold standard, and if gold should continue reasonably stable in value, as it has during the past three years, and if sterling should depreciate rapidly for a time and then turn around and come back to gold parity, the South African exporter would suffer while the decline was in process, and, for a few months after bottom should have been reached, because the prices he would presumably realize in Great Britain for his exports would probably not rise as rapidly as the value of sterling would decline in terms of the South African pound. During this period the South African importer would benefit, for the amount of sterling his South African pound would buy would probably be increasing more rapidly than would the prices in Great Britain of the goods he was purchasing; but if the declared policy of Great Britain, as embodied in the Cunliffe Committee report, was still to be carried out the depreciation of sterling would need to be followed by a subsequent appreciation, and during the period of the appreciation the South African exporter would benefit and the South African importer would suffer because prices would probably not go down in Great Britain as rapidly as the price of sterling in terms of South African pounds—i. e., sterling exchange rate in South Africa would rise. MARCH, 1925 making forward exchange contracts. An exporter, for example, who is buying wool now for shipment, say, 60 days hence, which he has already sold in London for £10,000, and who does not wish to assume the risk of a decline in the exchange between now and the date on which he is to sell his export bill to the bank, namely, does not wish to gamble on exchange, goes to his banker and tells him that he will have £10,000 sterling on demand wool bills to sell 60 days or so hence, and he asks the banker to quote him now a rate at which the bank will agree to buy these bills when they shall be presented 60 days later. The banker quotes him a rate, and he accepts it. Now, no matter what happens to the exchange rate during the next 60 days the wool exporter is safe. If the rate goes down he does not lose, and if it goes up he does not gain. He is a wool exporter and knows wool, but he does not know the intricacies of exchange. He wisely sticks to his last and lets the banker, whose business it is to deal in exchanges, assume the risk of what will happen to exchange during the next 60 days. The wool exporter, of course, must pay the banker a small compensation in one form or another for rendering him this service. At about the same time, we will say, for illustration, a merchant, who is contemplating the importation of machinery from Great Britain that will cost £10,000 sterling and which must be paid for 60 days hence by a demand sterling draft for £10,000, likewise does not want to run the risk of exchange fluctuations between the time he has ordered his machinery and the date for making payment. He, likewise, explains his situation to his banker, and that banker now agrees to sell him a demand draft 60 days hence for £10,000 sterling at a certain rate. The importer now knows what to count upon, not only what he must pay for his machinery in sterling, but also what he must pay for his sterling in South African pounds in terms of which he has contracted to sell his machinery or will sell it. If, during the next 60 days, the exchange rate rises, the importer of the machinery does not lose, and if it falls he does not gain. He likewise has shifted the risk of exchange to a banker whose business it is to deal in such risks. But the banker, meanwhile, has not assumed any appreciable risk—he has hedged. The sterling that will be paid to the credit of his London account out of the proceeds of the wool bill which he will receive 60 days hence will provide the funds in London out of which the draft will be paid which he must deliver to the machinery importer 60 days hence. The bank's profits come from the margin between its buying rate and its selling rate. If the bank believes that sterling will go down in the near future, it may sell more sterling futures than it buys—namely, oversell—and if it believes that sterling will rise in the near future it may buy more sterling futures than it sells—namely, overbuy. But, in either of these cases, it is speculation. The conservative banker tries to keep his forward contracts for purchases covered by forward contracts for sales, and thereby limits his profits to interest, commission, and the margin between his buying and selling rates. RESERVE BANK TO ENCOURAGE FORWARD EXCHANGE TRANSACTIONS 33. Your commissioners have been surprised to learn that the making of forward contracts in exchange is almost unknown in South Africa, and they believe that (c) The risks incident to a fluctuating exchange can the introduction of this practice would be highly debe to a large extent avoided, and in most important sirable in any event and particularly so if South Africa countries are so avoided by the simple expedients of returns to the gold standard, independently of Great UTILITY OF FOKWARD EXCHANGE CONTRACTS MARCH, 11)25 FEDERAL RESERVE BULLETIN Britain, and if sterling exchange rates prove to be unstable in the future. The reserve bank might well render valuable assistance by encouraging the introduction of the use of forward exchange contracts, both by making such contracts directly with the public and by assisting the commercial banks in getting cover at times when the exchange operations in the two directions are not reasonably well balanced. In this connection the reserve bank might be aided by the Government through a timely distribution of Government transfers. 34. Before leaving this subject of the disadvantages of an unstable exchange with the country with which you are carrying on your principal business, it should be noted that there are very few stable international exchanges in the world to-day and that most countries, including Great Britain, the United States, France, Germany, Holland, and Italy, are carrying on the principal part of their foreign trade with countries with which they have unstable exchanges. One important reason why this is possible without greater inconvenience is the widespread use of forward exchange contracts. EFFECT OF GOLD STANDARD ON PUBLIC BORROWING 35. Another disadvantage in South Africa's breaking with sterling that is of sufficient importance to demand brief discussion is the disadvantage of her doing her public borrowing in a market having a monetary standard different from her own. It is argued that South Africa's political, commercial, and financial ties are chiefly with Great Britain; that she must borrow frequently for public purposes, and that London is the natural market for her to borrow in. London knows South African conditions better than does any other great money market and for this reason will presumably give her better terms than she could obtain elsewhere. If then it is argued South Africa should return to the gold standard while sterling should continue to be an inconvertible paper money standard, South Africa might suffer a serious handicap in borrowing in London. Let us assume, for example, that, at the time South Africa returns to the gold standard the banks buying exchange rate here for sterling telegraphic transfer is 95, that that rate has persisted for several months, and that prices and wages have been so adjusted that this rate represents approximately the purchasing power parity between South Africa and Great Britain. Under such conditions if South Africa borrows £10,000,000 sterling in London on bonds maturing in 20 years at 5 per cent interest, payable semiannually, she would receive either £10,000,000 sterling in London or £9.500,000 South African pounds here but since by hypothesis £95 here would have the same purchasing power and therefore the same value as £100 would have in London, it would make no difference to South Africa whether the proceeds of the loan were transferred to the Government here in British goods or in African money or goods. There would be a nominal difference of £500,000, but no real difference. If gold should remain stable in value during the period of the loan, she would be able to purchase £10,000,000 sterling of the loan and sterling should remain at 95. The loan would cost South Africa 5 per cent because, at the maturity of the loan she would be able to purchase £10,000,000 sterling for the redemption of the bonds at the price of £9,500,000 South African. But if sterling should advance to gold parity by the time the loan matured South Africa would be required to pay back the equivalent of £10,000,000 South African 177 whereas she received only £9,500,000 South African, or its equivalent. In addition to this, she would have paid most of her interest during the period of the loan in a more valuable monetary unit than the one she received so that the loan would cost her about 5.4 per cent in addition to this interest, an agio item (exchange premium). 36. If, however, at the time that South Africa borrowed the £10,000,000 sterling there was a strong prosDect that sterling would appreciate to gold parity within a short time and if, as a consequence of this prospect, foreigners were buying sterling securities heavily as a speculation, the interest rate on long-time loans would probably be considerably lower in London than, say, in a gold standard money market like New York, because, in dollar loans, there would be no such expectation of a substantial exchange profit* The nominal rate of interest, therefore, would be lower, and should be lower for sterling loans in England than for dollar loans in New York by an amount representing the market's estimate of the value of this prospect for an approximately 5 per cent rise in the value of sterling during the life of the loan. If such a rise were practically certain within the 20 years the loan was to run, a London sterling rate of interest of 5 per cent would be approximately equivalent to a New York dollar rate of interest of 5.4 per cent (exclusive of the agio in the annual interest payments). On the other hand, if South Africa, by borrowing sterling, should put herself in a position to lose by a rise in sterling during the life of the loan, she would also put herself in a position to gain should sterling decline during the life of the loan. 37. Another compensating factor is the probability that South Africa's credit standing abroad would be improved by the fact that South Africa had stabilized her currency on a gold basis. 38. After all is said, however, there is no denying the claim that it is a risky policy for any country to borrow heavily in another country which has a monetary standard different from its own when that standard is a managed paper-money standard. 39. While such conditions continue, South Africa would do well, in the judgment of your commissioners, to reduce her public borrowing to the minimum, and to do such borrowing as may be necessary, as far as possible, on a gold basis either at home or abroad. SOUTH AFRICA CAPABLE OF MAINTAINING GOLD STANDARD 40. A few witnesses have made much of the claim that South Africa is not in a position to maintain the gold standard independently of Great Britain. Your commissioners have no anxiety on this point, and they are confident that, unless this country has recourse to a policy of currency and credit inflation, she will have no difficulty in maintaining gold payments after they have once been resumed. South Africa successfully maintained the gold standard for many decades prior to the European war, und your commissioners see nothing new in the present situation of a character to prevent her maintaining it successfully in the future. In fact there are certain new elements in the situation which should strengthen her position. The recent establishment in Pretoria of a branch of the Royal Mint will enable South Africa to mint sovereigns here, and by so doing to meet her needs for specie more promptly than in the past. Then, too, the new reserve bank, through its centralization of the country's bank reserves, its liberal powers of note issue, its rediscount functions, and its authority to operate in the open market, is in a position to exercise a conserving influence 178 FEDERAL RESERVE BULLETIN on the South African money market and to check any dangerous credit expansion that may seem to threaten the gold standard. 41. South Africa is now producing practically as much gold per annum as she produced before the war, and is producing a substantially larger percentage of the world's total production of gold than she did in 1913. On the other hand, only a small part of the world is now on the gold standard as compared with pre-war years, and therefore exercising much of a monetary demand on South Africa's product. The United States, which now holds about four and a half milliards of dollars of monetary gold, or nearly half of the world's total supply, has much more gold than it needs for maintaining a stable gold standard under present conditions, and could probably release upward of two milliard dollars of her present supply without deflation or danger to her gold standard. That large amount is practically impounded awaiting the day when the world will want it back for the restoration of the gold standard. The United States is a free gold market, and will undoubtedly let this gold go out freely to any country that wishes it and is willing to pay the market price. The danger, therefore, that the world will want South Africa's 12 to 14 million pounds of gold specie so much as to be willing to pay more for it than South Africa is willing to pay in order to enjoy the advantages of the gold standard is very remote. 42. Gold, like any other commodity, seeks the best market—in other words, goes to the highest bidder. It has been our experience that gold when it leaves any gold-standard country in undue quantities is usually pushed out by paper money and deposit currency inflation at home, not drawn out by newly created demands from abroad. Whenever a country inflates its currency and circulating credit, it makes its currency relatively redundant at home and, therefore, relatively cheap. Its money, therefore, seeks the better markets which are abroad. The outflow of currency takes the form of an exportation of gold since the country's paper money and silver money can not be used abroad. As gold specie goes out, the currency is contracted and money at home becomes increasingly scarce. Bank reserves decline, banks curtail their loans, discount rates tend upward, and prices tend downward, particularly the prices of the more sensitive commodities; commodity imports are retarded, while exchange rates are high and commodity exports are stimulated; exchange rates finally recede from the gold-export point, and gold stops going out because it has become more valuable as money at home than it is abroad. But if the country refuses to let these restricting influences operate and keeps pumping more paper money into circulation or expanding its deposits credit through excessive loans to take the place of the gold going out,, the drain of gold will, of course, continue until the gold is all gone and the gold standard is broken down. Any rapid depletion of the country's gold reserve under such circumstances will weaken public confidence in the currency' and by so doing will cause runs on the gold reserve, thus accelerating the run of its depletion. Unless, however, the gold is being pushed out of the country by inflation, there is no more reason, why a country's currency should starve because of an undue exportation of its gold specie than that its people should starve because of an undue exportation of its mealies. Under ordinary circumstances an outflow of specie is simply a proof that the supply of money at home is relatively redundant and the outflow is merely part of the machinery by which the excessive supply is MARCH, 1925 drained off and the gold standard maintained through the adjustment of the amount of money in circulation to the changing trade demands. FUNCTIONING OF RESERVE BANK UNDER NEW REGIME 43. This brings your commissioners to their last problem: What action should South Africa take to strengthen her position for returning to the gold standard on July 1 next and for maintaining that standard after it has been once restored? 44. In this connection, the principal suggestions your commissioners have to make relate to the functions of the reserve bank. 45. The act creating the reserve bank was assented to on August 16, 1920—namely, shortly after the time when the postwar currency and credit inflation in South Africa, as well as of Great Britain, the United States, and many other countries was at its maximum, and just as the long period of the after-war world deflation was setting in. Most of the reserve banks' history, therefore, until recently has been during the period of South Africa's deflation, a deflation that was necessary if the country was to return to the gold basis without reducing the gold content of its sovereign. A period of deflation is no time for a newly organized bank to extend its business by low rates and liberal credits either to the banks or to the public. The long period of deflation, however, is now apparently over, and with the prospective return of South Africa to the gold standard in the near future the time is opportune for considering the question of the proper functioning of the reserve bank under the new order of things. DIRECT OPERATIONS IN MONEY MARKET RECOMMENDED 46. In the judgment of your commissioners a country like South Africa, with only three commercial banks, one of which is small, does not offer an adequate field of operation for a reserve bank that is exclusively, or almost exclusively, a banker's bank. A central bank possessing a monopoly of the bank-note issuing privilege, and holding in its vaults the legal reserve money of other banks in any country, would be a quasi public institution "affected with a great public interest." The first duty of such a bank is to serve7 the public. This it does through conserving the mone} " market by preventing undue credit expansion or undue credit contraction by maintaining the monetary standard through regulating the supply of currency to the varying demands of trade and through assuring the public as far as possible equitable rates of discount and exchange. To perform these functions properly, a central bank must be ready at any time to operate in the open market in order by so doing to make its rates effective, and thereby enforce its policy. Otherwise the commercial banks, so long as they did not need to call upon the central bank for aid, might refuse to follow its leadership, and so prevent it from discharging its duties to the public to some extent. Therefore open-market operations directly with the public are absolutely necessary, even by a reserve bank if it is to perform its functions properly. 47. A second reason why a central bank should have reasonable powers of dealing directly with the public is to enable it to earn sufficient to cover its expenses, build up a reasonable reserve, and to pay adequate dividends on its capital during normal times when the market is outside the bank—in other words, when the market conditions are such that the commercial banks are making no demand upon the reserve bank for MARCH, 1925 advances. A central bank, whose existence is desirable in the interest of public welfare, should be self-supporting. Self-preservation is Heaven's first law for such a bank, as it is for an individual. This means that it should be in a position to earn a moderate income at all times. If, however, it is to be always strong, and its assets are to be highly liquid so that it may be always prepared to meet emergency demands, such earning assets as it may hold in normal times should consist wholly of high-grade liquid paper, the bulk of which should be self-liquidating, commercial paper of short maturities. 48. In order, therefore, that the reserve bank may function so as to perform effectively the duties which the public imposes upon it, and that it may be self-supporting, your commissioners believe that it should operate in the open market in future much more actively than it has in the past. For this purpose its present statutory powers are broad and nearly adequate, but your commissioners believe that, in view of the limited amount of highgrade, short-time commercial paper now available in the South African market, there should be some extension of the bank's power to make advances. SUGGESTED CHANGES IN RESERVE BANK LAW The following suggestions requiring minor changes in the present law are therefore made: (1) That the bank be authorized to lend money to the public or to the banks for periods not exceeding 120 days on bills or on one-name promissory notes secured by warehouse receipts against staple commodities fully insured and possessing broad and active markets to an amount in each case not exceeding 75 per cent of the value of such commodities at current market prices. The granting of this authority would require some modifications in South Africa's present laws regarding warehouse receipts. Bills and notes so secured play an important role in the portfolios of the central banks in many other countries, and your commissioners see no reason why they should not be held, under proper restrictions as to their character, by the Reserve Bank of South Africa. (2) That the bank be authorized to lend directly to other banks on the promissory notes of the said banks with maturities not exceeding 15 days secured by any collateral properly indorsed that it is legal for the bank to rediscount. Your commissioners believe further that the reserve bank might safely be authorized to accept, as collateral for such short-time loans, Union Government securities or securities of a local governmental authority of the Union, and that such collateral securities might safely be made to include such governmental securities as have maturities exceeding six months to an amount which, when added to the amounts of such governmental securities with maturities exceeding six months, owned by the reserve bank and mentioned in the succeeding paragraph of this report, shall not exceed the total amount of the reserve bank's paid-in and unimpaired capital. (3) That the reserve bank should be permitted to invest in Union Government securities and/or securities of a local authority in the Union, with maturities exceeding six months an amount which, when added to the amount of such governmental securities held as collateral for advances of 15 days or less, mentioned in the preceding paragraph of this report, shall not exceed the total amount of the reserve bank's paid-in and unimpaired capital. 179 FEDERAL RESERVE BULLETIN (4) That the limit of the usance for bills, notes and other commercial paper discountable by the reserve bank at the time such discount is made be extended from 90 days to 120 days. (Article 13 of the reserve bank act.) Your commissioners are informed that there is considerable high-grade 120-day commercial paper in the Union, and they see no reason why, in meeting the need for extending the field of operations of the reserve bank this paper should not be made eligible for discount and/or rediscount by the reserve bank. GOLD BALANCES (5) Article 17 (par. 2) of the reserve bank act provides that "the bank may, with the consent of the Treasury, hold gold balances outside the Union in the custody of its own branches or agencies or deposited in other banks earmarked for the bank's account to an amount not exceeding one-fourth of the total reserve requirements." This apparently prevents the bank, no matter how much its gold reserves may exceed the 40 per cent normal minimum required by law to be held against its outstanding notes and its deposits, from holding more than one-fourth of this amount in the form of earmarked gold abroad. Your commissioners recommend that the last proviso of the above article be amended by deleting its last phrase, beginning with the words "to an amount," and substituting in place thereof the following: "Provided that the gold held in the Union does not fall below 75 per cent of the normal legal reserve requirements." A corresponding alteration should be made in article 23 of the act. The bank should not be restricted by law as to the physical location of assets in the form of gold coin or bullion which it owns in excess of legal requirements. Conditions might arise in which there would be a distinct advantage to the bank to convert earning assets located abroad into earmarked gold abroad, and the bank should be free to do so whenever its interests seemed so to require. 49. The following administrative changes are also suggested for the purpose of enabling the reserve bank t© function more effectively: (1) That in order to afford the bank broader facilities for enabling it to earn profits sufficient to pay its expenses and, more importantly, to enable it to exercise a stronger control over the money market, it should be encouraged to invest in the treasury bills of the Union Government, having maturities of not greater than 90 days, and that to this end the Union Government should again issue such 90-day treasury bills and cooperate with the reserve bank and with the other banks in every way possible to create in South Africa a broad and active market for such bills. PROPOSED DEVELOPMENT OF AN ACCEPTANCE MARKET (2) That the present campaign to further the wider use of trade acceptances in lieu of open accounts in the Union should be encouraged, and that to this end it is desirable that merchants should give preferential terms to purchasers who are willing to accept such bills in lieu of obtained credit on open account. That commercial banks should give rates that are more preferential than those now prevailing to merchants who obtain their advances from the banks by discounting such bills as compared with merchants who borrow from the banks on current account, viz, overdrafts, or on one-name promissory notes, and 180 FEDERAL, RESERVE BULLETIN that the reserve bank give substantially preferential discount and rediscount rates on trade acceptances. (3) That the Government should look forward to the time when it will use the reserve bank as the chief depository of Government funds, and should gradually increase the proportion of its funds that are kept on deposit in the reserve bank. If a commercial bank needs the use of Government funds, it should obtain them by loans or rediscounts from the reserve bank, not by Government deposits. The reserve bank is in a better position than is the Government to measure such needs and to control such advances. In lieu of the interest which it now receives on its funds deposited in commercial banks, the Government would receive increased returns from its participation in the profits of the reserve bank. KESERVE BANK BRANCHES. (4) The reserve bank should open branches at early dates in the principal cities of the Union, and a branch in London. 50. A return to the gold standard will render useless article 32 of the reserve bank act, which has always been rather ineffective. This article provides that no person shall make a charge for receiving or cashing any bank note or gold certificate issued in the Union, and no person may sell or purchase any bank note or gold certificate issued in the Union, or any coin current in the Union for an amount exceeding its face value, and any person acting in contravention of this section shall be guilty of an offense and liable on conviction to a fine not exceeding £500, or to imprisonment for a period not exceeding two years or to both such fine and imprisonment. It is, therefore, recommended that this article be repealed. RESTORATION OF FREE GOLD MARKET 51. With the return of the Union to the gold standard the present gold certificates will no longer be necessary, and as they tend to replace reserve bank notes in the country's circulation your commissioners recommend that they cease to be issued and that those now outstanding be promptly retired after July 1. 52. The effective functioning of the gold standard requires that all restrictions on the free movement of gold coin and bullion into and out of the Union, and all restrictions on the melting of gold coin be withdrawn, and your commissioners therefore recommend that this be done and that the market for gold in South Africa be made an absolutely free market. MARCH, 1925 member-bank acceptance liabilities to a level higher than in the two preceding years. The following table compares the volume of member-bank acceptances reported on corresponding dates in 1922 and 1923: MEMBER-BANK ACCEPTANCES OUTSTANDING ON CALL DATES, 1922-1924 [In millions of dollars] Date Amount 1922 Mar. 10 June 30 317 321 Dec. 29 400 Date Amount Date 421 365 318 426 1924 Mar. 31 June 30 Oct. 10 Dec. 31 1923 Apr. 3 June 30 Sept. 1 4 . . . . Dec. 31 Amount An analysis of these figures, by Federal reserve districts, indicates the geographic distribution of member-bank acceptances. From 50 to 65 per cent of all member-bank acceptances during the last six years were executed by banks in the New York Federal reserve district, and this proportion has tended to increase in more recent years. The volume of acceptances in most of the other districts has fluctuated considerably during the six years. In 1921 acceptances declined rapidly m all the districts, and in nearly all there has been some recovery since that time. The following table shows the volume of memberbank acceptances outstanding in each district on December 31, 1918, 1922, 1923, and 1924, the proportion that the amount in 1924 was of the amount in 1918, and the percentage distribution of the 1924 amount by Federal reserve districts: VOLUME OF MEMBER BANK ACCEPTANCES OUTSTANDING AT THE END OF 1918, 1922, 1923, AND 1924 [Amounts in millions of dollars] End of— BANKERS' ACCEPTANCES, 1923-1924 Unusually heavy exports of agricultural commodities in the autumn of 1924 were reflected in a considerable growth in the volume of outstanding acceptance credit. The total amount at the end of the year has been estimated by the American Acceptance Council at $821,000,000, the largest amount since the closing months of 1919. Condition reports for all member banks on December 31, 1924, show a total liability for acceptances executed for customers of $498,000,000, compared with $357,000,000 on October 10. This growth, largely seasonal in character, brought the total 413 305 357 498 Federal reserve district Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas . San Francisco Total _.. Volume in 1924 as percentage of volume in 1918 Percentage distribution by Federal reserve districts of acceptances in 1924 1918 1922 1923 1924 61.5 246.8 20.9 21.0 13.9 15.2 50.6 22.0 5.9 2.0 4.2 16.6 480.6 57.8 238.9 14.3 4.8 8.8 14.1 34.1 2.2 2.8 .8 3.7 17.9 400.2 45.6 264.5 14.1 6.9 9.9 18.9 33.6 4.1 6.2 1.2 3.5 17.8 426.3 60.0 317.2 19.4 8.7 14.1 17.2 37.1 .9 3.1 97.5 128.5 93.3 41.6 101.4 113.2 73.3 4.1 53.4 12.1 63.7 3.9 1.7 2.8 3.5 7.5 .2 .6 4.1 15.9 497.7 97.6 95.8 103.6 3.2 s 100.0 MARCH, 1925 It will be observed that in the eastern districts, both north and south, and in the San Francisco and Dallas districts the volume of member-bank acceptances at the end of 1924 was about as large as or larger than in 1918, that in the Middle West there was a marked decline in member-bank acceptances, and in the Kansas City district member banks reported no liability on acceptances at the end of 1924. Changes in the volume of acceptances in the different districts may be due in part to changes in the volume of foreign trade of the various geographical areas and in part to changes in methods of financing this trade. The close relation between acceptances executed and the movement of commodities which enter into foreign trade may be seen in the Atlanta and Richmond districts, in which sharp peaks in acceptance figures are shown in the December reports each year, reflecting the financing of cotton exports. Similar seasonal increases appeared in earlier years in the Dallas and St. Louis figures, but acceptance liabilities of member banks in the St. Louis district have declined over the last six years to less than $1,000,000. The proportion of the acceptance business done by member banks in the New York district shows a marked increase for the six-year period. Among the factors influencing the total volume of bankers' acceptances executed in this country the most important is the volume of foreign trade. The late autumn and early winter, when export trade is at the maximum, and the spring, when imports are in largest volume, are the periods 01 the year when the largest volume of acceptances is reported by member banks. The volume of acceptance business apparently is influenced about equally by changes in the volume of exports and of imports, although the classification of acceptances bought by Federal reserve banks indicates that more than half of them (58 per cent xin 1921, 56 per cent in 1922, 64 per cent in 1923 ) are based on imports. It is not possible to determine what proportion of our foreign trade is financed by the use of member-bank acceptance credit, but the volume of foreign trade per month is generally about twice as large as the volume of member-bank acceptances outstanding. Comparisons of these figures are inconclusive, however, because of the absence of statistics of maturity of the acceptances. If the bills were all of 30-day maturity, for example, and so arranged as to mature in regular succession, the monthly volume of trade financed by acceptances would be represented by the actual voli Average holdings at the end of each month. 181 FEDERAL RESERVE BULLETIN ume of acceptances outstanding at a given time. Actually the maturities of acceptances vary widely, and the average of those outstanding is probably much longer than 30 days. For mis reason it is certain that the ratio of memberbank acceptances outstanding to the volume of foreign trade overstates the proportion of trade financed through such acceptances. On the other hand, there is a volume of acceptances, estimated at different times at from 20 to 40 per cent of the total outstanding, that is executed by banks not members of the Federal reserve system. At the close of 1924, when member bank acceptances totaled $498,000,000, the total volume of acceptances has been estimated at $821,000,000. Although there is a close relationship between the volume of acceptance credit and foreign trade, a considerable part of outstanding acceptances are based upon domestic transactions, as is seen in the table below. This is evidenced by the fact that of the bills held by Federal reserve banks on December 31, 1924, 24 per cent were based on domestic transactions. Of these bills the larger part are based on goods held in warehouses, and they are in many cases related to the export business and show the same character of seasonal fluctuations as do acceptances based on imports or exports. The Acceptance Council estimates that of the acceptances outstanding at the end of 1924 35 per cent were based on imports, 37 per cent on exports, 20 per cent on goods in warehouses, 5 per cent on other domestic transactions, and 3 per cent were for the purpose of creating dollar exchange. FEDERAL RESERVE BANKS' HOLDINGS OF BANKERS' ACCEPTANCES PURCHASED IN OPEN MARKET [Amounts in thousands of dollars] Date June Dec. June Dec. June Dec. 30, 1922. 30, 1922 30, 1923 30, 1923 30, 1924 31, 1924 Foreign 124,142 195,921 160,117 241,077 28,784 284,620 Dollar Domestic exchange 31,655 65,280 37,115 90,445 6,790 94, 556 4,535 9,743 7,833 20,452 Total 160,332 270,944 205,065 351,974 36,499 925 6,882 i 386,873 Proportion of domestic to total (per cent) 19.7 24.1 18.1 25.7 18.6 24.4 i Contains $815 all other. It will be noted that at the close of each year, when the volume of outstanding acceptances has been largest, the proportion of Federal reserve bank holdings of acceptances based on domestic transactions has also been larger than in the summer months. During recent months the acceptance holdings of the Federal reserve banks increased considerably, 182 FEDEKAL, RESERVE BULLETIN" reflecting the larger volume of outstanding acceptances and the seasonal demand for reserve bank credit. A large part of the total acceptances purchased by the reserve banks arose out of the financing of export and import trade with many countries, covering principally the exportation of cotton and grains and the im- MARCH, 1925 portation of coffee, sugar, silk, hides, and wool. With this large volume of acceptances in the market the seasonal tightening of money rates resulted during the last quarter of the year in heavy offerings of bills to the reserve banks, with a consequent growth of acceptance holdings by these banks. LAW DEPARTMENT State laws relating to branch banking. „ The following digest of State laws relating to branch banking, which was prepared by the counsel's office of the Federal Reserve Board with the assistance of the counsel to the various Federal reserve banks, shows the status of branch banking legislation in the various States at the close of the year 1924. It contains a digest of only such laws as relate to branches established within the United States and does not cover laws relating to branches established in foreign countries. ALABAMA Branches prohibited.—"From and after the passage of this act no bank or any officer, agent, or director thereof shall be permitted to establish a branch or office for the transaction of the banking business other than at its principal place of business." (Banking Laws of Alabama, 1922, sec. 28; Session Laws, 1911, p. 77, sec. 28.) Own stock in other banks.—"No bank shall subscribe for or own exceeding 10 per cent of the capital stock of any other bank or invest or have invested an amount exceeding in the aggregate 25 per cent of its own paid-in capital stock in the capital stock of any other bank or banks." (Banking Laws of Alabama. 1922, sec. 29; Session Laws, 1911, p. 77, sec. 29.) town, or city as to which the application has been • made." (Sec. 13 of act 113 of the act of 1913, as amended by the act approved Mar. 23, 1923; Acts of Arkansas, 1923, p. 519.) CALIFORNIA Branches permitted.—"No bank in this State, or any officer or director thereof, shall hereafter open or keep an office other than its principal place of business, without first having obtained the written approval of the superintendent of banks to the opening of such branch office, which written approval may be given or withheld in his discretion, and shall not be given by him until he has ascertained to his satisfaction that the public convenience and advantage will be promoted by the opening of such branch office." (Bank Act, 1923, sec. 9.) Capital requirements.—For each branch office located in the place of principal business of the parent bank the paid-in capital, in cash, must exceed by $25,000 the capital required for a bank in that place. For each branch office of a bank other than an exclusive trust company located in any place in the State other than the place of principal business of the parent bank, the amount of the paid-in capital, in cash, of the parent bank must exceed the amount required by law in the sum required for an independent bank organized in that locality, exclusive of the capital required for a trust department. For each branch of an exclusive trust company established or maintained in a place other than the place of principal business of the parent bank, the paid-in capital in cash of the parent bank must exceed the sum otherwise required by law in the sum of $25,000. (Bank Act of California, 1923, sec. 9.) There are also provisions regulating the discontinuance of a branch, fees for the opening of a branch, penalties for the violation of the law covering establishment of branches, advertising by branch banks, publishing of reports of condition by such banks, and the establishment of branches by banks located in a city which is annexed by or consolidated with a city of a class requiring a larger capitalization. (Bank Act of California, 1923, sees. 9, 28, 132a, 23, 60, and 82.) Branches permitted.—The law provides that branches may be established if the consent of the superintendent of banks is obtained. He may give his consent if the public convenience and advantage will be promoted by the opening of such branch and if it has the capital required by the act and may withhold such consent if he is satisfied that the opening of such branch office is undesirable or inexpedient. (Banking Laws of 1922, p. 17, sec. 21; Special Session Laws of 1922, ch. 31, sec. 21, p. 131.) Capital requirements.—"Before any such branch office is authorized the corporation proposing to estabCOLORADO lish the same shall have a paid-in capital and surplus of not less than fifty thousand dollars, plus fifteen Branches prohibited.—"Every bank shall be conthousand dollars of additional capital and surplus for ducted at a single place of business, and no branch each and every branch so authorized." (Banking Laws thereof shall be maintained elsewhere." (Banking 1922, p. 17, sec. 21; Special Session Laws 1922, ch. 31, Laws, 1923, sec. 48; Compiled Laws, 1921, sec. 2703.) sec. 21, p. 131.) ARKANSAS CONNECTICUT Branches prohibited.—"The return of which said copy (certificate of incorporation) so endorsed and the filing of the same for record with the county clerk of the county in which the said institution is located, shall authorize it to proceed with its business, but with only one office for the transaction thereof in only the one Branches prohibited.—"No State bank or trust company shall make any loan or discount on a pledge of its own stock, and no State bank, trust company, mutual savings bank, or building and loan association shall establish any branch office or agency thereof, or employ any agent or person to make loans or discounts at any 183 FEDERAL RESERVE BULLETIN MARCH,, 1925 other place than its banking house." (Banking Laws, municipalities, and districts in which they are located, 1923, p. 16, sec. 3920; General Statutes of 1918, sec. and the parent bank shall be relieved of taxation to the 3920 as amended by ch. 10, Bank Act 1923, p. 3481.) extent of the capital set aside for the exclusive use of such branches." (Banking Laws, 1920, sec. 3; Bank DELAWAKE Act 1919, art. 1, sec. 3.) Branches authorized.—"No bank or trust company IDAHO shall open any branch office or place of business in this State unless authorized so to do by the certificate of Branches prohibited.—"No banking corporation or the State bank commissioner." (Banking Laws, 1921, trust company shall maintain any branch bank, receive p. 15, sec. 4; Laws of Delaware, 1921, p. 288, ch. 103, deposits or pay checks, except over the counter of and sec. 4.) in its own banking house. And, Provided, That nothCapital requirements.—"No such certificate shall be ing in this section shall prohibit ordinary clearing-house issued by the said commissioner, unless satisfied that transactions between banks. the applicant has a paid-in capital stock to an amount "Corporations created under the terms of this chapequivalent to at least twenty-five thousand dollars for ter shall not be authorized to engage in the business each office or place of business then established by said at more than one place, which shall be designated in * corporation in this State and for the branch sought to their charters." (Banking Laws 1919, sec. 5244; Idaho be established, and a surplus to an amount equivalent Comp. Stat. 1919, sec. 5244.) to at least twenty-five thousand dollars for each office ILLINOIS or place of business then established by said corporation." (Banking Laws, 1921, p. 15, sec. 4; Laws of Branches prohibited.—By act approved June 23, Delaware, 1921, p. 288, ch. 103, sec. 4.) 1923, the Illinois Legislature prohibited branch bankMust be authorized by charter.—"Nothing in this ing, subject to the approval by the people at general section contained shall be deemed to confer on any election in 1924; and at the general election the act corporation the power to establish branches not ex- was approved. (Smith-Hurd Illinois Revised Statpressly authorized by its charter." (Banking Laws, utes, p. 108.) 1921, p. 15, sec. 4; Laws of Delaware, 1921, p. 288, INDIANA ch. 103, sec. 4.) Branches prohibited.—"That it shall be unlawful for person, firm, or corporation engaged in the business Branches prohibited.—"That the place of business any operating a State bank, private bank, savings bank, of each banking company shall be in the city or town of or loan, trust, or safe deposit company to open or specified in its charter, and the usual business of any establish branch bank or branch office: Provided, such banking company shall be transacted at an office That the aprovisions of this section shall not apply to or banking house located in the city or town so specified branch banks or branch offices for which charters have and not elsewhere." (Banking Laws, 1921, sec. 4139; heretofore been granted." (Banking Laws, 1921, p. Fla. Rev. Gen. Stats. 1920, sec. 4139.) 124; Session Laws, 1921, ch. 141, p. 367.) GEOKGIA Branches authorized.—"Banks whose capital has been fully paid in and is unimpaired may establish branches in the cities in which they are located or elsewhere, after having first obtained the written approval of the superintendent of banks, which approval may be given or withheld by the superintendent in his discretion, and shall not be given until he shall have ascertained to his satisfaction that the public convenience and advantage will be promoted by the opening of such branch." (Banking Laws, 1920, sec. 3; Bank Act 1919, art. 1, sec. 3.) Operation.—The law provides for the appointment of officers for the management and operation of each branch. (Banking Laws, 1920, sec. 3; Bank Act 1919, art. 1, sec. 3.) Capital.—-"At the time of the establishment of any branch the board of directors of the parent bank shall set aside for the exclusive use of said branch such proportion of its capital or surplus as may be required by the superintendent of banks; in no event less than is required for the organization of a bank in the city, town, or village in which the branch shall be located: Provided, That the parent bank shall not by such assignment of a portion of its capital reduce the capital to an amount less than is required for the organization of a bank in the city, town, or village in which said parent bank is located, nor shall the parent bank by such assignment of a portion of its surplus reduce the surplus account to an amount less than twenty (20) per cent of its capital." (Banking Laws, 1920, sec. 3; Bank Act 1919, art. 1, sec. 3.) Taxation.—"Branch banks shall be taxed on the capital set aside to their exclusive use in the counties, 33405—25 6 No provision.—There is no specific provision covering branches in the laws of Iowa. KANSAS No provision.—There is no specific provision in the laws of Kansas concerning branch banks. KENTUCKY No provision.—There is no specific provision in the laws of Kentucky regarding the establishment of branches. The Court of Appeals of Kentucky has held, however, that in the absence of such a provision it is not within the power of a State bank to establish a branch bank, though it may have agents to receive and forward money to the bank or transact other necessary business. (Bruner v. Citizens Bank of Shelbyville, 120 S. W. 345.) LOUISIANA Branches authorized.—"Every increase or decrease, modification, alteration, or addition to the capital or of the number of the shares, shall be submitted to a general meeting of the stockholders, held after thirty days' notice by publication and by mail, and shall be approved by two-thirds of the amount of the capital stock; and shall be executed, recorded, and published as provided for the original articles, which shall provide for the location in the parish of domicile of any banking association of not more than two branch offices. Provided, that no banking association or savings bank with capital stock of less than $50,000 may locate or 184 FEDERAL, RESERVE BULLETIN operate branch offices; but this provision shall not apply to existing branch offices." (Banking Laws, 1923, p. 5, sec. 7; Wolf's Const, and Stats, of La., 1920, p. 116, sec. 7.) Certificate of bank examiner.—No branch may be opened until a certificate of authority has been obtained from the State bank examiner. (Banking Laws, 1923, p. 6, sec. 8; Wolf's Const, and Stats, of La., 1920, p. 116, sec. 8.) Trust companies, sayings banks, and safe deposit companies.—"Any savings, safe deposit, or trust and savings bank may have one or more offices of discount and. deposit within the limits of the municipality or parish in which the said bank is located; and provided further, that whenever any such banks shall have taken advantage of the provisions of this act and section, and shall have established one or more offices of discount and deposit within the limits of said municipality or parish, no future political or legal subdivision of said municipality or parish shall have the effect of. in anywise affecting the right of such banks aforesaid to continue the existence, maintenance, and operation of any such offices already established." (Banking Laws, 1923, p. 28, sec. 7; Wolf's Const, and Stats, of La., 1920, p. 112, sec. 7.) MARCH, 1925 any such corporation to maintain not more than one branch office, which shall be in the town where its main office is located. "No such corporation shall maintain a branch office except as provided in this and the two following sections, but the restrictions of this section shall not extend to branch offices authorized prior to April twenty-ninth, nineteen hundred and two. (Trust Company Laws, 1923, p. 26, sec. 45; Gen. Laws, 1921, ch. 172, sec. 45.) "Any office of a trust company the business, of which has been taken over under section forty-four by, or any office of a national bank purchased by or merged in, a trust company located in the same town, may be maintained as a branch office of such corporation, if in the opinion of the commissioner public convenience will be served thereby/' (Trust Company Laws, 1923, p. 26, sec. 46; Gen. Laws, 1921, ch. 172, sec. 46.) MICHIGAN *'Industrial" bank may establish branches.—"To establish branch offices or places of business within the crty or village in which its principal office is located, but not elsewhere." (Banking Laws, 1923, p. 48, sec. 4; Compiled Michigan Laws, Supplement, 1922, sec. 8032 (6).) MAINE There is no specific provision in the laws of Michigan regard to the establishment of branches by other "Trust and banking company" branches author- in ized.—"No trust company now or hereafter organized banks. MINNESOTA shall establish a branch or agency until it shall have received a warrant so to do from the bank commisBranches prohibited.—"No bank or trust company sioner, who shall issue such warrant only when satisfied that public convenience and advantage will be organized under the laws of this State shall maintain promoted by the establishment of such branch or a branch bank or receive deposits or pay checks within agency, * * * no trust company shall be per- this State except at its own banking house, and the mitted to establish a branch or agency except in its superintendent of banks shall take possession of and own or an adjoining county." (Maine Laws, 1923, liquidate the business and affairs of any State bank or trust company violating the provisions of this act in ch. 144, sec. 88; Banking Laws, 1923, sec. 88.) the manner prescribed by law for the liquidation of Capital requirements.—Banks are required to have insolvent State banks and trust companies." (Banking a capital varying with the size of the place in which it Laws, 1923, p. 31; Session Laws, 1923, ch. 170, p. 194.) is located. Banks with branches must have the capital required of a bank located in a place with a population MISSISSIPPI equal to the aggregate population of the place in which the parent bank is located and the population of the Branch offices in same city.—"The creation or places in which its branches are located. (Banking organization of any branch bank in this State shall be Laws, 1923, sees. 69 and 88; Maine Laws, 1923, ch. 144, and the same is prohibited and forbidden, and no branch sees. 69 and 88.) bank shall be hereafter established in this State, and MARYLAND no parent bank chartered under the laws of this State establish any branch bank either within or without Branch banks and trust companies authorized.—The shallState: Provided, however, That when the superlaws of Maryland provide for the capital of branches the intendent of banks shall believe the convenience and established by banks and trust companies and, there- interest the public will be served he may permit fore, impliedly authorize the establishment of such banks in of cities of not less than ten thousand population branches. The capital required for a bank or trust to establish branch offices within the corporate limits company depends upon the size of the place in which the city where the bank is domiciled, and such offices such bank or trust company is located, and a bank or of shall not be considered branch banks within the meantrust company hereafter establishing a branch outside ing of section 261, code of Mississippi of 1906. But an of the city, town, or village in which it is located must established bank or branch bank may with the consent add to its capital stock for each branch so established of the superintendent of banks be removed from one a sum equal to the amount of capital which would be municipality to any other (Banking required of a bank (as distinguished from a trust Laws passed in 1924, p. 14,municipality." House Bill 574; Laws of company) located in the place in which such branch is Miss. 1924, p. 226.) established. No bank or trust company shall establish requirements.—"Every parent bank operata branch in the city, town, or village in which the parent ingCapital one or more branch banks shall set apart and bank or trust company is located unless such parent devote from its capital a sum of not less than ten bank or trust company has the capital required by the dollars for the exclusive use of each of said act. (Bagby's Annotated Code, 1911, art. 11, sees. 20 thousand branch banks in its business, and the amount of the and 42 as amended by the'acts of 1924, ch. 266.) capital of the parent bank employed by each branch bank shall never at any time be less than the said MASSACHUSETTS amount of ten thousand dollars." (Banking Laws, Branches of trust companies authorized.—" The 1920, sec.*3522; IHemingway's Annotated1'Miss. Code, board of bank incorporation may authorize in writing 1917, sec. 3522.) MARCH, 1925 185 FEDERAL RESERVE MISSOURI NEW YORK Branch banks authorized.—"No bank, or any officer Branch banks prohibited.—" Provided, however, that no bank shall maintain in this State a branch or director thereof, shall transact its usual business of bank or receive deposits or pay checks except in its banking at any place other than its principal place of own banking house." (Banking Laws, 1919, sec. business except that a bank in a city which has a popu11737; Revised Stat. of Mo. 1919, sec. 11737, p. 3674.) lation of more than fifty thousand may open and Branch trust companies prohibited.—" Provided, occupy in such city one or more branch offices for the however, that no trust company shall maintain in receipt and payment of deposits and for making loans this State a branch trust company or receive deposits and discounts to customers of such respective branch or pay checks except in its own banking house." offices only, provided that before any such branch or (Banking Laws, 1919, sec. 11799; Revised Stat. of branches shall be opened or occupied: " 1 . The superintendent shall have given his written Mo. 1919 sec. 11799, p. 3702.) approval, as provided in section fifty-one of this chapter; MONTANA "2. The actual paid-in capital of such bank shall No provision concerning branches.—There is no exceed by the sum of one hundred thousand dollars specific provision concerning the establishment of the amount required by section one hundred of this article for each branch opened since the twenty-seventh branch banks in the laws of Montana. day of April, nineteen hundred and eight; and by the sum of fifty thousand dollars for each branch opened NEBRASKA previous to said date and hereafter maintained." No provision concerning branches.—There is no (Morgan & Parkers N. Y. Banking Laws, 1923, sec. specific provision in the laws of Nebraska in regard 110.) Branch trust companies.—"No trust company or to the establishment of branch banks. any officer or director thereof, shall transact its usual business at any place other than its principal place of business, except that a trust company may open and Branches prohibited.—"No bank in this State shall occupy in the city in which its principal place of hereafter open or maintain any branch bank or office." business is located one or more branch offices, provided (Banking Laws,. 1915, sec. 8; Rev. Laws Nev. 1912, that before any such branch or branches shall be opened or occupied: sec. 623.) " 1 . The superintendent shall have given his written "Bank" defined.—"The words 'corporation,' 'banking corporation,' 'bank/ 'trust company/ or 'banker/ approval, as provided in section fifty-one of this as used in this act, shall refer to and include banks, chapter; "2. The actual paid-in capital of such trust comsavings banks, and trust companies, individuals, firms, associations, and corporations of any character pany shall exceed by the sum of one hundred thousand conducting the business of receiving money on deposit dollars the amount required by section one hundred or otherwise carrying on a banking or trust company and eighty of this article for each branch opened." business, except as herein specially provided." (Bank- (Morgan & Parkers Banking Law, 1923, sec. 195.) ing Laws, 1915, sec. 75; Rev. Laws Nev. 1912, sec. Provision is also made in the law requiring the 690.) approval of the superintendent of banks before a branch may be opened. (Morgan & Parkers Banking NEW HAMPSHIRE Law, 1923, sec. 51.) No provision concerning branches.—There is no speNORTH CAROLINA cific provision in the laws of New Hampshire in regard to the establishment of branch banks. Branches authorized.—"Any bank doing business under this act may establish branches in the cities in NEW JERSEY which they are located, or elsewhere, after having first No provision concerning branches.—There is now no obtained the written approval of the Corporation specific provision in the laws of New Jersey with regard Commission, which approval may be given or withheld to the establishment of branch banks or trust compa- by the Corporation Commission, in its discretion, and nies. It appears that a law enacted in 1913 authorized shall not be given until it shall have ascertained to trust companies to establish branches, but that law its satisfaction that the public convenience and adwas repealed in 1915. Trust companies, however, were vantage will be promoted by the opening of such not prohibited by the latter statute from establishing branch." (Banking Laws, 1921, sec. 43.) Capital requirements.—"Provided, that the Corpobranches, and it appears that ;there is now no law either authorizing or prohibiting the establishment of branches ration Commission shall not authorize the establishby trust companies. (Laws of 1913, ch. 140; Laws of ment of any branch, the paid-in capital stock of whose parent bank is not sufficient in an amount to provide 1915, ch. 274.) for the capital of at least fifteen thousand dollars for NEW MEXICO the parent bank, and at least twenty thousand dollars Branches prohibited.—"Every bank shall be con- for each branch which it is proposed to establish in ducted at a single place of business, and no branch cities or towns of three thousand population or less; thereof shall be maintained elsewhere; provided, how- nor less than thirty thousand dollars in cities and towns ever, that nothing herein contained shall be construed whose population exceeds three thousand, but does not to prohibit any mercantile corporation which maintains exceed ten thousand; nor less than fifty thousand a banking department in accordance with the provi- dollars in cities and towns whose population exceeds sions of this act, from receiving deposits and buying ten thousand, but does not exceed twenty-five thouand selling exchange at any of its branch stores." sand; nor less than one hundred thousand dollars in (Banking Laws 1923, sec. 47; Session Laws 1915, ch. cities and towns whose population exceeds twenty-five thousand. All banks operating branches prior to the 67, sec. 47.) i86 MARCH, 192& FEDERAL RESERVE BTJLLETTH principal place of business is located, one or more suboffices or subagencies, for the purpose only, however, of receiving and paying out moneys; and provided, that a full report of the operations of each day is made at the close thereof to the principal place of business, and that the assets of the bank in its suboffices or subagencies are transferred to the main office of the bank on or before the close of each business day. This act NORTH DAKOTA does not authorize the establishment or maintenance No provision concerning branches.—There is no of branch offices or agencies for the transaction of the specific provision in the laws of North Dakota in general business of any corporation formed under the regard to the establishment of branches. act to which this is a supplement." (Act July 28, 1917; Laws 1917, p. 1235.) OHIO passage of this act shall, within a time limit to be prescribed by the Corporation Commission, cause said branch bank to conform to the provisions of this section." (Banking Laws, 1921, sec. 43.) The law also contains requirements for the proper management of the branches. (Banking Laws, 1921, sec. 43.) Branches authorized.—"No branch bank shall be established until the consent and the approval of the superintendent of banks has been first obtained, and no bank shall establish a branch bank in any place other than that designated in its articles of incorporation, except in a city or village contiguous thereto. If such consent and approval is refused, an appeal may be taken therefrom in the same manner as is provided in section 45 of this act." (Banking Laws, 1923, sec. 710-73.) Fees for each branch.—" * * * provided, that all banks which operate a branch bank or branch banks in addition to the charges above to be paid, shall pay at the time prescribed above the sum of fifty dollars for each branch bank operated by it * * *." (Banking Laws, 1923, sec. 710-17.) RHODE ISLAND Branches authorized.—"Any bank or trust company may establish a branch or branches within this State at any other place than its principal place of business upon obtaining the consent of the board of bank incorporation thereto." Detailed provision is also made for obtaining the consent of the Board of Bank Incorporation to establish branches. (Banking Laws, 1922, ch. 229, sec. 9; Gen. Laws of R. I. 1909, ch. 229, sec. 9.) SOUTH CAROLINA Branches authorized by implication.—"All banks or institutions engaged in the banking business in this State that maintain or operate a branch bank or an office for business other than its regular or home office, shall pause to be published statements of the assets and OKLAHOMA liabilities of such branch bank or office in the county No provision concerning branches.—There is no wherein such branch bank or office is located, the same specific provision in the laws of Oklahoma in regard to as other banks or banking institutions." (Banking the establishment of branch banks. Laws, 1923, sec. 78; Code of 1922, sec. 3989). Provision is also made for examination of branch banks. (Code of 1922, sees. 3984 and 3988.) Branches prohibited.—"No bank in this State, or SOUTH DAKOTA any officer or director thereof, shall open or maintain any branch bank or receive deposits or pay checks No provision covering branches.—There is no specific other than at its principal place of business: Provided, provision in the laws of South Dakota in regard to the That this provision shall not apply to branch banks establishment of branch banks. now existent in compliance with the provisions of section 4591 of Lord's Oregon Laws; provided further, TENNESSEE that every such branch bank shall hereafter in every Branches authorized by implication.—"Any prinrespect be governed by and comply with the provisions of this act to the same extent as other State banks now cipal bank must pay out the notes made payable at its organized and doing business in this State." (Banking branches, but such bank notes shall by law, be also payLaws, 1921, sec. 36; sec. 6211, Oreg. Laws as amended able at the counter of the principal bank." (Shannon's Code, 1917, sec. 3224.) by ch. 294, p. 546, Gen. Laws 1921.) Branches authorized if national banks are permitted to establish branches.—"Provided, further, that whenever national banks, operating under acts of Congress, are given the privilege or authority to open and maintain branch banks in this State, the superintendent of banks may authorize banks organized and existing under the laws of this State to open and maintain branch banks on similar terms as are granted to national banks, and the State banking board is hereby given power and authority to prescribe rules and regulations from time to time for the opening and maintaining of said branch banks." (Banking Laws, 1921, sec. 36; sec. 6211, Oreg. Laws as amended by ch. 294, p. 546, Gen. Laws, 1921.) PENNSYLVANIA Suboffices permitted but branches prohibited.— Branches prohibited.—"No such corporation [bank] shall maintain any branch bank, receive deposits, or pay checks, except over the counter of and in its own banking house, except where such corporation is a county or State depository, in any county other than that of its home, or is a county depository and is not located at the county seat; and provided, that nothing in this article shall prohibit ordinary clearing house transactions between banks. Corporations created under the terms of this title shall not be authorized to engage in business at more than one place which shall be designated in their charters." (Banking Laws, 1923, sec. 94; Rev. Civil Stats, p. 104, art. 379.) Branches are prohibited by the Texas Constitution. (Const. Act XVI, sec. 16.) "Section 1. Be it enacted, etc., That any bank of discount and deposit already incorporated, or hereafter Branches prohibited.—"The business of every bankformed * * * is hereby authorized to establish and ing institution shall be conducted only at its banking maintain in the city, borough, or township in which its house, and no bank in this State or any loan, trust, or 187 FEDERAL RESERVE BULLETIN MARCH, 1925 guaranty company or trust company conducting a cashier of the bank is sufficient." It is understood, banking business, or any officer, director, or agent there- however, that the Commissioner of Banks and Bankof, shall open, establish, or maintain any branch bank ing does not permit the operation of branches. (Barnes or office, and shall receive deposits and pay checks 1923 Code, ch. 54, sees. 2, 23, 76, 78a (5) and ch. 50, only at its banking house: Provided, That all branch sec. 37.) WISCONSIN banks or offices in operation at the time of the approval of this chapter shall be closed and discontinued within one year from the date this chapter goes into effect. Branches prohibited.—"No bank shall establish "Any bank or officer thereof violating any of the more than one office of deposit and discount or estabprovisions of this section is guilty of a misdemeanor." lish branch offices or branch banks, provided that this (Banking Laws, 1923, sec. 1005; Comp. Laws Utah, prohibition shall not apply to any branch office or bank 1917, sec. 1005. established prior to May 14, 1909." (Banking Laws, VERMONT 1922, p. 36, sec. 61 (f); Wis. Stat. 1921, ch. 555, sec. 2024-9.) Branch trust companies prohibited.—" Nor shall such No provision covering branches.—There is no specific provision in the laws of Vermont in regard to the estab- corporation establish more than one office of deposit lishment of branch banks. nor establish nor maintain branches." (Banking Laws, 1921, p. 83, sec. 164; Wis. Stat. 1921, sec. 2024-77 N.) VIRGINIA Branches authorized.—"No bank or trust company heretofore or hereafter incorporated under the laws of this State shall be authorized to engage in business in more than in one place, except that, in its discretion, the State corporation commission may authorize banks having a paid-up and unimpaired capital of twenty-five thousand dollars or over to establish branches. This section, however, shall not apply to branch banks already established. But any branch bank heretofore or hereafter established shall not be operated or advertised under any other name than that of the identical name of the home bank. Any bank or trust company violating the provisions of this section shall be liable to a fine of one thousand dollars, to be imposed and judgment entered therefor by the State corporation commission, and enforced by its process." (Banking Laws, 1922, sec. 4101; Code of 1919, sec. 4101.) Taxation of branches.—Provision is made for local taxation of branches in the places in which they are established. (Banking Laws, 1922, sec. 4102; Code of 1919, sec. 4102.) WYOMING Branches permitted by implication.—"It shall be lawful for any number of persons, not less than five in any case, to associate themselves together and form companies for the purpose of carrying on a general banking, savings bank, and loan and trust business in such place or places in this State as shall be designated in their articles of association, subject, however, to the contingencies, restrictions, conditions, and liabilities prescribed in this chapter. The persons uniting to form such association, shall execute and acknowledge, according to law, a certificate of articles of association, which shall specifically state: "Fourth. The place or places where its offices shall be located, and its operations are to be carried on." (Banking Laws, 1921, sec. 5135; Comp. Stat. 1920, sec. 5135.) State Banks and Trust Companies The following list shows the State banks and trust companies which were admitted to membership in the Federal Reserve System during the month ended Branches prohibited.—" Nor shall any bank or trust February 21, 1925, on which date 1,554 State institucompany establish any branch. The practice of tions were members of the system: collecting or receiving deposits or cashing checks at any place or places other than the place where the ADMISSIONS usual business of a bank or trust company and its operations of discount and deposits are carried on shall be Capital Surpius ] held and construed to be establishing a branch." (Banking Laws, 1921, sec. 28; Session Laws, 1919, ch. 209, sec. 7.) District No. 1 Definition of branch.—"The term 'branch bank,' where used in this act, means any office of deposit or Carroll County Trust Co., Conway, discount maintained by any bank or trust company, N . H $75,000 $15,000 $1,209,363 domestic or otherwise, other than its principal place District No. 5 of business, regardless of whether it be in the same city or locality." (Banking Laws, 1921, sec. 27; Session The Home Bank, St. Matthews, S. C. (readmitted under new Laws, 1917, ch. 80, sec. 14.) charter) 70,000 20,000 ! 564, 992 WASHINGTON WEST VIRGINIA Branches apparently authorized.—The corporation laws of West Virginia provide for the incorporation of banks of issue and circulation and of discount and deposit and for savings institutions and also provide that any corporation may have offices at any other place than at the place of its principal office; cooperative banking associations and trust companies are also made subject to the above laws. The law also provides that "If a suit against a bank of circulation be brought in a county where it has a branch, service on the president or District No. 9 Trout Creek State Bank, Trout Creek, Mich 184,578 25, 000 District No. 11 Texas State Bank & Trust Co., San Antonio, Tex.__ 300,000 I 30,000 !, 684, 343 25,000 i 5,000 120,844 District No. 12 Multnomah Commercial & Savings Bank, Multnomah, Oreg 188 FEDERAL. RESERVE BULLETIN CHANGES Capital Surplus $400,000 $150,000 Total District No. 1 First National Bank, Fall River, Mass (absorbed by B. M. C. Durfee Trust Co., Fall River, Mass., a member) District No. 6 Atlantic Exchange Bank & Trust Co., Baltimore, Md. (consolidated with Baltimore Trust Co., a member) Farmers Bank & Trust Co., St. Matthews, S. C , a nonmember (consolidated with and under title of The Home Bank, a member newly chartered) 2,000,000 2,000,000 70,000 30,000 District No. 6 Bank of Cartersville, Cartersyille, Ga. (converted into a national bank) $4,192,630 District No. 60,000 Farmers State Bank, Auburn, 111., a nonmember (absorbed by the Auburn State Bank, Auburn, 111., a member) Citizens State Bank, Wapello, Iowa, a nonmember (absorbed by the Wapello State Savings Bank, Wapello, Iowa, a member) 25,000 11,070 287, 420 25,000 6,500 321, 500 1 to 5 & 9. 1 to 9. 1 to 9. 1 to 9. 1 to 9. 1 to 9. 1 to 9. 1 to 9. 1 to 9. 1 to 7 & 9. 1 to 7 & 9. 1 to 9. 1 to 9. 1 to 9. 1 to 3, 5 to 9. 1 to 3 & 5. 1 to 9. 1 to 8. 1 to 9. 1 to 9. 5 to 8. New National Bank Charters District No. 11 Security State Bank, Cooper, Tex. (closed) _ Powers granted Name of bank First National Bank South Side National Bank & Trust Co. Labor Co-Operative National Bank. Metropolitan National Bank & Trust Co. First National Bank.__ National Bank of Smyrna... Gettysburg National Bank.. Second National Bank Farmers and Mechanics National Bank. First National Bank Third National Bank....... Greenville National Bank__ National Bank of Harrisonburg. First National Bank Holston National Bank First National Bank do Citizens National Bank ! American National Bank I Winfield National Bank ! Fort Worth National Bank.i Houlton, Me.. Newark, N. J_. 468,141 Paterson, N. J ! New York, N. Y . . . Perry, N. Y Smyrna, Del Gettysburg, Pa 34,273,440 Mechanicsburg, Pa. Phoenixville, Pa Columbus, Ohio Dayton, Ohio i 450, 000 Greenville, Pa_ Harrisonburg, Va... Portsmouth, Va Knoxville, Tenn Greenville, Ala 566, 733 Great Falls, Mont.. Anthony, Kans Hutchinson, Kans.. Winfield, Kans Fort Worth, Tex.... 60,602, 214 100,000 District No. 7 1925 (1) Trustee; (2) executor; (3) administrator; (4) registrar of stocks and bonds; (5) guardian of estates; (6) assignee; (7) receiver; (8) committee of estates of lunatics; (9) in any other fiduciary capacity in which State banks, trust companies, or other corporations which come into competition with national banks are permitted to act under the laws of the State in which the national bank is located. District No.« Metropolitan Trust Co., New York, N. Y. (converted into a national bank) 2,000,000 3,000,000 Citizens Bank of Cape Vincent, N. Y. (voluntary withdrawal) 50,000 10,000 MARCH, 100,000 420,644 The Comptroller of the Currency reports the following increases and reductions in the number and capital of national banks during the period from January 24, to February 20, 1925, inclusive: District No. 12 Bank of Jordan Valley, Jordan Valley, Oreg. (closed).. 50,000 25,000 435,227 banks Change of title—The Montclair Essex Trust Co., Montclair, N. J., has changed its title to the Montclair Trust Co. The Guardian Savings & Trust Co., Cleveland, Ohio, has changed its title to The Guardian Trust Co. Change of location.—Commercial & Savings Bank Co., Buckeye City, Ohio, name of city changed to Danville. Change of title and location.—The Stockmens State Bank, Corona, N . Mex., has changed its title to the First State Bank and its location to Estancia, N. Mex. Fiduciary Powers Granted to National Banks During the month ended February 21, 1925, the Federal Keserve Board approved applications of the national banks listed below for permission to exercise one or more of the fiduciary powers named in section 11 (k) of the Federal reserve act as amended, as follows: New charters issued.. Restored to solvency Increase of capital approved _. Aggregate of new charters, banks restored to solvency, and banks increasing capital Liquidations Reducing capital Total liquidations and reductions of capital- . Consolidations of national banks under act of Nov. 7,1918.... Aggregate increased capital for period.-. Reduction of capital owing to liquidations, etc Net increase.- _ _ Amount of capital 11 0 20 $2, 775,000 0 12,975,000 31 15,750,000 27 2 2,117,500 40,000 29 2,157,500 0 0 15,750,000 2,157,500 13,592,500 189 FEDERAL RESERVE BULLETIN MARCH, 1925 BUSINESS STATISTICS FOR THE UNITED STATES INDUSTRIAL ACTIVITY Industrial activity during January continued taking of raw silk by mills exceeded all previous the recovery which began last summer and records. Building-material industries, on the in many lines attained levels equaling or ex- whole, were seasonably less active, but the ceeding those of a year ago. The index of amount of lumber cut was larger than in any production in basic' industries, which is ad- January since 1918. Of the important industries justed for seasonal variations, advanced from automobile manufacturing has shown the great117 to 127. This figure equals the maxi- est decrease in production since last spring. mum of all time recorded for May, 1923, The output of passenger cars in January was and compares with 120 last January and about 40 per cent below the total for March, 94 for the summer months. The manu- 1924, the month of maximum production. facturing index, which is unadjusted, increased Production of rubber tires and tubes and of from 116 to 123, slightly above the level of gasoline continues to show substantial year-toJanuary, 1924. Employment has not risen year increases. Among the minerals, copper and zinc proto the same extent as production, and, although the number employed increased slightly duction was the greatest since the war years, in January, wage earnings were seasonably and lead output was the largest recorded in less, and both were smaller than a year before. the four years for which figures are available. Mineral production was particularly heavy Furthermore, bituminous coal output was in January, and the mining index at 140 has close to the largest amount ever mined in been exceeded only twice in the pre-war any month. Anthracite coal and petroleum period. The index of agricultural marketings kept the general index below its previous declined in January as is usual, but main- high point, as the output of these products tained its increase over the corresponding was not up to the levels reached in the fall of 1923. In agricultural movements receipts of month in previous years. Iron and steel has been relatively the most cotton were the largest recorded for any active of all industries, and the production January since 1920, when the crop w^as of pig iron and steel ingots in January was marketed late. Tobacco sales were also rather close to previous maximums. Textiles also large. Grain receipts were greater than during showed some increases. Active machinery last January, but have been larger in that month and employment in the woolen industry of other previous years. Vegetable shipments declined, but cotton consumption and spindle were heavy, but those of fruits were somewhat activity were the greatest since 1923, and the lighter than usual. INDEXES OF INDUSTRIAL ACTIVITY PERCENT PER CENT ]175 ( MONTHLY AVERAGE, 1919=100 ) 1751 150 150 125 100 75 50 50 • — — MANUFACTURING PRODUCTION MINERAL PRODUCTION 25 25 1919 1920 1921 1922 1923 1925 190 FEDERAL RESERVE BULLETIN MARCH, 1925 INDEX OP EMPLOYMENT IN MANUFACTURING INDUSTRIES 1 [Not adjusted for seasonal variations. MoDthly average, 1919—100] ! GenYear and month , eral index Metals and products Textiles and products ana >roup Fabrics Prodndex ucts I steel 1924 January February March April May June July August September October November December 1925 January ...; 98 99 99 97 93 90 87 87 90 91 91 93 97 98 97 92 87 85 79 81 85 89 88 92 i I 93 93 .• i I ! I ! ! ; j ; Lumber and products Car Motor build- Paper and ing vehicles and re- printpairing ing 94 98 100 100 94 89 86 79 82 86 87 85 88 118 123 124 123 119 117 113 114 115 114 114 112 103 105 107 101 90 81 76 78 80 81 80 82 95 89 111 84 i ! | 96 97 94 89 86 85 i ! ! | i 78 81 85 90 91 90 89 89 89 87 85 85 85 | | i I I I Foods Leather Stone, Toand and bacco clay, prodprod- prodand ucts ucts glass | ucts 106 106 106 105 104 i 103 | 101 101 I 104 102 101 98 97 103 | 104 105 105 101 102 102 103 105 100 i I | i I 87 87 82 79 73 74 78 81 82 81 3 80 105 106 110 115 117 115 111 110 108 109 109 108 i I ! ' Chemicals and products i 87 85 83 82 83 82 ! 82 | 86 j 81 I 87 | 87 I i I I | I i I i 78 78 78 77 74 70 67 68 71 71 72 3 73 103 1 This table contains for certain months the index numbers of employment, together with group indexes for its important industrial components The general index is a weighted average of relatives for 33 individual industries. The method of construction was described in detail and indexes for the above groups since January, 1919, were published on pages 1272-1279 of the BULLETIN for December, 1923. 2 Preliminary. 3 Revised. INDEX OF PRODUCTION IN BASIC INDUSTRIES i [Index and relatives for each industry adjusted for seasonal variations. Monthly average 1919=* 100] Food products Year and month 1924 January February March April _ May June July August September-. October November-December. . January Wheat flour 89 100 107 105 105 107 82 97 127 115 115 109 111 125 104 141 141 111 91 94 122 3 122 3 100 110 3 97 3 84 Animals slaughtered Sugar meltings Cattle i Calves 95 i 94 i 90 : 133 137 112 116 111 108 117 118 128 143 129 155 Sheep | 90 102 109 102 99 91 91 93 82 87 Lumber Hogs 119 116 132 136 124 116 141 136 132 121 122 130 130 124 127 117 104 106 105 108 120 116 128 1925 100 140 90 ; 145 Tobacco products Sole leather January. February March April. May June July August September October.. . November December January. Newsprint Cement 107 108 103 111 | 116 i 103 ! 102 j 101 ! 1*7 110 ! 104 ! 103 | 1925 68 106 239 192 187 169 172 173 193 190 186 183 187 182 Petroleum 183 189 186 189 192 187 185 190 191 185 183 182 rs 98 94 90 88 95 91 98 95 100 97 96 92 Cigarettes Manufactured tobacco 176 140 143 157 173 : 163 155 157 162 158 145 170 i 113 93 91 91 96 94 97 93 98 99 89 188 i 105 94 * This table contains for certain months the index numbers of production in basic industries which are shown in the chart at the bottom of page 151, together with the series of relatives used in constructing the index. In making the final index the relatives are adjusted to allow for seasonal fluctuations and are weighted The methods of construction were described in detail and all relatives for each series since January, 1913, were published on pages 1414-1421 of the BULLETIN for December, 1922. 2 All bituminous coal figures for 1924 revised. 3 Revised, 191 FEDERAL RESERVE BULLETIN MARCH, 1925 INDEXES OF INDUSTRIAL ACTIVITY » [No seasonal adjustment. Monthly average 1919—100] Mineral production Agricultural movements Year and month Animal LiveTotal 2 stock 2 prod- Grains ucts Cotton VegeTo2 tables Fruits bacco T o t a l Anthracite coal Bituminous coal2 Petroleum Pig iron Copper Zinc Lead Silver 1924 January February March April. May June... July August September October November December 105 96 81 77 87 87 100 121 152 189 160 143 123 101 98 97 98 95 96 90 109 123 120 132 98 101 90 129 148 165 166 127 107 100 105 121 91 120 87 54 62 67 118 218 195 230 156 120 83 41 33 34 34 19 21 38 175 278 271 3 231 120 123 138 113 119 146 137 107 165 226 136 86 90 102 92 93 178 140 148 144 163 248 157 86 238 133 75 17 20 6 2 63 127 165 148 184 138 130 128 110 114 111 113 116 124 134 122 130 108 104 110 93 106 105 106 97 106 105 92 101 135 122 106 78 83 81 86 92 109 125 108 119 179 176 189 189 196 191 194 196 189 190 179 180 118 121 136 127 103 79 70 74 81 97 99 116 132 130 129 131 130 127 129 132 126 137 136 135 126 112 122 114 121 111 109 106 104 108 109 121 114 124 134 125 137 143 138 139 146 148 145 146 111 115 121 97 123 111 95 104 116 119 119 123 1925 January 118 122 93 112 129 130 74 281 140 101 134 188 132 143 128 150 114 Manufacturing production Total Iron and steel Automobiles Leather Petro- Cement TobacLum- Paper and and and leum brick co ber printing shoes Textiles Food products lie 128 132 141 149 162 139 136 142 143 160 132 122 122 117 120 126 120 113 102 107 109 126 116 3 117 143 120 Rubber tires 1924 January - _ February March April May. . June July. August Septein ber October November December 3 108 124 196 228 237 231 193 151 163 172 178 178 141 126 105 3 111 109 105 105 98 100 97 103 102 112 114 108 117 145 141 121 104 122 123 127 122 112 97 97 104 112 123 112 116 126 131 145 122 96 75 67 87 96 123 108 106 10C 98 83 77 81 83 98 na 98 96 94 89 83 76 75 84 90 101 84 90 172 166 180 181 171 176 176 182 180 186 185 196 3 118 123 140 154 167 156 154 166 157 169 148 138 118 103 109 106 122 123 127 123 126 132 114 106 128 118 1925 January > F o r description a n d early figures see B U L L E T I N for M a r c h , 1924. 2 P r a c t i c a l l y all figures for 1924 revised. 3 Revised. 152 154 162 152 144 126 125 158 175 191 155 163 192 FEDERAL RESERVE BULLETIN MARCH, 1925 COMMODITY MOVEMENTS With this month's issue the publication in the Bulletin of detailed statistics regarding movements and stocks of commodities is discontinued. Certain figures compiled by the board's division of research and statistics will still be published in order that users of these data may continue to have comparable series of data. Information as to current figures for any of the discontinued series will be furnished upon request. January, Decem- January ber, 1924 1924 1925 Grain and Flour—Continued Revenue freight loaded and received from connections (cars loaded, 000 omitted): Classified by nature of p r o d u c t s Grain and grain products Livestock _ _ Coal Coke Forest products Merchandise, 1. c. 1 Miscellaneous _ _ _ _ _ January, Decem- January, 1925 ber, 1924 1924 Total Classified by geographical divisionsEastern Allegheny Pocahontas Southern _ Northwestern Central western Southwestern.. Grain and Flour Receipts at 17 interior centers (000 omitted): Wheat (bushels) Corn (bushels) Oats (bushels) Rye (bushels) Barley (bushels) 24,166 36,359 25,589 2,134 4,940 32,542 29,694 21,132 3,802 5,405 16.861 31,075 18,176 1,807 2,916 Total grain (bushels) •_ Flour (barrels) Total grain and flour (bushels) _ _. 93,188 2,423 104,089 92,575 2,358 103,188 70,834 1,902 79,395 Shipments at 14 interior centers (000 omitted): Wheat (bushels)... _ Corn (bushels) Oats (bushels) Rye (bushels) _ Barley (bushels). _. 19,256 11, 929 15, 089 2,822 2,840 28,846 8,289 12,135 7,449 3,632 12,244 17,579 14,829 582 2,066 51,937 3,374 60,350 3,682 47,300 3,182 67,120 76,921 61,619 47,628 I 55,772 22,928 I 14,361 64,557 i 61,038 9,270 3,424 2,928 59,785 6,832 14,788 16,652 1,828 147,310 143,886 99,885 12,841 987 1,241 1,955 2,062 27,785 904 1,912 6,116 4,591 12,794 3,213 2,327 326 1,573 19,085 2,117 41,308 2,028 20,232 1,931 28,612 50,436 28,920 Total grain (bushels) Flour (barrels) Total grain and flour (bushels) Stocks at 11 interior centers at close of month (000 omitted) : Wheat (bushels) _ Corn (bushels) Oats (bushels) _ Rye (bushels) Barley (bushels). _. Total grain (bushels) Receipts at 9 seaboard centers (000 omitted): Wheat (bushels) Corn (bushels) Oats (bushels) Rye (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) _ Rye (bushels) Barley (bushels) Total grain (bushels) 9,493 1,369 1,530 3,851 1,531 14,202 719 2,215 9,242 3,197 17,774 Wheat flour production (barrels, 000 omitted) 11,705 Tobacco sales at loose-leaf warehouses (pounds, 000 omitted): Dark belt Virginia Bright belt Virginia North Carolina _ Burley Western dark _ 7,088 7,623 12,075 9,165 29,327 16, 591 39,950 j 14,324 20,222 I 8,862 6,039 1,484 1,025 751 2,164 11,463 6,476 10,397 28,377 27,213 12,563 Total . 221 159 891 59 312 212 169 812 54 282 202 161 880 54 301 1,016 1,289 1,044 1,316 975 1,233 3,992 3,931 3,843 909 792 213 620 518 641 297 912 789 194 628 470 625 312 932 783 175 597 479 615 264 3,992 3,931 3,843 BUILDING STATISTICS January, Decem- January, ber, 1924 1925 1924 Building permits issued in 168 cities, grouped by Federal reserve districts: Number of p e r m i t s Boston (14 cities) New York (22 cities) Philadelphia (14 cities) Cleveland (12 cities) Richmond (15 cities) Atlanta (15 cities). Chicago (19 cities) St. Louis (5 cities) Minneapolis (9 cities) Kansas City (14 cities) Dallas (9 cities) San Francisco (20 cities) Total "Value of permits (dollars, 000 omitted)— Boston (14 cities) _ New York (22 cities) ._._ Philadelphia (14 cities) Cleveland (12 cities) Richmond (15 cities) Atlanta (15 cities) _ Chicago (19 cities) .._. St. Louis (5 cities) Minneapolis (9 cities) Kansas City (14 cities) Dallas (9 cities) San Francisco (20 cities) Total _ Building contracts awarded, by Federal reserve districts (dollars, 000 omitted): Boston New York _ _ Philadelphia _. Cleveland Richmond Atlanta _ Chicago St. Louis _ Minneapolis 1 _ Kansas City Dallas Total (11 districts) 1 2 1,413 8,360 1,754 2,524 2,428 2,745 1,333 5,212 1,194 2,611 2,075 2,903 6,426 1,802 660 1,545 2,177 10,797 1,629 2,968 3,023 2,753 7,793 1,690 726 1,555 1,633 8,909 1,527 481 1,243 2,335 11,620 38,735 41,519 42,096 7,737 78,341 8,719 12,919 10,828 7,233 36,546 5,703 2,417 4,648 6,257 31,464 212,812 9,991 84,679 12,666 20,080 13,740 10,187 39,168 8,607 3,404 7,490 5,794 30,909 6, 715 7,895 88, 553 11,959 22,941 109,625 18,316 32,033 21,784 24,885 36,836 14,648 5,895 7,469 15,119 25,920 101,127 17,899 44,123 23,299 27,471 51,198 22,794 5,713 6,983 12,963 309,551 339,489 1,877 District No. 10, excluding Colorado. Total, 10 districts. No figures available for Dallas district. 12,181 12,209 7,138 27,124 6,528 2,143 5,209 8,054 33, 230 222,223 20,789 107,039 18,497 22,495 27,354 26, 575 49,288 18,869 5,062 4,653 2 300,621 193 FEDERAL RESERVE BULLETIN MARCH, 1925 WHOLESALE AND RETAIL TRADE WHOLESALE TRADE IN THE UNITED STATES, BY LINES CHANGE IN CONDITION O P WHOLESALE TRADE, BY LINES AND DISTRICTS—Continued [Average monthly sales 1919—100] General index Groceries Meat 1923 October November... December... 1924 January February— March April May June July August September... October November... December... 1925 January . 80 77 80 79 81 83 83 83 93 100 78 Dry Shoes Hard- Drugs ware goods 112 90 66 117 102 90 129 111 97 98 90 81 72 70 79 102 116 104 88 77 91 90 104 108 104 96 93 93 106 111 98 99 116 110 118 114 110 105 110 108 117 128 109 109 82 44 114 CHANGE IN CONDITION OF WHOLESALE TRADE, BY LINES AND DISTRICTS Percentage change in January, 1925, with— Decem- January, ber, 1924 1924 Groceries: United States Boston district New York district Philadelphia district... Cleveland district Richmond district Atlanta district Chicago district St. Louis district Minneapolis district Kansas City districtDallas district San Francisco districtDry goods: United States New York district Philadelphia district... Cleveland district Richmond district Atlanta district Chicago district St. Louis district Minneapolis district Kansas City district—_ Dallas district San Francisco district.. Shoes: United States Boston district New York district Philadelphia district... Cleveland district Richmond district Percentage change in January, 1925, sales compared with— -2.9 -5.0 -6.5 -11.3 -7.0 -2.8 0.6 2.0 5.4 — 1.3 -0.6 7.0 8.8 1.3 8.5 -4.4 -0.1 -3.7 4.6 8.1 1.4 -3.8 -2.6 0.5 7.7 -2.2 6.9 8.6 -15.8 -21.6 36.2 8.1 11.9 44.8 -2.3 19.1 44.9 10.9 -15.6 -1.1 -22.7 -22.2 -24.7 -12.8 -20.5 -13.8 12.3 -6.3 -27.2 -13.3 -22.7 -21.4 -19.9 -30.0 -35.3 -9.3 -10.6 0.9 -14.9 -13.4 9.1 -19.1 Decem- January, ber, 1924 1924 Shoes—Continued Atlanta district Chicago district St. Louis district Minneapolis district San Francisco district . Hardware: United States New York districtPhiladelphia district.. Cleveland district Richmond district. _ Atlanta district Chicago district St. Louis district Minneapolis district Kansas City district Dallas district San Francisco district Drugs: United States... . New York district _ _. Philadelphia district Cleveland district Richmond district Atlanta district Chicago district St. Louis district . Kansas City district ._ Dallas district . H San Francisco district.. _ Furniture: Richmond district Atlanta district... St. Louis district Kansas City district-_ . _. San Francisco district Agricultural implements: United States Atlanta district _ .._ Minneapolis district Dallas district San Francisco district. . . _. Stationery: New York district Philadelphia district Atlanta district San Francisco district Automobile supplies: San Francisco district Clothing: New York district St. Louis district Machine tools: New York district-Diamonds: New York districtJewelry: New York district Philadelphia district Electrical supplies: Philadelphia district Atlanta district St. Louis district . San Francisco district -_.-.,.Millinery: Kansas City district Stoves: St. Louis district . . 20 -26.1 24.3 -26.5 13.3 -8.4 -24.2 3.7 7.9 -15.5 -10.4 -14.7 -20.0 0.2 8.9 3.9 -12.9 19.3 -19.8 -18.4 -7.8 -0.7 -2.3 -1.8 -5.2 —1.0 -8.3 5.5 -2.9 1.9 0.5 13.5 4.1 -5.7 3.9 7.6 -2.1 3.7 9.3 — 1.3 -0.6 14.3 5.6 13.0 8.2 -1.9 —1.1 7.7 0.9 —2.5 -0.1 1.1 12.2 4.2 5.8 10.8 29.2 -19.4 44 6 -15.1 —6.3 24.2 9.2 25.2 7.1 -8.0 14.3 —19.4 -6.8 56.8 21.7 28.5 17.7 83.7 6.2 7.1 3.0 3.4 —0.5 -9.7 -7.4 7.9 0.3 -3.2 -4.2 -9.0 60.3 -33.4 -0.4 54.5 -15.8 -16.3 -6.5 0.2 -54.7 -71.3 —0.6 -2.3 -29.5 -31.3 5.5 -3.3 -8.7 15.0 -3.6 4.0 17.2 -49.1 -4.1 -16.5 194 FEDERAL, RESERVE BULLETIN MARCH, 1925 RETAIL TRADE BY REPORTING LINES [Average monthly sales 1919=100] 3 II •3-a 23 S3 tn ll ll Pi 03 CO Xi o October., i November December 1923 January •2*3 Bs m 148 142 202 134 122 118 200 201 201 180 176 331 152 141 185 138 134 193 139 131 171 136 149 214 186 180 270 130 126 126 104 193 200 192 166 168 179 149 150 152 132 135 143 123 121 130 113 119 113 181 189 185 109 102 115 133 127 120 91 93 119 141 141 211 203 198 197 208 211 197 204 198 207 238 229 250 126 140 163 178 174 162 163 172 169 203 199 366 141 143 149 145 150 143 148 152 145 159 145 187 119 124 136 130 143 131 128 138 137 144 138 192 99 93 118 178 150 140 113 108 124 138 146 186 84 97 105 114 90 89 69 74 106 141 131 148 82 75 72 91 110 124 111 184 154 167 184 205 186 169 177 180 189 199 186 282 125 127 115 130 123 120 122 119 131 124 126 132 100 101 91 111 100 104 93 98 112 109 105 123 202 198 182 205 211 200 211 208 218 230 227 239 173 179 170 190 183 176 179 181 183 188 191 198 146 150 147 149 153 146 147 151 147 156 154 153 137 140 140 136 141 134 129 141 137 137 139 142 130 132 118 153 130 132 123 138 129 122 134 142 102 112 110 103 99 94 97 102 110 102 89 98 184 190 182 205 193 181 181 179 192 194 195 188 108 245 155 122 107 92 162 124 161 141 141 112 193 1924 January February March April May. June July August September October November December chains ains) Sales with seasonal adjustment Sales without seasonal adjustment 1925 244 DEPARTMENT STORE SALES, BY FEDERAL RESERVE DISTRICTS [Average monthly sales 1919=100] Number of reportinsr District firms United States Boston New York Philadelphia Cleveland Richmond- _ AtlantaChicago Minneapolis Dallas San Francisco -__.._ _ _ _._ _ . . Sales with seasonal adjustment Sales without seasonal adjustment 1925 1924 1923 1925 1923 1924 Jan. Dec. Nov. Oct. Sept. Jan. Dec. Jan. Dec. Nov. Oct. Sept. Jan. 359 109 211 141 141 119 109 202 124 132 126 124 131 125 126 24 63 22 54 23 35 63 23 21 31 113 120 105 107 93 83 113 92 92 128 215 226 213 207 214 173 219 162 171 238 140 153 153 139 137 113 154 111 115 144 137 161 144 134 137 120 136 116 126 157 115 127 109 117 106 94 133 102 114 130 120 120 110 109 94 85 112 88 85 132 210 215 203 204 195 168 209 156 158 236 126 132 119 123 113 102 133 107 106 145 135 138 133 131 124 106 140 110 105 151 128 132 118 128 117 98 139 103 100 142 124 135 126 122 120 100 123 103 107 144 127 145 134 132 124 106 139 102 114 139 133 132 125 125 114 104 132 103 99 149 132 130 130 129 113 103 134 106 97 150 Dec. DEPARTMENT STORE STOCKS, BY FEDERAL RESERVE DISTRICTS [Average monthly stocks 1919=100] District Number of reporting firms Stocks without seasonal adjustment 1925 1924 Jan. Dec. Nov. Oct. Sept. Jan Stocks with seasonal adjustment 1923 1925 Dec. Jan. 1923 Dec. Nov. I Oct. Sept. Jan, Dec. United States. 314 119 124 148 147 137 115 123 134 133 131 132 128 131 132 Boston New York Philadelphia .Cleveland Richmond Atlanta Chicago Minneapolis _. Dallas San Francisco 24 63 13 52 19 22 51 22 19 29 112 118 147 114 109 106 139 96 96 123 120 125 151 120 118 96 141 99 105 124 141 147 172 145 145 123 167 123 131 148 135 146 171 146 143 126 169 121 133 147 125 133 160 136 128 118 159 115 129 140 111 113 132 110 104 109 128 97 107 125 123 123 145 120 112 106 140 104 109 123 124 132 164 136 129 117 156 108 111 134 123 132 157 129 130 107 152 108 122 135 122 129 155 128 127 110 148 112 118 135 120 131 153 130 ; 124 112 150 I 111 ! 118 I ! 118 124 148 126 116 108 149 110 114 133 123 127 148 131 124 121 144 110 124 137 126 129 150 129 125 119 150 114 127 135 MARCH, 1925 FEDERAL RESERVE BULLETIN 195 FOREIGN BANKING AND BUSINESS CONDITIONS CONTINENTAL CENTRAL BANKS IN 1924 To the financial statistics previously published in the BULLETIN is added with this issue a condensed statement of the principal items of 20 European central banks. Of these, three—Germany, Poland, and Hungary—were organized in the course of 1924 and consequently comparisons of the current statement with that of a year ago can not be made. Furthermore, comparisons of the statement of one bank of issue with another are subject to the limitations arising from differences in the form of statements. Despite these difficulties of exact comparison, two rather general observations can be made covering banking developments in European countries during 1924—one applying to countries in which expansion of note circulation was never extensive, and the other covering countries in which note issues had reached enormous volume. In the three European countries whose exchange returned to gold parity during the year, namely, Sweden, Switzerland, and the Netherlands, there has been a material reduction in the circulation between January, 1924, and the same month of the current year. In each case this has been accompanied by a decline in gold holdings and an increase in foreign bills and balances abroad. In the case of both Sweden and the Netherlands the holdings of gold and foreign bills combined increased, while for Switzerland there has been little change. Among the countries which had previously experienced an enormous inflation of currency, but which have stabilized their exchanges, there has recently been a considerable expansion of circulation. This is true of Austria, which has possessed a stable currency since September, 1922; and it is likewise true of Russia, Poland, and Germany. This fact does not show in the statement of the Reichsbank, owing to the presence in circulation of other forms of currency than the notes of the Reichsbank. The total monetary circulation in Germany at the end of 1924 was 4,273,900,000 reichsmarks, against only 2,273,600,000 the year before. In Russia the circulation of chervontsi doubled during 1924. Such increases, extraordinary though they seem, are not of themselves indicative of currency inflation. They indicate rather that with the cessation of inflation there was an actual shortage of currency and that with the introduction of more stable monetary conditions it was necessary rapidly to make up the shortage. This expansion of circulation has not been attended by any weakness of the exchange, but it has been accompanied by a considerable rise in prices, at least in Poland and Austria, which has had the effect of bringing the gold price indexes of those countries much nearer the world level of prices. This phenomenon is discussed at some length below, under " International Price Comparisons.'7 A similar situation appears to exist in a number of other countries which recently have practically stabilized the foreign value of their currencies and whose circulation shows a moderate expansion. INTERNATIONAL PRICE COMPARISONS The movement of wholesale prices throughout the world in 1924 was in general similar to that of the United States. The price indexes of practically every country for which figures are available were higher last December than a year before, the principal exceptions being Australia, India, and Switzerland. In some countries, such as Norway and Spain, the rise was almost continuous during the year, while in a larger number the course was more nearly parallel to that of American prices. In the latter countries there was a moderate decline in the first half of the year, followed by an advance which more than made up the previous recession. When these indexes are adjusted to a common basis by allowing for the depreciation of the different currencies in terms of the dollar, it appears that in most European countries the rise in the index on a gold basis exceeded both the advance in the index calculated in the domestic currency and the rise in American prices. Usually this has been due in part to a rise in the exchange value of the currency without a corresponding decline in domestic prices. In other instances, such as Austria, which has had a stable rate throughout the year, and in Poland, where the gold zloty was introduced in May and where the rise in prices amounted to nearly 25 per cent, the advance in the gold index apparently represents a general lifting of internal prices 196 FEDERAL RESERVE BULLETIN MARCH, 1925 toward a closer adjustment with prices in other taken, for what is tabulated below as the Frankfurter Zeitung index for December recountries. As a result of these movements, the gold- cords prices as of the first day of January. price indexes of most countries were closer to But this does not explain the divergence bethat of the United States in December, 1924, tween the two indexes amounting to over 10 than they had been a year earlier. This per cent. Notwithstanding these differences in price tendency is indicated in the price movements of a number of countries shown in the table levels, as measured by index numbers, these below. In considering the data in this table indexes, when reduced to a common basis, it should be kept in mind that these indexes show a world-wide tendency to move in the are calculated by different methods and include same direction, and, with increasing stability a varying list of commodities. For this reason of exchanges, a growing tendency to fluctuate the figures, though they reflect price levels in in a manner similar to the movement of- prices different countries with a fair degree of accur- in the United States. acy, should not be used as a basis of comparing The following table is presented to show the price levels. For example, in December, 1923, price indexes of a number of European countries the price index of the Canadian Department of compared with those of the United States in Labor stood at 164, that of the Dominion December, 1923 and 1924, both in domestic Bureau of Statistics at 154, and that of the currency and on the gold basis. Federal Reserve Board for Canada at 144. OF EUROPEAN COUNTRIES COMPARED In the same month the Bureau of Labor Statis- PRICE INDEXES WITH THE UNITED STATES tics index for the United States was 151 and that of the Federal Reserve Board 163. The Domestic currency Gold basis question of whether Canada or the United States had the higher "price level" in that De- DeCountry month, therefore, depends entirely upon the Decem- Decem- Change cem- cem- Change (per (per ber, ber, 1924 ber, 1923 indexes selected for the comparison. On the cent) 1923 ber, 1924 cent) other hand, all three Canadian indexes show similar trends during the year and about the United States: Bureau of Labor same degree of change. These trends are Statistics 157 151 151 157 +4 distinctly parallel to those of the United States, Federal Reserve 163 165 165 +1 163 Board +1 and, adjusted for the exchange, the various 144 144 151 Bradstreet'si-_. P 151 +5 +5 125 143 +14 Austria 1,818,100 2,075,400 +14 Canadian indexes show about the same per- Belgium 129 146 +13 566 +4 545 140 centage rise as do the two American indexes. Denmark * 154 +10 234 +11 210 In making comparisons for other countries than England: 164 +12 146 170 +4 163 Board of Trade 152 180 +6 170 174 +14 Economist Canada and the United States, even greater 140 174 +11.5 156 Statist 168 +20 Federal Reserve allowance for differences in index numbers must 177 159 Board +7.5 177 be made. For England there are several France: Statistique G6n§rwell-known indexes, usually in agreement as to 142 +14 125 ale 507 +10 459 Federal Reserve trend, but showing wide differences in level 116 Board 126 427 451 +6 +9 since 1913. For France both the index of the Germany: Federal Statistical Federal Reserve Board and that of the Statis126 Bureau 131 +4 126 131 +4 Frankfurter Zeitique G6nerale agree in showing a rise in prices tung i 140 145 140 +3.5 145 +3.5 during the year; but reduced to a gold basis Hungary 2 122 791,500 2,309,500 + 186 154 +26 Italy: the former stands about as far from the latter Bachi 130 640 +11 143 +10 577 Milan Chamber of as the latter does from the Bureau of Labor Commerce 535 132 +10 120 +11 Statistics index for the United States. In Netherlands 154 160 +4 160 +10 146 244 156 +15 136 278 +14 the case of Germany, the Frankfurter Zeitung Norway Poland 95 118 +24 95 118 +24 176 143 +15 116 198 +12.5 index and that of the Federal statistical bureau Spain Sweden ___ 150 164 +12 147 163 +9 both indicate a slight advance; the small Switzerland l 183 170 165 170 difference might be accounted for in part by the 1 2 First of January figure. Figures for November, 1924. varying dates on which the actual prices are MARCH, 197 FEDERAL RESERVE BULLETIN 1925 FINANCIAL STATISTICS FOR PRINCIPAL FOREIGN COUNTRIES (Bank figures are for end of month, except for London clearing banks, which are daily averages) ENGLAND FRANCE [Millions of pounds sterling] [Millions of francs] January Bank of England: Issue department— Gold coin and bullion Notes issued Banking department— Gold and silver coin Bank notes.__ Government securities Other securities Public deposits Other deposits Ratio of gold and note re- j serve to deposit liabilities.. Bank notes in circulation Currency notes and certificatesNine London clearing banks: Money at call and short notice.._ Discounts and advances.. Investments.. , Total deposits Total clearings Government floating debt: Total Treasury bills. Temporary advances Index of security prices (December, 1921=100) Index number of foreign exchange value of the pounds sterling Janu- Decem- Novem- January ber ber ary Decem- Novem- January ber ber 127 146 127 146 127 146 126 146 2 22 50 74 23 107 2 18 69 104 9 166 2 23 41 82 19 112 2 19 48 70 16 105 18.4 98 281 11.5 101 296 19.3 101 285 17.5 104 280 112 1,063 296 1,653 3,771 113 1,046 303 1,656 3,448 102 1,045 307 1,628 3,317 100 1,053 346 1,674 3,467 786 631 155 846 626 220 788 624 164 827 651 176 117.5 117.5 117.4 112.2 126.5 128.7 128.1 125.4 ITALY [Millions of lire] Bank of France: I Gold reserve Silver reserve War advances to the Government Note circulation Total deposits Commercial bank loans Commercial bank deposits Clearings, daily average of Paris banks Price of 3 per cent perpetual rente 3,680 304 3,677 297 22,600 22,600 40,604 40,447 1,973 1,994 15, 342 15, 376 22,800 38,834 2,346 14, 816 14,704 3,681 305 21,200 40, 516 2,012 3,681 306 1,043 50.00 48.45 956 50.00 1,417 54.00 * Not including gold held abroad. CANADA [Millions of dollars] 1924 1923 Decem- Novem- Octo- December ber ber ber Chartered banks: Gold coin and bullion » Current loans and discounts. Money at call and short notice... Public and railway securities Note circulation Individual deposits Gold reserve against Dominion notes. Dominion note 2circulation Bank clearings Bank debits 52 1,123 315 536 166 2,166 139 262 1,709 2,825 1923 54 1,139 309 497 177 2,108 138 244 1,647 2,849 2 i Not including gold held abroad. 1924 1924 1925 1924 1925 55 1,170 269 554 173 1,708 123 240 1,772 2,963 54 1,183 291 427 180 2,040 114 249 1,574 Total for month. JAPAN [Millions of yen] Decem- Novem- October December ber ber Banks of issue: Gold reserve Total reserve _. . . Loans and discounts Note circulation for commerceNote circulation for the State L Total deposits Leading private banks: Cash Loans and discounts Due from correspondents Participations . Total deposits State note issue Index of security prices 1 Not including gold held abroad. 1,132 1,826 8,324 10,873 7,242 3,194 2,400 253.85 1,132 1,831 7,584 10,646 7,248 2,684 1,132 1,829 7,603 10,774 7,297 2,810 1,118 1,848 8,144 9,492 7,754 2,581 973 8,637 4,092 977 8,370 4,088 399 12,424 2,400 240.90 1,116 7,953 3,463 292 11,277 2,428 179.64 12,649 2,400 249.16 Bank of Japan: Reserve for notes i Loans and discounts Advances on foreign bills Note circulation Government deposits Private deposits Tokyo banks: Cash on hand Total loans Total deposits Total clearings 1925 1924 Janu- Decem- Novem- Januber ber 1,059 325 135 1,390 224 31 1,059 573 188 1,694 193 52 1,061 390 118 1,364 286 37 1,057 589 181 1,520 372 45 123 2,398 1,859 2,632 108 2,375 1,854 3.561 121 2,620 1,845 2,808 I 118 2,372 1,828 1,975 i Gold abroad, gold coin and bullion in Japan. 198 FEDERAL RESERVE BULLETIN MARCH, 1925 GERMANY LATVIA [Millions of reichsmarks] [Thousands of lats] 1924 1925 January Gold Reserves in foreign exchange. Bills of exchange and checks _ Miscellaneous assets Note circulation . _ Deposits 834 278 1,771 1,507 1,901 747 _ ._ Decem- November ber 760 253 2,064 1,654 1,941 821 695 232 2,290 1,655 1,863 704 1924 1925 October 694 231 2,340 952 1,781 709 Gold Foreign Exchange Reserve Bills Loans Note circulation Government deposits Other deposits January January December ber 23, 587 40, 876 46, 860 50, 831 27, 897 80, 335 45, 428 23,600 42,984 44, 798 48, 660 30, 727 77, 289 44, 256 23, 604 48, 286 43, 289 44, 789 26,000 78, 529 50, 211 16, 770 49,927 20, 985 21, 974 23,000 39, 991 43, 785 30, 62, 36, 92, 31, 779 258 681 982 349 30, 713 61, 241 38, 097 89, 344 40,126 16, 827 53, 583 19,010 63,140 24, 358 505 120 112 172 935 59 480 143 48 168 933 20 582 236 25 149 1,008 30 PORTUGAL [Millions of escudos] LITHUANIA 1924 Decem- November ber 9 348 Gold Balances abroad . Bills Note circulation Deposits 1,762 76 9 319 164 1, 746 72 [Thousands of litas] 1923 October December 9 305 173 1,747 61 9 37 152 1,396 41 Gold Foreign exchange reserve Loans and discounts Note circulation Deposits 30, 62, 38, 94. 29, 947 667 062 708 816 NETHERLANDS [Millions of florins] RUMANIA [Millions of lei] 563 7,338 10, 787 19 487 6,818 Gold Bills Government loan. Note circulation Deposits 563 7,143 10, 793 19, 227 7,132 555 5,825 11,561 17, 941 6,802 BELGIUM NORWAY [Millions of francs] [Millions of kroner] 1925 1924 January Decem- Novem- January ber ber 272 30 1, 545 7,648 258 Gold Foreign bills and balances abroad Bills Note circulation . . . __. Private deposits _. _...._ 272 18 1,479 7, 590 435 270 18 1,312 7, 603 293 270 18 1, 353 7, 590 192 Gold Loans and discounts. Balances abroad Note circulation Deposits: State Private 147 447 15 365 17 84 POLAND DENMARK [Millions of kroner] Gold Bills Loans Foreign bills and balances abroad Note circulation Current accounts 505 115 125 157 893 63 Gold Domestic bills __ Foreign bills Loans Note circulation Deposits 209 214 56 29 456 67 [Millions of zlote] 209 187 61 43 478 82 210 231 59 26 479 72 210 230 58 17 446 79 1925 January 1924 Decem- November ber October RUSSIA [Note issuing d e p a r t m e n t . Gold Foreign currency Loans and discounts B a n k notes T h o u s a n d s of chervontsi] 14 914 10,248 31, 289 55 025 14,195 11,165 34, 013 59, 597 13, 140 10,139 •33, 749 57, 719 Gold Foreign exchange, etc Bills 8,754 Note circulation 6,502 Current accounts, etc.: 14,592 Treasury 30, 300 Private __ 104 242 270 553 103 269 257 551 103 ! 247 250 498 ! 101 242 245 504 3 50 6 58 40 ; 43 ! 4 48 MARCH, 199 FEDERAL RESERVE BULLETIN 1925 SPAIN FINLAND [Millions of pesetas] (Millions of F . m a r k s ) 1925 Janu- Decem- Novem- January ber ary ber Janu- Decem- Novem- January ber ary ber Gold 2,536 31 926 4,529 957 Balances abroad _ Bills discounted Note circulation Current accounts 2,535 33 909 4,535 912 1924 1925 1924 2,535 30 813 4,474 921 2,528 30 964 4,336 1,039 SWEDEN Gold . . . . . . Balances abroad, etc Finnish and foreign government securities . Domestic bills Note circulation Current accounts: Private Treasury 43 874 43 8 4 43 617 43 674 473 598 1,205 486 540 1,250 496 766 •1,228 529 620s 1,279 53 284 46 158 79 213 63 365 [Millions of kronor] GREECE Gold Balances abroad and foreign bills Domestic bills Government securities: Swedish Foreign Note circulation Deposits - _. -. 234 108 390 237 100 455 239 56 328 272 41 346 13 43 483 291 13 38 537 304 14 41 537 133 14 74 509 232 SWITZERLAND [Millions of francs] (Millions of drachmae) Decem- Novem- Octo- December ber ber ber Gold and balances abroad. Government loans and securities Discounts and loans Note circulation Private deposits: Sight Time Gold Domestic bills Loans Balances abroad and due from correspondents Note circulation. Deposits -, 506 304 52 506 311 70 505 284 67 537 259 51 70 825 164 88 914 120 64 859 123 41 884 74 1923 1924 2,182 3,987 2,528 4,826 2,399 3,979 2,407 4,754 2,084 4,196 1,815 4,681 1,779 1,066 1,669 1,070 1,701 1,008 HUNGARY ( M i l l i a r d s of H . crowns) 1924 1925 Janu- Decem- Novem- Octoary ber ber ber AUSTRIA Gold (Milliards of krone) Gold. Foreign bills (reserve) Other foreign bills Domestic bills, etc Note circulation Deposits.. 111 3, 227 1, 985 1, 544 7, 902 438 111 4, 771 111 4,312 91 3,811 1, 880 8, 388 553 1,944 8,072 485 1,251 6,735 537 Foreign exchange Bills, etc Note circulation... Current accounts: Public Private -. -. . . . 508 1,816 1,985 4,443 503 1,659 1,872 4,635 2,012 127 1,865 204 1,665 264 } 1,465 1924 1925 (Millions of Cz. K.) 1, 029 643 l t 083 553 7, 917 497 533 1,933 1,977 4,514 YUGOSLAVIA (Millions of dinars) CZECHOSLOVAKIA Gold and silver Balances abroad and foreign currency. Bills discounted Advances on collateral _. Note circulation Checking accounts 510 1,967 1,849 4,450 Janu- Decem- Novem- Januber ary ary ber 1, 050 737 1, 314 625 8, 810 1, 164 1, 051 714 1, 115 666 8, 501. 676 1,038 1,126 722 780 8,810 719 Gold Foreign currency and balances abroad Bills.. Note circulation _ __ Current accounts 72 375 1,208 5,795 345 72 397 1,316 6,034 247 72 385 1,289 6,002 307 69 365 1,297 5,774 263 DISCOUNT RATES OF 27 CENTRAL BANKS [Prevailing rates with date of last change] Country Austria Belgium Bulgaria _ Czechoslovakia Danzig Denmark Rate P.ct. 13 10 N o v . 6,1924 Jan. 22,1923 A u g . —, 1924 6 10 7 M a y 28,1924 Sept. 11,1924 Jan. 17,1924 Changes.—German In effect since— Country Rate P.ct. England 5 Esthonia 9 Finland. 9 France 7 Germany. __ 9 Greece IV* Hungary 12H In effect since— Mar. May Mar. Dec. Feb. Jan. Sept. 5, 1925 19,1924 6,1924 11,1924 26,1925 14,1923 17,1924 Country India Italy Japan Latvia Netherlands Norway.. Poland Rate P.ct. 7 5H In effect since— Jan. July 8.03 N o v . 8 Feb. 4 Jan. Nov. 10 Nov. 22,1925 11,1922 18,1919 16,1924 15,1925 26,1924 28,1924 Country Portugal Rumania ... South Africa Spain Sweden SwitzerlandYugoslavia. . Rate I n effect since— P.ct. 9 6 5 5V2 4 6 Reichsbank from 10 to 9 per cent on F e b r u a r y 26, 1925; B a n k of E n g l a n d from 4 to 5 per cent, M a r c h 5, 1925. Sept. Sept. Jan., Mar. Nov. July June 12,1923 4,1920 1925 23,1923 9,1923 14,1923 23,1922 200 FEDERAL, RESERVE BULLETIN MARCH, 1925 FOREIGN TRADE OF PRINCIPAL COUNTRIES UNITED STATES [Thousands of dollars] 1925, January FOREIGN COUNTRIES 1925, cumulative 1924, Decem- through last ber month noted 1924, cumu- I lative : through last month noted IMPORTS By classes of commodities: Total Crude materials for manufacturing Foodstuffs in crude condition Foodstuffs partly or wholly manufactured,__. Manufactures for use in manufacturing Manufactures ready for consumption Miscellaneous By countries: Total Europe __. France Germany Italy United Kingdom Total North America Canada __ Total South America Argentina Total Asia and Oceania Japan Total Africa 346,184 : 333,562 346,184 295, 506 147,597 131,701 147, 597 106,434 38,066 40,098 38,066 32, 584 32,336 ' 27,896 32,336 38, 202 63,104 , 62,692 63,104 58,044 62,813 ! 2,268 j 68,990 2,185 62,813 2,268 57,605 2,637 102,803 110,721 13,924 14, 436 11,402 = 12,793 8,463 9,084 1 39,349 35,178 77, 546 , 69,136 32,950 36,489 42,253 ; 44,524 6,523 6,294 112,928 98,017 33,284 39, 626 10,651 11,165 102,803 13,924 11,402 8,463 35,178 77,546 32,950 42,253 6,523 112,928 33,284 10,651 87,989 10,787 11, 246 5,992 30,835 75,167 31, 954 37,967 4,099 82,679 34,812 11,704 446, 577 445,716 446,577 168,194 168,273 168,194 25,873 39, 516 25,873 1925, January France (million francs): Imports Exports Germany (million gold marks): Imports Exports... United Kingdom (thousand £ sterling): Imports Exports Reexports Canada (thousands of dollars): Imports Exports Japan (million yen): Imports Exports __ South Africa (thousand £ sterling): Imports Exports ' 54,044 54, 389 54,044 58, 271 53, 704 58,271 133,059 997 6,139 122,093 676 7,066 133,059 997 6,139 269,415 273, 342 29,210 .: 27,862 49, 615 50,671 22,668 23,914 113,136 115, 884 77, 948 • 76,398 37, 063 38,123 31, 745 29, 752 12,893 10, 702 60,885 58, 362 27,875 26,451 6,584 7,026 269,415 29,210 49, 615 22,668 113,136 77,948 37,063 31,745 12,893 60,885 27,875 6,584 3,173 3,563 4,118 4,042 3,173 ; 3,563 ! 2,882 2,697 1,372 697 1,309 740 1, 372 | 697 ; 568 431 128,907 69,051 13,284 101,187 64, 235 13,311 : 58, 376 75,999 66,568 70,355 58,376 75,999 60,946 125,462 226 147 185 180 226 147 214 111 5,489 4,778 5,845 7,928 5,489 4,778 4,932 7,366 Decem- November ber Denmark (million kroner): Imports 225 Exports _ 179 132,848 Italy (million lire): Imports _ 2,495 Exports 1,778 13,810 Netherlands (million guilders): 220 Imports 59,315 Exports. 136 54;619 Norway (million kroner): 139 Imports Exports. 95 127,826 639 Sweden (million kroner): 119 Imports 6,115 124 Exports 202, 668 Brazil (million milreis): i 262 Imports 23,195 Exports __! 387 40,966 16,858 Australia (thousand £ sterling): 12,389 Imports 84,863 Exports 20, 639 74,557 40,752 India (million rupees): 172 Imports 23,874 Exports 361 8,959 ! 395,172 87,034 47,637 7,039 131,610 • 128,907 69,308 69,051 12,052 13,284 1924 EXPORTS By classes of commodities: Total Crude materials for manufacturing.__ Foodstuffs in crude condition _ _ Foodstuffs partly or wholly manufactured Manufactures for use in manufacturing _. Manufactures ready for consumption Miscellaneous Reexports By countries: Total Europe France._____ _. Germany ___ Italy United Kingdom Total North America Canada Total South America Argentina _. Total Asia and Oceania _. Japan Total Africa 1925, 1924, cumu- ! cumu1924, lative lative Decem- through through ber last last month month noted noted 1924 1923 212 191 2,361 2,152 2,031 1,694 1,646 1,414 19,387 14,313 17,225 11,059 218 159 2,364 1,661 2,009 1,303 144 103 1,548 1,064 1,343 833 129 123 1,402 1,252 1,295 1,142 261 357 1,977 2,543 1,606 2,196 12,275 16, 537 145,463 140,194 136,273 110,690 225 336 2,437 3,824 2,269 3,413 : 1 Figures for August and September and cumulative through September, 1924, and 1923. The following table presents the Federal Reserve Board's index numbers of the monthly volume of foreign trade of the United States and monthly fluctuations in ocean freight rates prevailing between this country and principal European trade regions. For methods of construction of these indexes reference may be made to the FEDEKAL RESERVE BULLETINS for July, 1920, and August, 1921. 3N TRADE INDEX [1913=100] 1925 January Imports: Total Kaw materials Producers' goods. Consumers' goods. Exports: Total Raw materials Producers' goods. Consumers' goods 217.1 186.4 296.9 134.7 127.8 123.2 181.2 117.2 INDEX OF OCEAN FREIGHT RATES [January, 1920=100] 1924 DeNoOctocember vember ber 194.7 185.4 226.3 153.2 136.7 135.3 186.0 117.4 186.7 150.8 258.0 138. 0 155. 6 166. 6 184.9 104. 7 198.5 133.7 308.0 152.2 157.8 164.4 174.7 127.8 1925 January ; 1924 Febru- Janu- DeNo- February ary cember vember ary 182.2 : United States Atlantic ports 149.4 to239.1 United Kingdom 168.4 French Atlantic 27.8 27.6 29.8 27.6 29.7 27.8 32.2 28.8 29.9 25.3 101.0 79.3 162.2 142.9 25,1 23.5 20.7 25,5 25.6 23.5 23.8 26.9 25.3 23.5 23.5 26.7 27.5 23.5 22.9 28.1 25.0 23.4 19.9 25.8 Netherlands and gium Scandinavia Mediterranean All Europe Bel- 201 FEDERAL RESERVE BULLETIN MARCH, 1925 INDUSTRIAL STATISTICS FOR FOREIGN COUNTRIES ENGLAND GERMANY 1925 1924 1924 Janu- Decem- Novem- January ber ber ary Production: Coal (thousand long tons) Pig iron (thousand long tons) | Steel ingots and castings (thou- j sand long tons) | 2 Raw cotton, visible supply j (thousand bales) I Exports: Iron and steel and manufactures (thousand long tons) Cotton manufactures (million yards) _ Coal (thousand long tons) Imports: Raw cotton (million pounds) Raw wool (million pounds) Raw hides, wet (thousand pounds). Transportation: Ships cleared with cargo3 (thousand tons). _ __' Freight-train receipts (thousand pounds sterling) Freight-train traffic (million tonmiles) Unemployment: Among trade-unionists (per cent). In insured trades (per cent) Capital issues (thousand pounds sterling) 1 2 8 19,958 569 19,743 126,024 580 584 20,788 637 674 694 605 551 1,264 1,067 1,138 325 303 312 338 406 4,366 413 5,168 333 4,759 357 5,441 297 79 277 68 8,472 6,565 5,352 5,174 207 37 | 222 61 8,910 6,338 5,495 5,126 8,744 | 8,074 1,565 ! 1,434 9.0 11.5 9.2 10.9 8.6 | 11.0 | 8.9 11.9 18,382 27,712 22,122 i 6,995 Decem- Novem- Octoberl D l c f i n ' / ber ber ber Exports: Iron and its manufactures (metric tons) 357,560 278, 049 Machinery and electrical supplies (metric tons) 32, 793 37,939 Dyes and dyestuffs (metric 11,243 tons) 12,090 Coal (metric tons) 889,310 637,795 Imports: Raw wool (metric tons) 4,371 Silk, half manufactured (metric 614 tons) _ 531 25,020 Cotton (metric tons) 42,455 875,'"" ., 023,593 Iron ore (metric tons) 1,109,446 !., 180,907 Coal (metric tons) Ship arrivals in Hamburg (thousand net reg. tons).. Unemployment: Applicants for every 100 positions Number receiving State aid Business failures--_ 1,462 1,391 314 592,479 793 101.9 5,958 434 374 24,018 22,302 172,060i 70, 299 979,779;!, 541, 716 1,378 1,179 82.6 111.6 1924 Janu- I Deeem-Novem- Januber ber ary Janu- Decem- Novem- January ary ber ber 1 Coal and lignite, including Lorraine and the Saar. * Bale of 50 kilos. End-of-month figures. * End-of-month figures. 4 Five weeks. 5,056| figures. 2 i n millions of gold marks. CANADA 1924 Production: 5,024 4,740 Coal i (thousand metric tons) 634 Pig iron (thousand metric t o n s ) . . 665 Crude steel (thousand metric 558 tons).. 605 2 Cotton stocks at Havre (thousand bales) 1207,324 177,788 123,345 Exports: ; Total volume (thousand metric 2,949 2,512 tons) _. 2,322 Imports: Total volume (thousand metric 4,360 tons) __ 4,731 3,522 Raw cotton for consumption (metric tons).__ 47,372 34,817 Raw silk (metric tons) _. 493 1,762 2,030 2,547 Coal (thousand metric tons) Transportation: Ships cleared with cargo (thousand tons) _ 2,522 2,607 R a i l w a y receipts (thousand francs) _ <84?,270 681,005 Freight-car loadings (average 61,815 64,284 64,256 daily number) Unemployment: 118 N u m b e r in Paris receiving aid 3 _. 278 Demands for employment not 7,829 filled (number men in France) 3 . 8,563 6,452 37,694 7,479 8,739 39 370 339, 3701 129,638 29638 299 650 529,161 436,607 1,439, 780 621 29 616 74.9 147.9 31. 1925 1925 134,411 29, 763 Janu- Decem- Novem- Januber ber ary ary 1 Last week of month FRANCE 189,671 1924 1925 Capital issues 2 Index of security prices: 1 25 domestic stocks, Jan. 4, 1924=100 Five weeks. End-of-month figures. Figures include Irish Free State. 1923 4,928 586 541 133,851 1,768 3,927 31,779 271 1,824 Production: Pig iron (thousand tons) Crude steel.__ Railway receipts (thousand dollars).. Unemployment among trade-unionists (percent) Business failures (number) 1 Authorized capital of new companies (thousand dollars) 1 Bond sales (thousand dollars) Security prices, average market prices, 20 industrial stocks Receipts of wheat at Fort William and Port Arthur (thousand bushels) Receipts of livestock at stockyards in Toronto and Winnipeg: Cattle (number) Hogs ( n u m b e r ) . . . 596 8,454 54 9.7 49 7.5 64 14, 280 44,643 17,168 43,808 13, 602 28, 514 17,811 86,361 105.6 102.0 99.9 92.3 20,341 42, 660 12,662 53,774 78, 533 107 6891 79237 107,6891 79,237 41,800 81,037 1923 I Decen Novem- October ber 1 ber 519,061 57,362 64 1924 2,238 64 41 31,412 28! 27 28, 305 December Exports: Planks and boards (million feet).. 180,831 189,508 220,255 161,597 Preservedfish(thousandpounds). 14,4 65 17,252 20,136 10,478 Wood pulp (thousand pounds)-. 145,671 177,780 152,812 143,347 29,847 26,982 14,288 57,378 Wheat (thousand bushels) Imports: 1,354 1,408 1,416 1,416 Coal (thousand tons) 7,920 11,097 Raw cotton (thousand pounds) __ 14,636 15,765 2,169 2,009 2,023 Machinery (thousand dollars) 2,207 1 Average for weeks reported. 202 FEDERAL RESERVE BULLETIN MARCH, 1925 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES The tables below give the all-commodities and group index numbers of wholesale prices in the five countries included in the Federal Reserve Board's indexes. In the first table the all-commodities index for each country is shown both in terms of paper currency and converted to a gold basis. The latter figure takes into account the depreciation of the foreign currency in terms of the American dollar (or gold) and the series indicates relative price levels in the several countries when all prices are expressed in dollars. The wholesale price index of the Bureau of Labor Statistics for the United States, with the group indexes shown by that bureau and the regrouping made by the Federal Reserve Board, has oeen transferred from this section to the section on business conditions in the United States and appears on page 166 of this issue. FEDERAL RESERVE BOARD WHOLESALE PRICE INDEXES FOR ALL COMMODITIES i On paper currency basis England France Canada 100 211 239 | 149 158 165 | 159 | 100 241 310 198 165 170 176 100 512 344 319 394 446 100 207 250 167 149 150 147 100 235 240 181 182 188 200 159 159 163 163 163 163 168 164 165 166 171 177 391 391 404 404 416 427 151 150 149 147 145 144 163 163 160 158 156 154 156 158 156 159 160 165 178 180 180 181 177 174 174 173 172 175 176 177 445 469 483 428 428 442 440 442 436 442 449 451 146 148 147 143 143 145 147 149 146 148 148 149 168 | 178 455 157 Year and month 1913, 1919, 1920, 1921, 1922, 1923, 1924, average average average average average average average - - - - Converted to gold basis Japan United States England France Canada 100 211 239 149 158 166 159 100 219 233 156 150 159 160 100 100 198 223 150 147 147 145 100 241 242 175 175 183 166 183 179 191 196 199 205 159 159 163 163 163 163 158 154 154 154 154 159 119 I 147 146 145 145 142 140 179 176 186 192 193 193 205 200 200 201 200 189 191 196 198 206 210 209 163 163 160 158 156 154 156 158 156 159 160 165 156 160 158 162 158 155 156 160 158 161 167 171 108 | 117 ! 137 128 120 117 125 120 120 123 126 142 144 143 140 141 142 146 149 145 148 148 149 185 182 172 165 161 156 158 163 161 161 162 161 168 175 127 156 1923 July August September October November December - - - 187 133 136 124 121 i 115 j 123 125 119 116 | j 1924 January February March April May June July" August September October November December - - -- -• Japan - - -•-— --1925 January - 107 I FEDERAL RESERVE BOARD WHOLESALE PRICE INDEXES FOR GROUPS OF COMMODITIES 1 Year and month All commodities Grouped by stage of manufacture Grouped b y origin ConRaw Pro- summa- ducers' ers' terials goods goods Export DoImmes- ported goods tic goods goo' $ 163 158 156 159 160 165 168 169 164 161 165 165 171 176 156 149 148 146 147 151 151 160 156 156 158 162 165 167 165 160 158 160 161 166 170 143 139 143 146 150 149 147 196 177 163 167 169 171 175 178 173 172 175 176 177 178 178 171 168 171 174 175 176 169 165 166 168 169 171 171 186 184 183 187 187 187 188 177 173 173 175 176 177 178 179 174 169 174 178 179 179 186 176 172 174 178 180 179 445 442 436 442 459 456 464 469 469 455 441 442 416 419 402 411 423 427 420 423 548 511 516 534 489 451 443 454 ENGLAND 1924—January August September— October November December 1925—January FRANCE 1924—January August September October. Grouped by stage of manufacture Grouped b y origin Ex- ConDoport Raw ProIm- goods mes- ported ma- ducers' sumers' tic terials goods goods goods goods FEANCE—contd. UNITED STATES 1924—January August September-_. October November December 1925—January Year and month All commodities 1924—November December ___ 1925—January.. . . . . 449 451 455 478 480 480 439 440 442 424 424 435 430 431 436 541 545 546 461 463 464 146 149 146 148 148 149 157 128 134 133 137 137 139 149 166 153 153 151 155 153 152 166 169 162 161 161 163 169 143 148 145 147 147 148 157 166 157 155 157 160 159 159 133 152 150 160 161 164 180 205 196 198 206 210 209 222 206 198 211 217 216 203 194 202 212 216 218 196 192 196 202 204 201 204 194 200 208 212 210 211 207 189 200 202 202 215 194 200 204 213 214 CANADA 1924—January August September October November December 1925—January JAPAN 1924—January August September October November Decembe* 1925—January i Complete descriptions of these index numbers may be found in the following issues of the BULLETIN: United States—May and June, 1920, June, 1921, and May, 1922; England—February, 1922; France—August, 1922; Canada—July, 1922; Japan—September, 1922. MARCH, 203 FEDERAL RESERVE BULLETIN 1925 WHOLESALE PRICE LEVELS IN PRINCIPAL COUNTRIES ALL-COMMODITIES INDEX NUMBERS [Pre-war-100] Europe Year and month 1924 January February July August September October November December Austria Bel- i Bul- CzechoDen-1 slo- l mark gium I garia vakia 1,874,800 1,915,800 1,913,300 2,013,600 1,937,300 2,008,600 2,076,600 2,075,400 580 642 566 547 550 555 569 566 1925 January February 2,711 2,658 2,737 2,853 2,848 2,988 3,132 3,181 210 223 220 233 231 234 231 232 165 167 163 165 167 170 170 170 234 234 171 Spain 178 180 182 182 184 186 181 161 162 157 160 163 167 167 168 I 1,071 1,078 1,085 1,111 1,117 1,114 1,120 494 544 481 477 486 497 503 507 117.3 116.2 115.0 120.4 126.9 131.2 128.5 131.3 514 138.2 North and South America United States (Bureau SwitzerSweden land^ of Labor Canada Statistics) Year and month 1925 January.-. February.. 1,013 1,024 1,045 559 Europe—C ontinued 1924 January | February July August September October November.... December___ 974 999 953 GerEngmany; I land; Federal] Board Finland France Statis- Hungary of tical I Trade Bureau \ NorItaly Netherway Poland Russia2 lands (Oslo) Gold basis 123 131 145 145 142 144 154 571 573 567 572 580 602 621 640 156 158 151 151 158 161 161 160 250 262 271 274 275 276 277 278 107 112 102 109 112 116 117 118 657 160 279 281 120 Africa Asia and Oceania Peru Australia China (Shanghai) Dutch East Indies 180 183 183 173 171 170 169 169 170 151 152 147 150 149 152 153 157 157 157 153 157 154 157 158 161 190 189 192 193 190 192 191 195 174 170 163 162 162 163 163 165 156 160 152 149 149 153 155 157 171 170 160 ! 165 199 194 163 160 159 174 177 177 175 173 India (Calcutta) 209 207 184 184 180 177 Japan New (Tokyo) Zealand 172 178 179 180 179 181 180 176 211 208 195 200 206 213 214 213 171 213 175 180 180 181 181 180 181 181 Egypt (Cairo) 133 135 132 143 148 156 158 156 South Africa 131 125 "133 157 1 8 First of month figures. Wholesale price index of industrial products on the base of 1913=100. First of the month figure. The foreign index numbers of wholesale prices are cabled to the Federal Reserve Board by the various foreign statistical offices. Index numbers of commodity groups for most of the countries are also available in the office of the Division of Research and Statistics of the board, and may be had upon request. Wherever possible the indexes nave been shifted from original bases to a 1913 base. Further information as to base periods, sources, number of commodities and period of the month to which the figures refer may be found on page 48 of the January, 1924, issue of the BULLETIN. 204 FEDERAL RESERVE BULLETIN MARCH, 1925 RETAIL FOOD PRICES AND COST OF LIVING IN PRINCIPAL COUNTRIES INDEX NUMBERS OF RETAIL FOOD PRICES [Pre-war=100] European countries United States (51 cities) Other countries Es- France Ger- Italy Neth- Nor- SwitAustria Bel- Bul- Eng- thoerzer(Paris) many (Mi(Vienna) gium' garia land^ nia* lan) lands way land Canada i Aus- India New Zeatralia (Bombay) land South Africa 1923 October November December 1924 January February March April May . June July August September... October November... December 1925 January February 147 148 147 1,263,600 1,264,700 1,286,000 117 121 124 2,219 2,365 2,547 172 173 176 106 104 107 349 355 365 151 502 503 499 145 149 149 217 221 226 162 166 167 144 144 145 157 157 156 147 147 152 146 147 147 117 120 118 146 144 141 138 138 140 140 141 144 146 147 149 1,352,700 1,382,100 1,393,000 1,383,800 1,416,900 1,445,700 1,436,200 1,565,200 1, 562,300 1,584,500 1,619,800 1,624,800 126 130 128 121 113 118 123 124 127 135 140 139 2,674 2,537 2,497 2,501 2,438 2,687 2,626 2,727 2,723 2,856 2,994 3,040 175 177 176 167 163 160 162 164 166 172 179 180 111 113 115 115 111 111 115 119 116 110 110 113 376 384 392 380 378 370 360 366 374 383 396 404 127 117 120 123 126 120 126 122 125 134 135 135 515 516 523 524 519 518 508 507 514 543 567 579 150 151 152 152 151 151 150 150 152 154 156 157 230 234 241 240 241 241 248 257 261 264 269 274 168 167 167 165 165 168 168 166 166 169 170 170 145 145 143 137 133 133 134 137 139 139 141 143 155 153 152 150 151 149 148 147 146 146 147 148 154 151 147 143 143 147 151 156 156 156 157 156 150 149 150 150 150 150 148 146 145 146 148 150 120 122 122 123 122 120 117 117 117 120 122 121 151 1,644,600 1,661,800 408 137 168 145 145 148 152 152 178 176 157 120 INDEX NUMBERS OF COST OF LIVING European countries Massachusetts Austria (Vienna) Belgium Czechoslo- Engvakia i land* India Po- Spain Swe- SwitFin- France Ger- Italy NethCan- Auszer- ada er- Nor- land (Bom- South land (Paris) many (Mi1 traden land lia bay) Africa lan) lands way 1923 October November. December.. 158 157 158 1,102,700 1.114.900 ]L, 124,900 458 463 470 901 898 909 175 175 177 1,193 1,190 1,170 1924 January February.. March April May June July August September. October November. December.. 157 156 156 151 154 154 155 155 157 157 157 158 L, 174,000 L, 194,000 L, 199, 600 L, 197,300 L, 220,900 L, 244,200 L, 239,100 L, 314,200 L, 316, 200 :L, 330,700 L, 357,400 , 365,000 480 495 510 498 485 492 493 498 503 513 520 521 917 917 908 907 916 923 909 897 908 916 922 928 177 179 178 173 171 169 170 171 172 176 180 181 1,155 1,143 1,141 1,121 1,121 1,147 1,154 1,198 1,199 1,219 1,222 1,217 1925 January February. _ 158 1, 376,200 1,382, 500 521 517 931 180 1,199 1 Other countries 345 365 366 367 377 61 126 125 502 502 499 110 104 107 112 llo 112 116 114 116 122 123 123 510 517 521 522 518 518 512 511 516 546 563 573 124 178 231 179 236 173 244 176 258 181 266 47 55 80 121 127 126 127 126 124 127 135 141 150 152 153 174 177 182 177 17S 176 190 180 195 173 180 186 182 "In" 180 189 185 " l 7 4 ' 175 190 130 179 First of the month'figures. 164 167 168 149 150 150 152 152 153 157 132 133 133 169 168 168 166 166 168 169 166 166 169 170 170 150 149 148 150 145 143 143 "149" 143 145 146 146 147 147 158 156 153 150 150 153 156 160 160 160 161 160 133 134 134 134 134 133 132 132 132 133 134 133 149 149 157 157 133 21921=100. Information as to the number of foods included and the items entering into the cost of living indexes is available in the board's office. The original bases of the indexes have been shifted to July, 1914, wherever possible. 205 FEDERAL RESERVE BULLETIN MARCH, 1925 BANKING AND FINANCIAL STATISTICS FEDERAL RESERVE BANKS AVERAGE DAILY CONDITION FOR JANUARY, 1925, AND DECEMBER, 1924 [Amounts in thousands of dollars] Total earning assets Total cash reserves January January Federal reserve notes in circulation Reserve percentages December January December January December Total deposits Federal reserve bank Boston New York Philadelphia-. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco __.. Total: 1925-24 1924-23. 1923-22. 1922-21. 1921-20. 1920-19. 1 December December January 101,042 294,557 74,027 124, 709 32,680 25,322 138,645 42,430 28,183 49, 737 49,431 111,314 112,368 365,813 88,304 136, 643 34,518 33,829 150,874 44, 934 31,328 54, 679 51,711 115,705 245,088 977,395 234,489 256, 595 123,094 177,168 388, 747 103, 561 102, 903 114,314 74,873 274,450 245,869 941,996 236,295 270,314 131, 744 174,400 383,465 100, 680 103,740 109, 201 76, 554 282,451 141,612 899, 025 131,363 178,287 68,898 67,105 320,256 83,989 58,314 92,432 66,103 169, 527 138,686 899,828 128,863 177,483 68,159 64, 731 315, 770 80, 503 59,355 90, 243 63,498 168,227 191,272 358,065 156, 295 188,817 80,873 139,857 189,112 55, 705 68, 689 69, 501 51,480 204,690 207,709 382,558 173,893 209,295 89,592 143,811 199,720 57,972 72, 599 73,299 57,383 216,487 73.6 77.8 81.5 69.9 82.2 85.6 76.3 74.1 81.0 70.6 63.7 73.3 71.0 73.5 78.0 69.9 83.5 83.6 74.4 72.7 78.6 66.8 63.3 73.4 1,072,077 1, 000, 668 1,191,191 1,304,165 3,034,655 3, 043,952 1,220,706 1,200,351 1,304,433 1,517,194 3,313, 502 3,034,224 3, 072,677 3,241, 596 3,201,969 3,043,984 2,287,274 2,098,498 3,056, 709 3,168,984 3,166, 019 2,994,982 2,221,573 2,149,653 2,276,911 1,979,913 1,981, 717 1,800,989 1,822, 600 2, 027,861 2,255,346 1,931,408 1,891,457 1,755,226 1,821, 746 1,990, 221 1, 754,356 2,112,873 2,288,527 2,272,057 3,177,656 2,887,846 1,884,318 2,292,306 2,415,515 2,416,096 3,342,520 2,955,476 76.2 79.2 75.0 73.8 75.0 73.5 71.8 144.7 145.7 74.7 147.5 144.9 Calculated on basis of net deposits and Federal reserve notes in circulation. FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS RESOURCES [In thousands of dollars] Gold with Federal reserve agents: Jan. 28 Feb.4__ Feb. 11 Feb. 18 Gold redemption fund with U. S. Treasury: Jan. 28 Feb. 4 Feb. 11 Feb. 18 Gold held exclusively against Federal reserve notes: Jan. 28 Feb. 4 Feb. 11 Feb. 18 Gold settlement fund with Federal Reserve Board: Jan. 28 Feb.4 Feb. 11 Feb. 18 Gold and gold certitificates held by banks: Jan. 28 Feb. 4 Feb. 11 Feb. 18 Total gold reserves: Jan. 28 Feb.4 Feb. 11 Feb. 18 Dallas San Francisco 61,179 60,663 59,946 58,961 33, 719 32,919 32,058 32,797 202,319 198,253 195,301 193,472 1,438 1,744 1,681 1,136 3,182 3,089 3,312 3,833 2,404 2,532 2,675 2,390 2,083 2,388 2,956 2,590 57,210 56,695 56,199 55,223 69,383 69,038 68, 730 68,495 64,361 63,752 63,258 62,794 36,123 35,451 34, 733 35,187 204,402 200,641 198,257 196,062 78,534 88,452 93,436 93,327 20,699 23,052 18,580 21,998 23,163 25,839 26,516 23,626 43,441 48,746 47,297 46,270 19,876 22,286 25,240 29,989 33,463 23,971 32,881 39,618 9,602 8,419 8,.681 8,709 110,067 106,201 102,054 102,702 8,772 9,289 9,071 9,459 6,345 6,413 6,447 6,501 4,276 3,897 3,418 3,957 10,003 10,144 10,182 8,808 33,102 42,685 30,239 30,486 163,711 168,913 171,083 171,779 358,322 363,222 366,977 366,616 98,891 112,078 89,036 101,290 116,395 83,850 101,693 113,973 113,021 86,680 66,002 67,881 70,155 73,984 270,967 267,297 261,377 266,166 Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis 1, 730, 679 1,726,231 1,712,410 1,701,939 150,085 156,839 153,706 150,683 444,0.47 442,197 442,098 442,060 159,128 155,124 151,936 149, 709 170,417 170,005 170,400 170,076 78,458 77,118 75,727 74, 745 144,054 147,054 146,056 145,144 165,795 165,765 165,720 165,695 53,533 53,000 52,413 51,238 67,945 67,294 67,049 67,359 53, 660 51,637 48,298 50,139 15, 777 8,106 10,413 12,750 5,018 8,507 7,230 6,342 9,431 12,315 4,270 5,537 3,537 2,471 2,677 2,960 1,807 1,801 2,129 2,107 1,380 2,185 1,402 1,617 3,926 2,804 5,767 4,892 3,677 3,695 3,786 3,985 784,339 777,868 760,708 752,078 165,862 164,945 164,119 163,433 449,065 450,704 449,328 448,402 168, 559 167,439 156,206 155,246 173,954 172,476 173,077 173,036 80,265 78,919 77,856 76,852 145,434 149,239 147,458 146,761 169,721 168,569 171,487 170,587 590,815 570,035 576,593 578,550 53,554 55,491 52,448 57,477 212,088 173,960 141,343 137,428 29,764 25,676 45,008 47,693 55,595 53,812 61,115 51,181 11,963 17,495 17,785 13,634 8,675 11,255 14,944 16,309 564,232 572, 987 559,039 574,647 20,839 21,730 23,275 24,463 289,632 294,404 297,195 307, 725 26,147 23,979 21,458 23,081 23,547 23,686 24,423 25,766 21,900 22,140 22,596 22,990 2,939,386 2,920,890 2,896,340 2,905,275 240,255 242,166 239,842 245,373 950,785 919,068 887,866 893,555 224,470 217,094 222,672 226,020 253,096 249,974 258,615 249, 983 114,128 118,554 118,237 113,476 Minne- Kansas City apolis 206 FEDERAL RESERVE BULLETIN MARCH, 1925 FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued RESOURCES—Continued [In thousands of dollars] Total Reserves other than gold: 143,160 Jan. 28 143,704 Feb. 4 144, 693 Feb. 11 139,929 Feb. 18 Total reserves: 082, 546 Jan. 28 064, 594 Feb. 4 041,033 Feb. 11045,204 Feb. 18 Nonreserve cash: 74,371 Jan. 28 62, 930 Feb. 4 58,045 Feb. 11 60,160 Feb. 18 Bills discounted: Secured by U.S. Government obligations164,892 Jan. 28 207,325 Feb. 4 190,515 Feb. 11 196,460 Feb.18 Other bills discounted— 108,800 Jan. 28 115,042 Feb. 4 141,291 Feb. 11 146,011 Feb. 18 Total bills discounted: 273,692 Jan. 28 Feb. 4 -_. 322,367 331,806 Feb. 11 342> 471 Feb. 18 Bills bought in open market: 307, 767 Jan. 28 Feb. 4 308,004 324,647 Feb. 11 Feb.18 311,747 U, S. Government securities: Bonds— 76,174 Jan. 28 Feb.4 75,216 Feb. 11 74,965 Feb. 18 74,945 Treasury notes279,665 Jan. 28 273,252 Feb.4 274,539 Feb. 11 273,082 Feb. 18 Certificates of indebtedness— 38,225 Jan. 28 40,360 Feb.4 40,592 Feb. 11 30,178 Feb. 18 Total U. S. Government securities: 394,064 Jan. 28 388,828 Feb.4 390,096 Feb. 11 378,205 Feb. 18 Foreign loans on gold: 10,500 Jan. 28 10,500 Feb. 4 10,500 Feb. 11 10,500 Feb. 18 All other earning assets: Jan. 28 Feb.'4 Feb.'ll Feb. 18 2,559 2,559 2,559 3,458 Boston New York Rich- . mond Atlanta Chicago Philadelphia Cleveland 5,726 6,972 7,902 7,478 11,406 11,941 10,303 9,755 6,670 6,446 6,226 5,981 12,898 13,161 13,093 13,180 19,637 19,636 18,840 20,438 264, 502 261,915 268,918 259, 738 120,798 125,000 124,463 119,457 176,609 182,074 184,176 184,959 377,959 382,858 385,817 387,054 12,764 13,984 15,061 14, 970 33,018 31,301 33,412 28, 202 253,019 256,150 254,903 260,343 983,803 950,369 921,278 921,757 3,856 3,531 3,939 3,969 28,509 22,130 18,980 19,073 1,927 1,915 1,910 2,146 5,200 4,842 2,818 4,364 3,805 3,287 3,456 3,074 6,058 5,202 5,338 4,818 10,019 8,610 8,008 14,673 12,109 13,179 11,120 69,291 111,733 108,916 104,388 18, 572 19,413 18,717 18,687 22,643 26,209 21,216 30,916 6,436 5,595 4,952 7,905 784 671 627 505 5,913 5,243 7,788 6,604 15,210 21, 513 40,155 43,958 6,785 10,046 10,017 10,166 9,868 11,467 13,287 19,203 18,914 17, 523 19,701 20,586 17,352 20, 967 17,724 84,501 133,246 149,071 148,346 25,357 29,459 28,734 27, 520 32,809 36,077 32,683 44,203 45,406 43,178 47,744 49,369 67,191 67,731 75,884 64,114 17,781 19,088 2,472 2,662 2,662 2,662 12,440 12,461 12,461 12,461 18,125 17,446 17,831 17,267 ! 230,196 ! 224,066 230, 574 233,498 St. Louis San Francisco Minneapolis Kansas City Dallas 2,128 1,854 1,845 1,714 4,107 4,173 4,126 3,825 9,646 9,502 9,375 9,435 5,673 5,654 5,493 5,805 106,168 ! 101,019 108,116 I 103,144 102,867 I 103,538 105,826 100,336 116,185 120, 568 118,099 116,846 75,648 77,383 79,530 83,419 276,640 272,951 266,870 271,971 19,487 19,080 I 19,017 ! 19,146 j 4,412 4,163 4,172 4,188 943 736 890 786 2,676 2,281 2,043 2,236 2,831 2,397 2,602 2,572 4,135 21,130 20,767 16,467 8,948 3,642 2,973 2,760 3,798 120 200 173 168 684 622 601 1,248 200 138 176 306 6,717 6,895 2,731 8,471 13,482 11,665 11,347 11,183 16,591 15,643 14,778 14,687 4,131 4,766 4,612 8,524 3,931 4,039 3,913 3,724 4,137 4,166 4,056 4,030 2,674 2,468 1,721 2,204 6,577 6,711 13,914 9,276 25,639 24, 509 22,475 27, 606 14,266 12,336 11,974 11, 688 37,721 36,410 31,245 23,635 7,773 7,739 7,372 12,322 4,051 4,239 4,086 3,892 4,821 4,788 4,657 5,278 2,874 2,606 1,897 2,510 13,294 13,606 16, 645 17,747 37,963 37, 553 37,322 34,206 1,258 1,347 1,900 4,602 4,901 4,051 3,404 5,514 30,483 31,223 36,627 39,235 20,074 20,378 20,147 18,252 2,124- 12,424 11,944 11,509 12,416 22,006 21,663 21,031 18,822 49,372 51,155 49,870 43,707 1,345 1,415 1,416 1,415 11,126 10,948 10.948 10.949 1,340 1,407 1,407 1,407 1,806 1,510 1,548 1,563 19,461 19,649 19,649 19,649 1,264 1,057 1,136 1,175 10,077 9,401 8,855 8,781 7,940 7,938 8,114 8,114 3,718 3,654 3,654 3,654 3,185 3,114 3,115 3,115 93,870 91,089 91,977 91,089 22,245 23,577 23,577 23,577 27,148 26.530 26.531 26,530 1,960 1,910 1,910 1,910 1,160 1,158 1,156 1,155 37,042 36,152 36.152 36.153 8,943 8,296 8,296 10,427 9,807 9,812 9,807 14,925 14,572 14,583 14,583 13,429 13,000 13,000 13,000 30,391 29,715 29.714 29.715 4,750 4,806 4,831 4,103 8,202 9,370 9,7£2 5,648 2,262 741 741 465 7,505 7,872 7,871 6,863 230 181 181 109 658 716 716 685 3,482 3,721 3,553 2,128 104 853 853 514 675 1,015 1,009 2,495 2,646 2,645 2,155 1,070 1,337 1,337 806 6,792 7,102 7,103 6,079 25, 347 24,914 25,324 24,032 114,512 112,920 114,190 109,198 25,852 25.733 25.734 25,457 45,779 45,350 45,350 44,342 3,530 3,498 3,498 3,426 3,624 3,384 3,420 10,311 10,206 10,285 21,179 20,223 19,676 19,211 25,360 25,156 25, 342 24,852 18,217 17,991 17,991 17,460 40,368 39,931 39,932 3,055 3,055 3,055 3,055 1,032 1,032 1,032 1,032 1,220 1,220 1,220 1,220 603 603 603 603 462 462 462 462 519 519 519 519 374 374 374 374 474 474 474 474 399 399 399 2,050 2,050 2,050 2,950 59,522 59,354 57,930 1,564 1,564 1,564 1,564 121 500 500 500 500 3,948 798 207 FEDERAL RESERVE BULLETIN MARCH,, 1925 FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued RESOURCES—Continued [In thousands of dollars] Total Total earning assets: 988,582 Jan. 28 1,032,258 Feb. 4 Feb. 11 1,059,608 Feb. 18 1,046,381 Uncollected items: 572,000 Jan. 28 567, 815 Feb.4 589,040 Feb. 11 Feb. 18 __. 682,314 Bank premises: Jan. 28 57, 939 58,004 Feb.4 58,057 Feb. 11.. 58,323 Feb. 18 All other resources: 24,831 Jan. 28 24,317 Feb.4_ 24,399 Feb. 11 24, 500 Feb. 18 Total resources: Jan. 28 Feb.4 . Feb. 11_ Feb. 18... __ 4, 800, 269 4,809,918 |4,830,182 4,916,882 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 91,339 85,444 94,035 91,125 269,259 316,952 342,200 324,713 70,980 76,055 76,638 76,345 117,771 120,200 116, 575 123,971 31,030 29,957 28,476 36, 237 23,253 20,233 19, 260 21,067 129,753 128,719 128,790 122,364 38,677 38,842 38,323 41,078 25,613 24,845 24,266 25,609 43,579 42,862 42,482 43,520 43,496 42,659 41, 318 39,191 103,832 105,490 107,245 101,161 50,867 51,803 54,026 65,598 125,787 124,005 132,137 152,482 51, 777 55, 766 50,850 66,660 52,960 50, 725 53,425 64,781 50, 386 47,896 52, 231 55,822 28, 350 27,700 28, 982 33, 391 71,812 72,002 69,167 84,453 31,893 31,337 34, 706 34,400 12, 631 11, 740 12,845 14,286 36, 319 35,252 37,854 40, 226 26,078 26, 651 27,314 30,903 33,140 32,938 35,503 39,312 4,190 4,190 4,190 4,190 16,250 16,303 16, 303 16, 304 1,114 1,114 1,114 1,114 7,573 7,573 7,573 7,573 2,446 2,446 2,446 2,446 2,780 2,780 2,780 2,780 8,099 8,099 8,099 8,099 3,385 3,395 3,404 3,615 2,982 2,981 2,981 3,034 4,024 4,024 4,067 4,067 1,833 1,833 1,833 1,833 3,263 3,266 3,267 3,268 189 164 176 230 7,963 7,816 8,193 8,108 293 298 360 336 421 426 409 428 652 505 473 491 2,110 2,107 2,096 2,088 2,317 2,247 2,127 2,170 316 319 323 319 3,352 3,277 3,154 3,154 767 745 740 721 1,831 1,810 1,767 1,827 4,620 4,603 4,581 4,628 403,460 401,282 411, 269 425,455 1,431, 571 1, 437, 575 1,439,091 1,442,437 356,287 359,214 361,446 380,099 448,427 445,681 449,718 460, 855 209,117 209,091 211,545 217,527 239,160 240,096 242, 632 249,103 599,959 602,535 602,008 613,126 184, 851 186,172 183, 795 189, 426 146,540 146, 723 147, 674 147,205 203, 550 205,732 205, 285 207,616 151, 717 152,733 154,364 159, 745 425, 630 423,084 421,355 424, 288 LIABILITIES Federal reserve notes in actual circulation: Jan. 28 _ Feb. 4 _____ Feb. 11 ___ Feb. 18 Deposits: Member bank reserve accountJan. 28 _ Feb.4 Feb. 11 _ Feb. 18 Government— Jan. 28 Feb. 4 Feb. 11 Feb. 18 Other depositsJan. 28 Feb. 4 __ Feb. 11 Feb.18 Total deposits: Jan. 28 __ Feb. 4 _____ Feb. 11 Feb. 18 ___ Deferred availability items: Jan. 28 Feb.4 Feb. 11_._ Feb.18 Capital paid in: Jan. 28 Feb. 4 _ Feb. 11__ Feb.18 Surplus: Jan. 28 Feb.4 Feb. 11 Feb. 18 1,684,311 1,690,385 1,713,662 185,549 192, 516 193, 690 338, 531 346, 783 348,623 346,315 149,462 150,183 161, 771 156,101 182,839 176, 557 188, 264 180,856 76,297 75, 893 75,426 75, 403 138,471 139,168 139, 753 140,458 183,189 180, 505 179,716 178,615 54,088 53,858 53, 067 53,174 66, 725 66, 972 66,865 67,921 66,846 66, 818 66,508 66,289 48,076 47,266 46, 334 45,899 194,238 195,489 194,819 194,169 2,171, 723 2,193,624 2,174, 546 2,190, 651 140, 331 134,393 140, 248 142, 674 845, 739 857, 509 850, 215 843,450 127,155 128, 372 120, 989 129, 771 179, 858 183,683 175,466 182, 760 67, 564 68,349 66, 230 68, 755 64,604 63,295 64,169 66,897 304,609 303, 714 310,210 308,201 81, 534 83,673 78,870 81, 539 55,309 55,552 56,386 53,952 86, 525 89,838 88, 524 88,803 60, 394 63,066 65,082 65,666 158,101 162,180 158,157 158,183 52,114 29,049 27, 601 26,129 3,688 1,980 2,745 2,164 18,364 6,343 6,112 5,945 2,665 1,605 1,408 1,829 2,336 2,627 1,850 880 2,460 925 2,498 1,399 2,051 2,076 2,171 2,574 1,699 5,064 1,118 1,632 2,672 1,208 2,558 1,849 1,538 1,171 670 998 2,938 2,347 2,260 1,783 2,123 1,368 1,396 2,094 9,580 2,335 2,815 2,982 41, 379 44,896 40,308 40, 341 151 180 507 210 30,934 32,833 29,185 29,818 376 526 471 531 1,027 1,236 1,118 143 236 232 165 332 237 206 180 1,100 1,368 1,422 1,123 1,169 1,915 737 1,089 358 495 449 345 925 913 815 695 121 201 214 153 4,862 4,965 4,834 4,914 2,265, 216 2,267, 569 2,242,455 2, 257,121 144,170 136, 553 143, 500 145,048 895,037 896, 685 885, 512 879, 213 130,196 183,102 130,503 I 187,337 122,868 178, 552 132,131 184,758 70,167 69,510 68,960 70,319 66,987 65, 608 66,546 69,651 307, 408 310,146 312, 750 310,956 85,375 86,796 82,165 84,477 57,205 57,218 57, 505 55,295 90,388 93,098 91,599 91, 281 62,638 64,635 66,692 67,913 172,543 169,480 165,806 166,079 510, 336 511,833 533,398 619,074 49,046 49,173 50, 526 61,974 106,895 103,065 113,714 125,278 45,836 47, 727 46,022 60, 469 46,374 45, 750 46,842 58,966 44,448 45,444 48,936 53,572 19, 530 21,176 22,183 24,851 62,006 64,538 62,133 76,128 29,893 30,054 33,002 36,224 10,957 10,874 11, 620 12,309 32, 568 32,056 33,424 36,301 28, 517 28,376 28,830 33,481 34,266 33,600 36,166 39,521 112,246 112,316 112,328 113,466 8,004 8,004 8,008 8,008 30,165 30,172 30,172 30, 531 10, 510 10, 510 10, 510 11,068 12, 735 12,735 12,735 12,951 5,901 5,937 5,940 5,915 4,591 4,587 4,587 4,595 15,405 15, 452 15,458 15,464 5,090 5,086 5,086 5,102 3,272 3,270 3,270 3,270 4,331 4,333 4,331 4,332 4,139 4,131 4,131 4,130 8,103 8,099 8,100 8,100 217,837 217,837 217, 837 217, 837 16, 382 16,382 16,382 16,382 58, 749 58, 749 58, 749 58,749 20, 059 20,059 20,059 20,059 22,462 22,462 22,462 22,462 11,701 11, 701 11, 701 11,701 8,950 8,950 8,950 8,950 30,426 30,426 30, 426 30,426 9,971 9,971 9,971 9,971 7,497 7,497 7,497 7,497 8,977 8,977 8,977 8,977 7,592 7,592 7,592 7,592 15,071 15,071 15,071 15,071 208 FEDERAL RESERVE BULLETIN MARCH, 1925 FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued LIABILITIES—Continued [In thousands of dollars] Total All other liabilities: Jan. 28 10,323 Feb.4 9,978 Feb. 11 10,502 Feb. 18 „ 10,494 Total liabilities: Jan. 28 4,800,269 Feb. 4 4, 809,918 Feb. 11 _ 4,830,182 4,916,882 Feb.18 Boston New York Philadelphia Cleveland St. Atlanta Chicago Louis Richmond Minne- Kansas City apolis San Francisco Dallas 309 277 337 353 2,194 2,121 2,321 2,351 224 232 216 271 915 840 863 862 603 606 582 617 631 607 613 598 1,525 1,468 1,525 1,537 434 407 504 478 884 892 917 913 440 450 446 436 755 733 785 730 1,409 1,345 1,393 1,348 403,460 401, 282 411,269 425,455 1,431, 571 1,437,575 1,439,091 1,442,437 356,287 359, 214 361,446 380,099 448,427 445, 681 449,718 460, 855 209,117 209,091 211,545 217, 527 239,160 240,096 242,632 249,103 599,959 602, 535 602,008 613,126 184,851 186,172 183,795 189,426 146, 540 146, 723 147,674 147, 205 203,550 205, 732 205,285 207,616 151,717 152,733 154,364 159,745 425, 630 423,084 421,355 424,288 76.7 78.2 75.9 76.9 79.8 76.4 74.6 75.2 82.3 79.8 81.0 81.0 72.3 72.0 73.3 71.0 82 5 8&0 86.2 82.0 86.0 88.9 89.3 88.0 77.0 78.0 78.3 79.1 76.1 76.9 76.1 76.9 81.5 83.1 83.2 81.4 73.9 75.4 74.7 74.2 68.3 69.2 70.4 73.3 75.4 74.8 74.0 75.5 13,646 13, 029 12,198 12,860 4,729 4,531 4,374 4,474 5,438 5,211 5,030 5,145 2,743 2,628 2,537 2, 595 2,081 1,994 1,925 1,969 7,046 6,752 6,517 6,666 2,364 2,266 2,187 2,237 1,655 1,586 1,531 1,566 2,081 1,994 1,925 1,969 1,797 1,722 1,662 1,700 3,594 3,444 3,324 3,400 169,969 157,441 152, 745 158, 017 44,094 39, 768 26,592 34,036 17,340 20,360 16,989 23, 772 19, 635 18, 699 17, 775 16,816 21, 712 20, 654 20,147 19, 529 14, 675 15, 008 14,048 12, 886 8,055 7,752 7,956 7,173 2,878 2,536 2,944 2,499 7,377 7,289 7,132 7,466 8,104 6,764 6,835 6,910 58, 745 53, 528 52,386 52, 607 MEMORANDA Ratio of total reserves to deposit and Federal reserve note liabilities combined (per cent): Jan. 28 Feb. 4 Feb.11 Feb. 18 Contingent liability on bills purchased for foreign correspondents: Jan. 28 Feb. 4 Feb. 11— Feb. 18 Own Federal reserve notes held by Federal reserve bank: Jan.28 Feb. 4 Feb. 11 Feb.18 78.0 77.4 76.9 77.0 47,174 45,157 43, 210 44,581 388,857 365,582 341,976 358,841 16,273 15, 783 16,427 17,130 FEDERAL RESERVE BANKS—MATURITY DISTRIBUTION OF BILLS, CERTIFICATES OF INDEBTEDNESS, AND MUNICIPAL WARRANTS [In thousands of dollars] Within 15 days Total Bills discounted: Jan. 28 Feb. 4 Feb. 11 Feb. 18 Bills bought in open market: Jan. 28 Feb. 4 Feb. 11 Feb 18 United States certificates of indebtedness: Jan. 28 Feb. 4 Feb.11 - . . . Feb. 18 Municipal warrants: Jan 28 Feb. 4 F e b . 11 F e b . 18 . 31 to 60 days 16 to 30 days 61 to QO 1 F r o m 9 1 days days to 6 aays | months 273, 692 322,367 331, 806 342,471 202,035 253,097 264, 095 264, 345 17,691 18,292 18,976 20, 229 28, 531 26,847 24,611 27, 716 15,069 14,393 1 14,345 ! 20,213 | 9,031 8,211 8,131 8,137 307, 767 308,004 324, 647 311, 747 90, 251 93, 789 108, 570 107, 286 78, 374 85, 541 83, 785 71, 762 96, 502 83, 259 75, 542 75, 660 34,973 I 40,048 S 52,488 ! 52,551 j 7,667 5,367 4,262 4,488 38, 225 40,360 40, 592 30,178 14 14 617 14 196 196 296 286 285 9 9 9 8 491 ' i i 9 9 8 8 1 i i 3,022 8,165 3,022 3 022 Over 6 months 1,335 1,527 1,648 1,831 34, 697 31, 699 36, 668 26,651 209 FEDERAL RESERVE BULLETIN MARCH, 1925 FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS fin thousands of dollars] Net amount of Federal reserve notes received from Comptroller of Currency: Jan. 28 Feb. 4 Feb. 11 Feb. 18.._. Federal reserve notes on hand: Jan. 28 Feb. 4 Feb. 11 Feb. 18 Federal reserve notes outstanding: Jan. 28 Feb. 4 Feb. 11. Feb. 18 Collateral security for Federal reserve notes outstanding: Gold and gold certificatesJan. 28 Feb. 4 Feb. 11 Feb. 18 Gold redemption fundJan. 28 Feb. 4 . . . . Feb. 11 Feb. 18 Gold fund—Federal Reserve Board— Jan.28.. Feb. 4 Feb. 11 Feb. 18 Eligible paper— Amount requiredJan. 28 Feb. 4 Feb. 11 Feb. 18 Excess amount held— Jan. 28 Feb. 4 Feb. 11 Feb. 18 Minne- Kansas Dallas apolis City 87, 803 87, 270 86,007 87,746 87,096 86, 850 87,161 104,096 103, 780 103, 263 103,178 75,452 74,652 73, 791 73,031 318,183 314, 217 312,405 311,476 259. 537 259', 137 259,137 259,137 25, 660 25, 660 25, 660 25, 660 18,143 17, 588 17,041 16, 741 29, 873 29, 673 29, 623 29,423 19, 272 20, 622 20, 622 20, 222 65,200 65, 200 65,200 64,700 197,864 195, 513 193, 764 191,501 62,143 61,610 61,023 60,347 69,603 69, 508 69, 809 70,420 74,223 74,107 73,640 73, 755 56,180 54,030 53,169 52, 809 252, 983 249,017 247,205 246, 776 12,175 12,175 12,175 11, 675 13,052 13,052 13,052 13,052 5,151 5,121 5,076 5,051 3,358 2,825 3,238 3,598 1,393 1,742 1,497 1,807 4,819 4,303 3,586 4,601 3,708 2,908 3,047 3, 286 15,089 14, 744 14,362 14,078 133,000 160, 644 136,000 160, 644 136,000 160, 644 136,000 160, 644 38,000 38,000 37,000 36,000 53, 500 52, 500 52, 500 52, 500 56, 360 56,360 56, 360 54,360 15, 500 15, 500 14, 500 13,500 187, 230 183, 509 180,939 179, 394 32,069 29, 748 28,044 25, 806 8,610 8,610 8,610 9,109 1,658 2,214 2,760 3,061 13,044 13,444 13, 694 14, 794 22, 461 21, 111 21, 111 20,012 50, 664 50, 764 51,904 53,304 35,887 37, 659 39, 587 36, 812 19,058 19, 250 18, 066 21,125 1,865 1,472 955 2,525 4,080 3,136 2,335 2, 767 2,322 3,043 1,693 1,270 11, 615 13,513 14,180 7,640 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago 3,088,368 3,063,692 3,049, 551 3,053,445 267,972 264,726 261, 593 267, 970 838,040 833,764 830,908 830,272 239,556 235,551 238,163 241, 937 267,729 265,317 262, 713 262,188 121,376 120,036 118,645 117, 664 223,014 222, 633 221, 636 221/923 457,401 454, 650 452, 901 450, 638 1,015,200 1,007,725 993,913 995, 714 66,150 58,050 52, 650 57,150 329, 540 329, 540 329,540 325, 940 46,000 45, 600 49,800 51, 800 67, 550 68,400 57,460 57, 560 25,444 25.444 25, 444 25.445 62, 831 62,811 61, 736 61, 936 2,073,168 2,055,967 2,055, 638 2,057,731 201,822 206,676 208, 943 210,820 508, 500 504, 224 501,368 504, 332 193,556 189,951 188,3"63 190,137 200,179 196,917 205, 253 204,628 95, 932 94,592 93,201 92, 219 160,183 159,822 159,900 159, 987 281, 849 281, 564 281, 516 282, 516 35,300 188, 531 35,300 186, 746 35,300 186, 698 35,300 186, 698 6,000 6,000 6,000 6,000 8,780 8,780 8,780 8,780 107, 412 102, 970 108, 767 105, 841 12, 785 9,539 16,406 13,383 29, 516 29,451 29,400 29,362 10, 739 11, 735 13, 547 11,320 11,637 11,225 11,620 11, 296 1,663 3,323 1,932 3,950 1,341,418 1, 341,697 1, 322,127 1,313, 582 102,000 112,000 102,000 102,000 226,000 226,000 226,000 226,000 142, 389 137,389 132,389 132, 389 150,000 150,000 150,000 150,000 76,795 73,795 73, 795 70, 795 342,489 329, 736 343, 228 355, 792 51, 737 49, 837 55, 237 60,137 64,453 62,027 59,270 62, 272 34,428 34,827 36, 427 40, 428 29, 762 26,912 34, 853 34, 552 17,474 17,474 17,474 17,474 16,129 12, 768 13,844 14,843 214, 821 266, 292 278,145 269,401 14, 255 71, 525 10, 693 113,491 13, 474 139,201 6,956 130,076 3,467 7,510 7,121 1,915 38, 543 45,460 33,120 42, 231 9,333 2,871 2,777 1,220 1,914 3,500 5,000 5,000 5,000 6,693 14,170 San Francisco St. Louis Total 7,554 6,054 5,056 4,144 14,511 14,511 14,511 16,011 210 FEDERAL, RESERVE BULLETIN MARCH, 1925 FEDERAL RESERVE BANKS—EARNING ASSETS HELD AND EARNINGS THEREON, JANUARY, 1925 [In thousands of dollars] Total HOLDINGS ON JAN. 31, 1925 Total earning assets Bills discounted for members Bills bought in open market United States securities Foreign loans on gold All other earning assets San New Phila- Cleve- RichSt. Minne- Kansas Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Francisco 1,028,903 ,94,4571 296,092 311,885 313,006 390,953 10,500 2,559 25,948: 113,350 43,595 66,311 24,914 113,376 I 3,055 Bills Discounted Customers' paper secured by Government obligations Member bank collateral notes: Secured by Government obligations Otherwise secured Commercial, agricultural, and livestock paper, n.e.s Trade acceptances, domestic Total discounted bills Bills Bought Bankers' acceptances based on— Imports Exports _ Domestic transactions Dollar exchange All other Trade acceptances—foreign, imports _- 272 272 Total purchased bills 313,006 77,263 118,318 32,065 21,796 131,782 39,905 33,103 38,645 45,350 1,220 26,531 1,433 3,498 603 13,385 4,583 3,366 462 345 222 72 27 31,110 17,338 25,733 1,032 2,050 38,002 8,079 31,834 21,138 60,382 10,169 1,564 519 25,638 44,274 43,845 103,468 4,162 5,071 13,078 25,151 474 500 2,706 22, 750 17, 990 10,438 52,301 39,931 798 18 30 150 1,148 3,631 1,967 4,634 176 21,093 374 1,035 211; 58 168,415 45,623 13,896; 75,207 31, 688 19,970 5,945 21, 924 949 6,157 2,665 665 1,006 22,147 3,637 10 200 126 831 60 94,063 2,749 11,6 1721 6,301 96 5,100 95 9,231 654 17,081 406 11,388 254 15,135 634 4,169 249 3,825 11 4,142! 1, S 311,885 25,948| 113,350 31,110 33,103 26,531 13,385 38,002 8,079 4,162 5,071 2,706 10,438 119,538 111, 751 75, 60£ 5,226 611 20,321 11,419 11, 822 33 ! 5,625 6,627 4,816 270 13. 695 5,810 451 50 12 1,371 188 3,209 1,186 9,778 8,950 12,437 9,397 3,736 377 5,188 5,474 2,164 252 8,513 9,102 4,674 461 24,444 18,186 8,946 725 43,595! 66,311 17, 338 38, 645 1,433 4,583 31, 834 21,138 13,078 22, 750 52,301 105, 797 100,212 19, 033 20,077 8,359| 21,222 6,974 6,107 10, 052 11,286 1,462 1,518 15,848 14 579 7,153 8,227 3,854 4,221 6,413 7,697 14,931 16,996 106, 997 16, 203 25,012 4,257 17,307 1,433 1,407 5,758 5,003 8,640 20,374 75, 537 273,995 41,421 2,472 12,440 17, 550 91,879 4, 892 9,057 1,345 22,070 2,318 11,126 26, 519 7,705 1,340 1,913 245 1,561 1,112 663 19,461 36,158 4,763 1,263 8,737 169 9,685 10,563 84f 7,941 14,617 2,593 3,718 13,097 1,17; 3,185 29,750 6,996 390,953 24,914 113,376 25, 733 45,350 3,498 3,366 60, 382 10,169 21,093 25,151 17,990 39,931 1,265 4,059 25,322 14,719 6,822 3,421 138, 645 42,430 35,953 8,790 31,407 20, 748 70,067 12,489 403 1,218 28,183 4,715 6 23 160 297 49, 737 5,032 49,431 111, 314 2,976 11,681 24,191 51,853 21,953 47,147 311 633 19,114 25,680 18,643 1,991 611 Purchased Bankers' Acceptances, by Classes of Acceptors National banks__ Other member banks Nonmember banks and banking corporations United States Securities United States bonds Treasury notes Certificates of indebtedness Total United States securities _-. DAILY AVERAGE HOLDINGS DURING JANUARY 1,072,077 101,042 294, 557 74,027! 124,709 Total earning assets 1 267,424 19,657 76,094 26,100 34,819 Bills discounted . 328, 644 50, 841 73,129 17,386| 36,696 Bills bought 465, 246 30, 544 142,955 27,693 52,225 United States securities_ 8,224 2,379 814 Foreign loans on gold EARNINGS DURING JANUARY 2,97! Total earning assets i 257 780 349 220 806 58 194 104 Bills discounted 78 752 111 166 91 Bills bought... 414 152 United States securities _ 1,386 6 Foreign loans on gold 21 ANNUAL RATE OF EARNINGS 3.27 Total earning assets * 2.99 3.50 3.1: 3.29 3.55 Bills discounted 3.50 3.50 3.00 3.50 2.70 2.57 2.67 2.6' 2.92 Bills bought 3.51 3.38 4.05 3.41 3.43 United States securities. 3.00 3.00 3.00 3.00 Foreign loans on gold 107 92 3 11 1 3.86J 4.00 3.04 3.27 3.00l 3.62 4.00 2.95 3.39 3.00 414 122 72 217 3 114 30 48 35 1 3.52 4.00 2.70 3.65 3.00 3.17 4.00 2.72 3.34 3.00 4.08 2.32 3. 76 3.00 14, i 29, 533 372 142 17 32 90 1 133 10 55 67 1 35 118 133 2 3.36 4.00 2.66 3.59 3.00 3.16 4.00 2.68 3.57 3.00 3.05 3.50 2.69 3.33 3.00 1 Including municipal warrants, as follows: Minneapolis, average daily holdings, $5,462; earnings, $18; annual rate of earnings, 3.97 per cent; also including Federal intermediate bank debentures, as follows: Philadelphia average daily holdings, $2,033,870; earnings, $5,788; annual rate of earnings, 3.35 per cent; Kansas City, average daily holdings, $500,000; earnings, $1,451; annual rate of earnings, 3 42 per cent. * Less than $500. MARCH, 1925 211 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANKS—VOLUME OF DISCOUNT AND OPEN MARKET OPERATIONS DURING JANUARY, 1925 [Amounts in thousands of dollars] Total Boston New York San Phila- Cleve- RichSt. Minne- Kansas delphia land mond Atlanta Chicago Louis apolis City Dallas Francisco Volume of Operations Total discount and openil, 735,109 market operations Bills discounted for member banks 1,488,088 182,897 Bills bought in open market.. Bills bought from other Fed21 eral reserve banks United States securities 59,094 bought in open market 4,500 Foreign loans on gold 9 Municipal warrants purchased 88,184 1,002,939 194,649 182,027 73,039 14,052 894,806 81,715 166,232 69, 327 11, 721 14,102 61, 265 28,846 128,120 33,890 10,935 12,801 17,902 73,551 23, 921 108,927 2,180 14,507 23,273 10,082 2,485 4,708 5,995 5,633 11,101 42,949 29, 296 8, 283 158 9 1,900 198 997 171 964 342 17 18 27 772 2,003 31,050 7,905 1,192 3,828 60,400 534 21 1,093 37,476 1,309 540 38 263 450 1,175 518 70 261 2,547 198 4,016 670 310 225 72 188 50 29 1 709, 591 64, 541 123, 602 41,515 179,808 14, 064 32,036 7,577 5,247 3,066 9,875 10,706 3,551 3,366 98,850 315 12,006 384 1,029 219 3,314 60 9,934 1,227 1,317 Bills Discounted Customers' paper secured by 980 Government obligations Member bank collateral notes: Secured by Government obligations 1,134, 534 Otherwise secured 247, 737 Commerical, agricultural, and livestock paper, n. e. s 100,193 Demand and sight drafts (based on agricultural products) . . 2,803 1,841 Trade acceptances, domesticTotal bills discounted... 1,488,088 Average rate (365-day basis)— 3.53 per cent . . 8.37 Average maturity (in d a y s ) . . Total reduced to a common maturity basis (exclusive of 1,485, 285 demand and sight drafts) 100.0 Per cent of total Number of member banks on 9,674 Jan. 31 Number of banks accom2,554 modated during the month. 26.4 Per cent accommodated.. 44, 713 27, 592 2 194 73,039 3.50 11.28 98,490 6.6 122 44 645 414 894, 806 81,715 166, 232 60,400 3.00 4.42 3.50 12.14 3.50 8.12 4.00 14.04 16, 594 223 137 9,615 103 36 118 827 121 10 23,921 108,927 23, 273 2,485 4,708 5,633 42,949 4.00 30.60 4.00 68.81 4.00 38.72 4.00 30.71 3.50 15.32 20,436 21, 787 14,626 14 1 5 10 78,464 5.3 4.00 39.59 4.00 15.58 473,103 118, 604 161,384 101, 347 112,123 202, 826 82,095 31.8 8.0 10.9 6.8 13.7 55 7.5 1 648 421 859 744 870 625 516 1,418 629 908 1,080 837 767 161 38.2 312 36.3 329 44.2 284 32.6 243 38.9 182 35.3 472 33.3 175 27.8 86 9.5 111 10.3 39 4.7 160 20.9 10, 250 3,792 50,894 16, 599 1,711 8,770 2,821 10, 824 2,863 25 509 7,812 2,070 4,889 986 9,198 1,688 22,721 6,211 415 1, 573 607 6,921 7,351 130 235 200 120 215 364 2,180 14, 507 10,082 5,995 11,101 29,296 869 514 4,242 4,113 3,970 1,810 3,585 3,645 2,833 2,680 1,202 2,104 4,683 2,187 3,601 372 19 9 630 10,227 6,311 11, 235 269 1,156 Bills Bought in Open Market Bankers' acceptances: Foreign Domestic Dollar exchange . Trade acceptances—foreign... 133, 877 45,497 3,400 Total bills bought 182, 897 14, 052 69,327 11, 721 14,102 Distribution by rates charged (360-day basis): 2% per cent-2J^5 per cent-3 per cent 3M$ per cent-334 per cent 3/^ per c e n t s ' per cent 4 per cent 45,941 29, 969 99, 224 2,689 4,008 1,363 3,069 8,987 170 14,096 4,729 49,809 82 43 599 10, 766 233 4,153 3,600 5,385 125 433 765 74 Average rate (365-day basis)— percent Average maturity (in d a y s ) . . Total reduced to a common maturity basis __. Per cent of total 10 123 123 534 534 30 544 41 26 80 56 797 3.01 39.19 3.00 38.89 3.00 21.90 3.04 76.90 3.02 55.87 3.04 41.03 3.44 29.26 3.01 53.81 2.95 48.12 2.96 47.35 3.01 50.04 3.00 41.76 182,897 100.0 13,945 7.6 38, 733 22,999 21.2 12.6 20,102 11.0 559 .3 1,627 .9 19,918 10.9 12, 379 6.7 7,243 4.0 14,174 7.7 31, 218 17.1 10, 258 18, 332 30, 504 263 53 1,122 70 200 3,816 310 7,002 560 721 1,382 57 461 5 16,139 21,337 1,367 913 267 500 410 681 497 959 59,094 1,093 37,476 263 1,175 70 2,547 4,016 310 8,283 1,900 997 964 213 98 797 United States Securities Bought in Open Market United States bonds Treasury notes •Certificates of indebtedness... Total United States securities bought 2 i Includes $500,000 Federal intermediate credit bank debentures. 212 FEDEBAL EESERVE BULLETIN MARCH, 1925 REPORTING MEMBER BANKS IN LEADING CITIES PRINCIPAL RESOURCES AND LIABILITIES, BY W E E K S [In thousands of dollars] Federal reserve district Total Boston New i PhilaYork | delphia Cleveland Richmond Number of reporting banks: 108: J a n . 21 736 108 J a n . 28-_ 740 108| Feb. 4 740 108; Feb. 11 739 Loans and discounts, gross: Secured b y U . S. Government obligations8,772 19, 355 6,412 73,398 10,424 J a n . 21__ 192,355 8,520 64,467 10, 5231 19,418 5,873 J a n . 28._ 181,332 8,639 66,192 10,462 i 18,934 6,413 Feb. 4 184,354 9,131 10,6371 19,132 8,487 70,828 Feb. 11 190,981 Secured b y stocks and bondsJ a n . 21_ _ 4,701,798 292,703 2,162,223 313,632 417,413 124, 271 Jan. 28 4,706,936 291,278 2,166,620 310,375 420,545 124,466 Feb. 4 4,745,246 292,459 2,200,084 314,1791 424,434 122,302 Feb. 11 4,742,220 298,060 2,175,753 315,317' 423,873 127,185 All other loans and discounts— i 357, 598 722,980 341,465 J a n . 21 1 8,192,860 666,492 2,619, J a n . 28__ I 8,163,152 661,254 2, 573,874 354, 676 724,459 346, 795 Feb. 4 8,183,713 662, 668 2,574, 604 354,307 726,375 348,877 Feb. 1 1 . 8,181,533 659,809 2, 538, 796 358,432 735,325 347,779 Total loans and discounts, 159,748 472,148 J a n . 21 13,087,013 967,967 4,854,936 681,654 1, J a n . 28. _ 13,651,420 961,052 J4,804, 961 675,574 1;,164,422 477,134 , 169,743 477,592 Feb. 4 . . |13,113,313 963,76614,840,880 678, 948 1, Feb. 11 113,114,734 966,356 4,785,377 684,38611,,178,330 484,095 U . S. pre-war bonds: 13.474 53,124 10, 568! 45,419 25,714 J a n . 21260,709 Jan. 28 261,018 13.475 53,122 10, 568 i 45, 231 25,714 9,568 32,050 25, 716 Feb. 4 232,192 10,658 44,417 9,568 32,031 25,341 Feb. 11 224,879 10, 683 37,674 U. S. Liberty bonds— 184,408 37,176 53,446 81,484 1,402,629 Jan. 21 53,401 174,938 37,793 Jan. 28 1 1,394,042 81,200 635,781 80,213 635,045 53,544 168, 503 38, 111 Feb. 4 1,389,377 79, 625 626,214 50,376 171,199 37,954 Feb. 1 1 . . 1,381,615 U . S. Treasury bonds: 26,474 5,013 17,531 170,352 26,421 Jan. 21__ 375,472 17,422 154,721 26,040 30,015 4,835 Jan. 28 365,913 17,125 156,557 15, 933 30,006 5,058 Feb. 4 360,192 16,832 147,135 14,497 29,313 4,925 Feb. 11 ! 349,133 U.S. Treasury notes: 56,081 2, 238, 676 20,941 Jan. 21 ! 520,150 21,058 55, 695 8,450 229,512 2,653 Jan. 28 510,421 21,024 55,806 8,701 228, 540 2,475 Feb. 4 509,432 21,0731 56, 385 8,552 239,189 2,357 Feb. 11 516,875 U. S. Treasury certificates: 444 7,452 8,146 1,764 84, 253 Jan. 21 150,713 430 7,449 8,167 1,763 58,324 Jan. 28 124,624 6,913 430 7,618 1,764 56,048 Feb. 4 119,542 7,065 430 7,518 1,753 56, 599 Feb. 11 118,562 Other bonds, stocks, and securities: Jan. 21 2,838,135 193, 621 1,,094,975 257, 540 348,915 64, 523 194,097 1:, 081,101 259, 502 348,920 63,645 Jan. 28 2,832,427 ., 072,759 256,172 355,462 62,054 194,004 1 Feb. 4 2,842,484 Feb. 11 2,841,013 193,860 1, 074,247 257, 732 348,319 61, 743 Total investments: Jan. 21 5,547,808 316,323 2, 279,870 376, 368 669,443 135, 563 Jan. 28 5,488,445 316,407 2,212, 561 378,018 662,966 135,070 Feb. 4 5,453,219 312,465 2,193,366 363,859 648,740 133,844 Feb. 11 5,432,077 311,30512,181,058 360, 764 644,312 132, 750 Total loans and investments: k 058,022 1,829,191 607, 711 ,134,806 1,0 Jan. 21 18,634,821 1, 284,290 7, 053, 592 1,827,388 612,204 459 7,017, 522 1,0 7, Jan. 28 18,539,865 1, 277,459 ,034,246 , , j j ,042,807 1,0 1 611,436 Feb. 4 18,566,532 1, 276,231 7, 6616,966,435J1,045,150 6966435J10 1,822,642 616,845 Feb. 1 1 . . . . 18,546,811 1, 277,661 Reserve balances with Federal reserve banks: 91,546 724,577 80, 535 117, 609 Jan. 21 1,602,152 95,818 759, 741 81,022 126,159 40, 237 Jan. 28 1,639,647 769,050 80,196 130,0201 41,284 Feb. 4 1,655,453 74,132 122,122 39,156 Feb. 11 1,651,126!' 96,103 774,169 St. Minne- Kansas San Atlanta Chicago Louis apolis City Dallas Francisco 100 100 100 100 25 25 25| 70 70 70 25J 7,547 7,643 7,658 7,453 32,706 33,209 33, 794 33,355 10, 694 11,447 12, 249 12,034 71,167 71,508 71,191 72,894 708,100 698,347 698,146 695,317 182,989 184,319 185,680 188,850 5,018 3,738 3,710 3,664 10,951 9,402 9,374 9,337 54,600 96,800 64,622 53,923 101,748 66,217 54,195 100,402 67,384 57,757 102,010 69,705 213,278 217, 590 214,790 215,499 2,831 2,819 2,786 2,733 4,247 4,273 4,143 4,190 367,218 1,200, 726 316,548 209,470 332,139 232, 564 826,345 367,57911,205,918 317, 579 212,318 334, 629 233,625 830,446 374,01311,213,792 313,742 208, 569 336,322 235,652 834,792 374,256 1,221,117| 314,800 206,124 445, 9321,, 941,532 510,231 446, 7301 , 937,474 513,345 452, 8621;, 945, 732 511,671 454, , 949,789 515,684 266,901 269,060 265.550 266,614 239,316 433,186 440,650 440,867 445,085 846,894 302,204 1:, 050,574 303,580 1,057,438 306,746 1, 058,956 312,685 1,071,730 14,958 15,058 14,968 15,078 21, 670 21, 671 20, 272 19,655 14,341 14,341 13,775 13,775 8,206 8,206 7,801 7,911 18, 248 18, 648 9,545 17, 545 9,535 17,744 25,003 25,000 25,877 25,884 8,611 10,120 8,623 7,973 163, 519 163,668 164,722 167,190 27,637 27,749 26. 387 25,348 26,539 25,917 25,920 25,932 42,771 14,035 42,934 13,981 43,166 13,985 43,078 14,263 124,513 126,560 131,158 132,463 2,839 2,499 2,511 3,111 49,133 51,2861 6,376 6,908 7,903 8,427 9,385 9,385 9,885 9,953 13,117 12,721 12,316 13,022 5,557 5,857 5,907 5,886 43,518 46,377 45,705 45,149 102,981 12,080 102,094| 12,061 12,066 11,978 18, 973 18,973 19,074 19,074 20, 835 20, 578 20, 540 20,499 9,457 9,450 9,477 9,176 26,490 27,910 26,454 26,807 2,494 1,987 2,486 2,857 2,037 2,037 l | 209 16, 596 17,2391 14, 639 14,059 1,658 1,651 1,620 1,713 6,320 6,320 5,720 5,720 2,97, 3,665 3,664 3,857 2,176 2,183 2,238 lr~' 16,892 15,396 16,900 16, 653 41,240 41,828 41, 288 41,459 416,129 419,976 433, 737 437,829 103,941 104,665 102, 796 101,886 36, 608 36, 651 36,907 37,240 72,330 72,147 73,073 72,193 21, 286 21, 535 21,277 20,198 187,027 188,360 192,955 194,307 72,179 73, 529 71,864 71, 687 769,784 773,781 787,445' 788,544 166,033 167,375 164,547 163,127 106,031 105,452 105,307 105,830 162,012 162,029 162, 304 162,184 70, 759 71, 654 70,429 69,253 423,443 429,603 439,049 441, 263 518, 111 2,711, 316 676, 264 372,932 520,259 2, 711, 255| 680, 720 374,512 524, 72612,733,177 676,218 370,857 526,290 2, 738, 333 678,811 372,444 595,198 602,679 603,171 607,269 372,963 375,234 377,175 381,938 , 474,017 , 487,041 , 498, 005 , 512,993 54,395 52, 242 57,081 56,513 32,913 28,799 31,154 32,694 110,989 107,206 41,040 38,085 37,473 37, 953 239,136 230, 515 228,647 235, 279 46,982 51,167 52,207 47,524 27,686 27, 524 27,493 28,275 107,007 213 FEDERAL RESERVE BULLETIN" MARCH., 1925 PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS—Continued [In thousands of dollars] Federal reserve district Boston Cash in vault: Jan. 21 Jan. 28 Feb.4 Feb. 11 Net demand deposits: Jan. 21 _ Jan. 28 Feb. 4 Feb. 11 Time deposits: Jan. 21 Jan. 28 Feb. 4 Feb. 1 1 . . . Government deposits: Jan. 21 Jan. 28 Feb. 4 Feb. 11 _ Bills payable and rediscounts with Federal reserve banks: Secured by XJ. S. Government obligationsJan. 2 1 . . . . Jan. 28... Feb. 4 Feb. 11 All o t h e r Jan. 21 Jan. 28 Feb. 4 Feb. 11 286,092 279,486 278,070 294,532 20,471 20,085 20,283 21, 293 New York Philadelphia 79,764 78,421 80,034 89,044 15,806 15, 759 14,931 17,813 Cleveland Richmond 31,012 29, 388 29,125 29,895 14,087 13,084 13, 589! 13, 659i Atlanta 11, 263 10,876 11, 043 11,002 Chicago St. Louis Minneapolis Kansas City San Dallas Francisco 54,891 53,005 52, 779 53, 955 7, 870! 7,444 7, 593! 7,406! 6,126 5,981 5, 625 5,! 12.122 12, 255 10, 941 12.123 10,693 10,428 10,495 10,615 21,987 22, 760 21, 632 21,867 416, 684 421,495 419,244 424,690 254,360 252,176 248,205 249,690 487,473 488,875 492,204 496,849 281, 643 279,282 283,065 286,599 783, 578 784,149 798,990 804,613 136,080 135,879 136,294 136,459 92,149 92,794 93,925 95,703 675,316 690,878 698,246 702,841 10,276 10,499 10,499 7,363 13,143,171 13,013,949 13,039,813 13,093, 391 896,871 5,808,806 887, 543 5, 717, 692 877,122 5, 725,113 885,766,5, 701, 992 765, 752 1, 019,139 759,I, "514' J1,., 014, 240 745,>, 319 1, ., 014, 724 749,>, 080 .,1, 022,483 364,430 366,8371 370,680 376,939! ., 751, 384 313,051 1, 309, I, 558 .,1732, 588 ! , 599 .,1,752,548 312, , 767, 508 327,, 182 L1. 4,868, 758 4,875,615 4,899, 797 4,924, 543 326,471 1,153,177 326,364 1,140,890 333,1,671 1,132,614 336,i, 622 1, 139,846 179,335 178,470 180,264 179,502 698,338 698,843 707,452 707,648 182,9331 183,234 185,780 186,733 189,219 189,460 189,737 189,950 920,549 921,035 923,669 930,133 212,366 214,156 213,701 213,603 102,825 103,612 104,444 105,503 3,711 3,703 3,703 2,939 21,276 21,276 21,276 21,000 7,286 7,281 7,281 6,469 1,850 1,854 1,853 1,602 657 2,142 2,143 2,172 1,648 488 57 57 57 10,430 15,629 14,501 10,315 150 200 15 234 57 1 67 18 50 1,900 5,465 5,650 1,650 4,125 4,939 3,218 2,930 877 699 593 488 406 904 614 145 46 269 203 2,403 2,311 2,081 1,297 1,614 1,334 1,194 8,273 135,454 135,670 133,850 113,437 26,079 26,080 26,080 22, 516 30,676 30,676 30,676 25,096 13,811 13,811 12,000 10,572 14,281 14,281 14,244 11,439 3,068 3,068 3,068 2,136 39, 568 97,083 153,265 129,933 1,300 3,360 1,760 2, ' 18,331 55,220 109,615. 97,485! 2,210 2,475 3,47, 3,155 3,020 13,145 16,364 12, 663 1,505 1,675 1,824] 1,4441 25,474 32,228 29,667 63,651 1,070 1,764 957 3,734 835 3,425 3,405 5,591 3, 4,214 4,807 6,411 7,756 7,941 6,399 2,750|_ 8,070] 4,8711 31,685| 75 "l79 R E P O R T I N G MEMBER BANKS IN 12 FEDERAL RESERVE BANK CITIES—BANKERS' BALANCES [In thousands of dollars] City Total (12 cities) Due to banks: Jan. 21 Jan. 28 Feb.4 Feb. 11 Due from banks: Jan. 21 Jan. 28 Feb. 4 Feb.11. 2, 550,924 2,435,488 2,525,869 2, 540,802 666,606 627,682 632,577 645,886 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minne- Kansas apolis City Dallas San • Francisco 142,4581 , 189, 521 1 3 4:, ,660 " - -1' ,130,659 139,1,779 1,181,823 132,!, 020 1,213,425 199,099 191,209 192,963 189,089 54,127 51,400 51,849 51,142 40,269 37,305 38,158 40,536 19,760 20,102 20,280 20,721 423,270 412,414 427,300 416,546 113,706 108,112 108,440 108,762 72,166 68,914 69,458 69,892 131,464 128,940 131,064 132,461 45,600 44,231 48,280 47,921 119,484 107,542 116,475 118,287 94,077 96,733 95,502 98,579 72,193 64,573 63,667 67,032 25,104 27,208 23,595 23,687 17,226 14, f 17,105 16,681 18,858 20,975 16,724 18,560 158,071 152,192 158,962 158,466 43,442 36,374 38,329 37,973 21,562 16,850 21,003 24,341 51,971 54,389 51,873 48,995 33,781 34,794 33,773 36,014 86,037 73,534 75,595 81,269 44,284 35,065 36,449 34,289 214 MARCH, 1925 FEDERAL RESERVE BULLETIN REPORTING MEMBER BANKS IN NEW YORK CITY AND CHICAGO—PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS [In thousands of dollars] Banks in New York City Jan. 21 Jan. 28 Banks in city of Chicago Feb. 4 Feb. 11 J a n . 21 J a n . 28 Feb. 4 F e b . 11 67 67 67 67 46 46 46 46 68,970 1,941,911 2,322,920 60,022 1,951,085 2,276, 797 61,250 1,979,355 2,277,464 65, 989 1, 950,125 2, 241,079 25,523 532,008 699,562 26,066 528,012 701,480 26,618 525,944 697,387 25,931 524,221 705,918 | 4,333,801 4,287, 904 4,318,069 4,257,193 1,257,093 1,255, 558 1,249,949 1,256,070 42,597 541,425 153,580 220,890 82, 640 829,683 42,595 538,023 138,248 211, 726 56, 711 814,021 34,440 538,549 139,999 210, 755 54, 435 807,962 27,147, 527,048 131,301 221,247 54,986 4,066 81,369 28,519 74, 557 10,996 200,021 4,067 81, 276 28, 525 73,600 11, 603 201,976 3,853 82,100 27, 993 75,148 9,142 216,720 3,838 83,187 27,800 71,360 8,552 220,861 Total investments 1,870,815 1,801,324 1,786,140 ! 1,768,277 399,528 401,047 414, 956 415,598 Total loans and investments.. 6, 204,616 6,089,228 6,104,209 6,025,470 1,656, 621 1,656,605 1,664,905 1, 671,668 702,173 64,227 5,185, 734 793,810 20,499 713,405 65,596 5,185, 759 785,148 20,499 720,061 72,241 5,153,810 791,012 16,279 170,595 28,386 1,183,392 454,119 16,096 159,620 26,507 1,171,409 454,812 16,096 158,145 27,001 1,178,314 456,408 16,096 156,473 27,320 1,171,996 460,354 14,343 39,150 6,228 91,200 3,528 77,300 30,277 870 173 2,965 840 190 1,420 100 45,378 ! 94,728 107,577 1,043 2,965 1,030 1,520 Number of reporting banks Loans and discounts, gross: Secured by United States Government obligations Secured by stocks and bonds All other loans and discounts Total loans and discounts United States pre-war bonds __ United States Liberty bonds. United States Treasury bonds United States Treasury notes United States Treasury certificates.. Other bonds, stocks, and securities. Reserve balances w i t h Federal reserve b a n k . . ! 670,832 Cash in vault ! 64,864 N e t demand deposits _ 5,267,842 T i m e deposits I 804,960 Government deposits ' 20,499 Bills payable a n d rediscounts with Federal reserve b a n k : \ Secured b y United States Government i obligations.. _ _ | 7,350 All o t h e r . . ! 1,011 Total borrowings from Federal reserve i bank.. _ _j 8,361 I ALL MEMBER BANKS—DEPOSITS. BY FEDERAL RESERVE DISTRICTS AND BY SIZE OF CITY Net demand deposits 1924 Federal reserve district _ Total Banks in cities and towns having a population of— Less than 5,000 5,000 to 14,999 15,000 to 99,999... 100,000 and over 1925 1924 1924 1925 1924 J a n . 23 N o v . 26 Dec. 24 J a n . 28 J a n . 23 Oct. 29 N o v . 26 Dec. 24 J a n . 28 1,385,832 6,348,865 1,144,321 1,483,196 570,215 516,106 2,411,790 668,086 475, 674 830,032 609,594 1,320,788 1,327,141 6,496, 559 1,151,727 1,486,119 585,396 540,472 2,352, 603 690,224 503, 546 1,299,657 6,527,806 1,129,471 1,468,404 581,375 561,575 2,344,909 710,319 493,540 858, 629 670,487 1,310,823 1,330,862 6,383,028 1,139,390 1,486,655 594,503 585,609 2,380,790 732,021 481,231 861,150 660,847 1,291,093 1,233,878 5,383,722 1,037,462 1,382,490 589,933 519,276 2,122,350 655,261 400,884 739, 111 624, 577 1, 253,902 704,918 2,026,426 753,331 1,263,367 482,159 350,041 1,682,211 431,116 416,047 298,851 159,889 1,106,225 694,406 2,066,104 765,488 1,269,256 483,033 350,961 1,723,047 436,085 420,176 300,293 158,722 1,128,308 685,226 2,018,700 759,663 1,245,613 478,845 348,636 1,729,770 429,809 425,748 296,288 158,107 1,150,727 702,350 2,041,042 777,518 1,272,991 17, 764,499 17,946,742 17,956,995 i 17,927,179 15,942,846 9, 674, 581 9,795,879 9, 727,132 9,878,624 8,693,793 1,678,287 1,066,959 2,093, 059 12,926,194 1, 076; 740 2,132,304 13,039,022 1, 689,928 1,080,944 2,144,113 13,042,010 1,633,480 1,039, 513 1,958,130 5, 043, 458 1,640,059 1,045,668 1,967,007 5,143,145 1,636,887 1,042,716 1,957,014 5,090,515 1,668,381 1,062,598 1,990,335 5,157,310 1,569,463 981,949 1,807,711 4,334,670 Oct. 29 Boston New York _ Philadelphia Cleveland. __ Richmond Atlanta Chicago... St. Louis Minneapolis Kansas City Dallas San Francisco Time deposits 641,603 1,322,964 1,673,199 1,081,342 2,170,162 |13,002,476 1,626,219 1, 073,144 2,046,474 11,197, 009 356,070 1,735,739 438,340 434,954 300,970 160,584 1,171,200 606,068 1, 699,871 664,436 1,142,992 443,304 318,538 1,564,897 398,521 409, 569 293,686 151, 263 1,000, 648 MARCH, 215 FEDEKAL RESERVE BULLETIN 1925 ALL MEMBER BANKS—CONDITION ON DECEMBER 31, 1924 ALL MEMBER BANKS (8,043 NATIONAL BANKS AND 1,544 STATE BANKS AND TRUST COMPANIES)—ABSTRACT OF CONDITION REPORTS ON DECEMBER 31, 1924, BY FEDERAL RESERVE DISTRICTS [In thousands of dollars] District District District District District District District District District District District District No. 1 No. 2 No. 3 No. 4 No. 5 No. 6 No. 9 No. 7 No. 8 No. 10 No. 11 No. 12 (419 (855 (828 (738 (871 (617 (766 (510 (1,408 (624 (885 (1,066 banks) banks) banks) banks) banks) banks) banks) banks) banks) banks) banks) Total United States (9,587 banks) RESOURCES Loans and discounts. Overdrafts United States Government securities.. Other bonds, stocks, and securities Total loans and investments Customers' liability on account of acceptances Banking house, furniture, and fixtures. Other real estate owned Cash in vault Reserve with Federal reserve banks Items with Federal reserve banks in process of collection. Due from b a n k s , bankers, and trust companies. Exchanges for clearing house, also checks on other banks in same place Outside checks and other cash items Red e m p t i o n fund and due from United States Treasurer United States securities borrowed 1.._. Other securities borrowed l Other assets Total. 542,019 5,899,017 ,289,050 L, 901,848 512 1,499 283 791 243,138 [, 323,614 258,029 386,624 L, 624,815 622,402 592,570 959,432 668 814,311 ,036,546 1,738 2,196 883,295 1,828 629,831 643 799,505 1,333 643,210 ., 767,537 20,165,601 2,303 1,914 15,708 137,000 81,419 526,141 135,632 143,873 151,171 101,266 363,112 3,902,793 130,698 102,962 655,289 205,593 132,465 128,879 43,805 316,384 4,942,486 173,293 8,848,945 2,169,764 !, 933,607 ,227,798 ,000,430 ,220,172 1,226,348 906,812 ,080,888 790,584 2,448,947 29,026,588 56,836 297,440 18,385 8,584 13,218 10,102 34,613 844 3,131 1 4,087 14,495 461,736 61,686 157,866 61,689 118,331 50,507 45,714 129,979 36,055 25,528 41,068 38,833 93,358 860,614 6,877 49,344 10,690 130,090 8,455 47,682 18,095 63,941 11,256 30,608 10,508 27,845 24,301 98,223 8,239 24,441 15,219 21,846 15,674 29,905 13,870 25,825 17,949 47,722 161,133 597,472 140,840 885,556 129,361 163,593 69,632 63,489 314,698 80,758 55,513 63,221 214,662 66,350 64,127 45,310 84,666 44,452 8,920 37,635 34,196 214,390 274,380 2,339,488 59,350 1,935,114 203,212 119,997 169,935 109,057 161,860 56,178 ,416,754 102,551 65,708 365,987 153,630 151,229 313,260 164,529 2,227,569 35,304 724,926 66,722 54,217 32,186 26,547 138,430 28,828 12,891 24,959 18,052 9,172 32,350 5,713 8,690 4,410 6,528 17,827 3,753 6,813 7,341 4,332 26,737 133,666 2,661 4,912 2,946 5,000 3,194 2,153 4,538 2,139 2,058 2,297 2,717 36,284 170 5,741 6,470 4,519 465 68 19,087 14,982 123 15,961 2,238 34,423 60 4,336 11 4,421 59 25,125 2,541 4W, 649 418 296,303 6,133 50 10,881 3,798 4,318 2,762,045 12,498,780 2,712,216 3,629,945 1,603,848 1,392,821 5,476,5651,618,402 1,213,434 1,651,000 1,217,071 3,210,740 38,986,867 LIABILITIES Capital stock paid in. Surplus fund Undivided profits, less expenses and taxes paid. Due to Federal reserve b a n k s . . Due to banks, bankers, and trust corn- 141,561 110,203 58,936 70,135 37,001 95,538 44,869 93,04^ 42,442 105,395 27,03: 17,914 18,250 17,963 48,076 786,759 1,751 228 42 2,070 592 43,648 94,570 291,912 56,983 219,728 125,134 492,359 505,620 138,723 228,611 212,830 218,485 112,277 83,832 72,226 269,144 74,404 82,026 32,905 21,419 14,32C 5,122 2,312 10,676 1,538 184,326 2,037,481 85,845 1,707,486 170,285 1,650,222 238,277 278,955 138,142 170,680 622,272 222,398 169,065 359,079 207,109 277,831 4,504,315 Certified and cashiers' or treasurers' 24,941 777,158 16,954 51, 778 16,037 10,334 46,470 13,049 14,178 32,485 29,558 49,489 1,082,431 checks outstanding. , 539,11616,684i 6,684,038 575,"" 2,189,977 L89,977 663,025 424,828 747,239 608,250 1,239,116 Demand deposits... 1,303,345 5,960,703 1,076,816 1,., 314,913 580,517 575,309 ' 685,8755 2,011,599 774,356 l!, 246,764 483,072 359, 373 1. 732,371 431,261 430,315 295,985 150,856 1,202,911 9,804,738 Time deposits United States depos6,382 18,441 242,482 6,321 12,472 7,904 35,548 13,823 22,816 6,538 36,150 50,538 _.,.. 25,549 its 2,225,584 10,464,541 2,137,074 !, 917,538 1,240,916 1,125,138 4,628,389 1,343,784 1,044,716 1,441,368 1,004,225 2,788,380 32,361,652 T o t a l deposits Bills payable (including all obligations representing money borrowed o t h e r 4,452 13,884 289,253 36,014 26,126 89,763 42,733 27,824 11,104 24,789 8,859 2,146 1,559 than rediscounts).. Notes and bills rediscounted (including acceptances of other banks and foreign bills of exchange or drafts sold with indorsement) 19,469 22,691 52,24S 190,592 12,417 18,675 27,078 5,936 4,238 2,04C 7,407 367,490 4,697 Cash letters of credit and travelers' 42 373 48 776 checks outstanding 17, or 21,709 250 2,048 35 58 205 Acceptances executed 56,1L 292,521 8,708 12,667 16,54C 35,247 4,062 15,524 460,383 for customers 857 2,825 64 15,249 216 FEDERAL RESERVE BULLETIN MARCH, 1925 ALL MEMBER BANKS (8,043 NATIONAL BANES AND 1,544 STATE BANES AND TRUST COMPANIES)—ABSTRACT OF i CONDITION REPORTS ON DECEMBER 31, 1924, BY FEDERAL RESERVE DISTRICTS—Continued [In thousands of dollars] District District District District No. 2 No. 3 No. 4 No. 1 (738 (855 (871 (419 banks) banks) banks) banks) District No. 5 (617 banks) District District District District District No. 6 No. 7 No. 8 No. 9 No. 10 (510 (624 (1,408 (885 (1,066 banks) banks) banks) banks) banks) Total United States (9,587 banks) District District N o . 11 No. 12 (828 (766 banks) banks) LIABILITIES—COn. Acceptances executed by other banks for account of reporting banks National bank notes outstanding United States securities borrowed Other securities borrowed._Other liabilities Total 1 3,862 24,662 4,150 29 1,468 621 391 37,322 52,444 96,453 57,914 98,881 61,374 42,610 90,285! 42,492 32, 744 40,534 45,279 53,323 714,333 547 2,008 815 17,344 4,927 1,691 9,246 6,720 261 1,425 1,153 1,880 48,017 306 l,833i_ 1,294 404 2, 287 100 305 76 50 27 540 180 683 5,946 2,134 2,412 38,328! 6,540 11,125 13,454 54,046 1,113 2,098 2,210 10,245 149,036 5,331 2, 762,045 12,498,780 2,712,216 3,629,945 1,603,848J1, 392,821 5,476, 565 1,618,402 1, 213,434 1, 651,000 1,217,071 3,210, 740 38,986,867 Exclusive of securities borrowed by national banks. ALL MEMBER BANKS (8,043 NATIONAL BANKS AND 1,544 STATE BANKS AND TRUST COMPANIES)—ABSTRACT OF CONDITION REPORTS ON DECEMBER 31, 1924, BY CLASSES OF BANKS [ I n thousands of dollars] Central reserve city banks (66 banks) Chicago (24 banks) Total (90 banks) Other reserve city banks (549 banks) 4,381,023 1,104 974,021 797, 537 6,153,635 294,680 89, 521 2,866 72,627 738,911 159,458 73, 644 1,163,949 378 180,131 162,115 1,566,573 32,833 26,926 74 25,520 162,709 40,935 129,600 5,544,972 1,482 1,154,152 959,652 7,660, 358 327,513 116,447 2,940 98,147 901,620 200,393 203, 244 7,161,802 4,421 1,353,239 1,463,637 9,983,999 119,628 339,382 52,648 178,538 726,462 419,234 968,035 7,458,827 9,805 1,395,402 2,519,197 11,383,331 14,595 404,785 105,545 320,787 599,487 105,299 1,168, 209 4,942,486 39,936,588 461, 736 860, 614 161,133 597,472 2,227,569 724,926 2,339,488 19,801,388 18,510 3,894,620 4, 736,126 38,450,644 330,716 843,077 158,641 527,889 2,121,428 613,494 2,430,462 1,390,441 24,163 2,034 88, 531 6,547 142 1,478,972 30,710 2,176 285, 272 9,287,302 2,044, 289 1 309,170 11, 331,591 367,398 71,330 8,610 11,796 412 113,617 13,360,189 88,744 31,626 25,498 7,291 2,128 37,862 14, 295,087 1,935,114 133, 666 36,284 19,087 2,541 460,649 38,986,867 1,091,300 100,551 36, 701 18,060 1,954 378,953 37,103,870 685,541 584,878 239,631 10,232 2,041,306 204,887 5,440,203 3,435,102 146,219 11,277,949 926,240 655,326 296,872 33,151 515,934 94,220 5,673,425 5,252,267 49,948 11,618,915 2,037,481 1,707,486 786, 759 43,648 4,504,315 1,082,431 16,684,038 9,804,738 242,482 33,361,653 2,034,943 1,682,646 876,516 36,508 4,453,412 653,342 15,729,597 9,597,395 301,803 39,773,057 New York KESOURCES Loans and discounts ... Overdrafts United States Government securities—_ Other bonds, stocks, and securities. Total loans and investments _ Customers' liability on account of acceptances B anking house, furniture, and fixtures Other real estate owned _ Cash in vault Reserve with Federal reserve banks.. Items with Federal reserve banks 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 United States Treasurer.. United States securities borrowed * Other securities borrowed 1 Other assets Total. LIABILITIES Capital stock paid in Surplus fund Undivided profits, less expenses and taxes paid Due to Federal reserve banks Due to banks, bankers, and trust companies Certified and cashiers' or treasurers' checks outstanding... Demand deposits Time deposits United States deposits Total deposits Bills payable (including all obligations representing money borrowed, other than rediscounts) Notes and bills rediscounted (including acceptances of other banks and foreign bills of exchange or drafts sold with indorsement) Cash letters of credit and travelers' checks outstanding Acceptances executed for customers Acceptances executed by other banks for account of reporting banks National bank notes outstanding United States securities borrowed Other securities borrowed _ Other liabilities _ Total....: Ratio of reserve with Federal reserve bank to net deposit liability (per cent) * Exclusive of securities borrowed by national banks. Total United States Country banks (8,948 banks) Dec. 31, 1924 (9,587 banks) 20,165,601 15,708 3,902,793 Oct. 10, 1924 (9,635 banks) 336,300 379,205 200,093 265 1, 547,432 759,540 4,616,670 775,270 28,591 7,737,768 399,643 23,784 953,740 342,099 17,724 1,736,999 425,700 467,282 250,256 265 1,947,075 783,324 5,570,410 1,117,369 46,315 9,464,758 43,651 225 43,876 104,971 140,406 289,253 167,483 180,259 16,964 290,128 7,125 1,897 34,472 187,384 18,861 324,600 85,482 2,627 122,771 94,624 221 13,012 367,490 21,709 460,383 265,264 22,514 328,526 24, 294 39,884 995 1,638 2,843 9,384 168,637 26,072 2,006 47,761 9,287,302 1 31,458' 2,044,289 25,932 42,727 995 1 79,219 11,331,591 1,331 50,915 13,360,189 20,950 4,614 18,902 14,295,087 37,322 714,333 48,017 5,946 149,036 28,532 723,039 46,786 » 5,535 150,029 37,103,870 13.3 13.4 13.3 10.1 7.5 89,400 88,077 50,163 10.1 10.0 217 FEDERAL RESERVE BULLETIN MARCH, 1925 S T A T E BANK AND T R U S T COMPANY M E M B E R S — A B S T R A C T O F C O N D I T I O N R E P O R T S O F BANKS O N D E C E M B E R 3 1 , 1924, BY FEDERAL RESERVE D I S T R I C T S [In thousands of dollars] District No. 1 (36 banks) District No. 2 (144 banks) District No. 3 (72 banks) District No. 4 (119 banks) District No. 5 (62 banks) District No. 6 (128 banks) District No. 7 (353 banks) DisDisDisDistrict trict trict trict No. 8 No. 9 No. 10 No. 11 (100 (183 (132 (33 banks) banks) banks) banks) District No. 12 (182 banks) Total United States (1,544 banks) RESOURCES , 360,927 336,640 Loans and discounts _.. 506,006 2,917,023 281,723 893,647 154, 768 238 1,061 1,054 643 98 152 Overdrafts _. 957 191 United States Government 7,341 233,051 45,136 securities _ 70,413 584,669 65,178 115,027 7,547 5,495 1,990 1,495 2,157 6,507 3,009 975 13,193 Stock of Federal reserve banks Other bonds, stocks, and securities _ 110,926 665,576 179,315 216,434 22,884 29,932 349,717 83,828 Total loans and invest689,693 4,181,418 539,333 1,,239,841 186,326 328,6911, 950,845 468,655 ments Customers' liability on ac5,498 8,958 158,609 91 23,590 278 count of acceptances 8,023 4,351 Banking house, furniture, 53,199 14,771 12,944 49,301 81,345 16,228 17,683 and fixtures 6,796 2,281 1,995 5,049 Other real estate owned 3,123 3,392 4,723 10,462 2,958 1,370! 10,956 126 Gold and gold certificates 433 239 452 653 33,389 4,515 14,110; 47,990 All other cash in vault 8,024 7,342 8,045 Reserve with Federal reserve 21,754 44,203 414,911 29,327 banks 11,059 20,572 126,842 29,402 Items with Federal reserve 62,331 8,616 27,618 18,055 9,124 97,340 14,040 bank in process of collection. 15, 634 Due from banks, bankers, 27,288 16,284 46,563 113,387 45,505 23,109J 95, 769 17,750 and trust companies. _ Exchanges for clearings house, 45,980 also checks on other banks 63,375 13,607 28,685 in same place 6,535 14,323 16,429 670,057 11,771 Outside checks and other 3,154 9,115 1,661 1,933 572 19,408 663 cash items United States securities bor5,741 4,519 6,470 418! 170 539 631 rowed __. 2,238 60 123 50 Other securities borrowed 18,337 2,890 10,096 1,780 9,443 9,855 156,930 7,427 Other assets Total _ 54,161 77 67,873 63 66,113 563 8,047 290 14,821 358 3,024 921,796 818 ', 849, 546 5,915 165,037 ., 319,291 3,450 39,396 477 13,662 9,122 76,237 92,237 143,565 ,828,325 3,364 234,66611, 042,473 73,5411, 7,585 217,008 48,782 8,264 896 19,060 309,439 52,177 18,420 170,785 74,740 833,183 10,923 237,993 91,113 560,983 25 2,056 1,747 131 2,122 2,862 1,775 105 1,254 4,383 8,587 457 7, 3,781 2,570 101 3,180 6,826 1,250 11,939 27,882 773 3,477 1,315 23,174 853,521 241 1,252 655 18,318 63,055 25,702 68 19,087 465 2,541 59 11 237,211 14,454 225 2,535 840,937 5,939,782 638,5571,504,836 249,693 470,053 2,438,159 611,105 100,376 150,319 121,957 1,552,102 14,617,8 65 LIABILITIES 85,265 19,123 31,410 112,609 40,280 33,0001 232,276 40,165 Capital stock paid in 107,006 24,598 39,495 199,005 72,906 101,367 13,878 Surplus fund ^_ Undivided profits, less ex8,205 49,529 25,075 4,636 6,197 18,710| 119,856 24,631 penses and taxes paid 44 627 674 728 1,077 1,883 3,767 1,525 D u e to Federal reserve b a n k s . D u e to banks, bankers, a n d 85,081 24,967 69,249 152,639 63,646 24,470 645,815 30,623 trust companies Certified a n d cashiers' or treasurers' checks outstand7,358 22,330 32,189 5,461 4,496 5,737 ing 10,720 363,875 047,654 285,027 496,009 93,138 190,267 862,228 239,689 444,290 3,047i Demand deposits.923,937 152,457 638,686 71,646 116,3951,,024,332 196,342 T i m e deposits 19,009 8,834 8,057 24,908 10,680 2,802 858 4,817 United States deposits 721,333 5,», 009,956 486,0491,261,876 197,953 383,883 2,!, 081,165 515,136 Total deposits _ Bills payable (including all obligations representing money borrowed other than 13,241 4,125 8,694 4,503 3,364 26,435 10,479 5,055 rediscounts) Notes and bills rediscounted (including acceptances of other banks and foreign bills of exchange or drafts 2,252 11,209 4,121 sold with indorsement) 9,319 4,165 12,681 122,763 1,549 Cash letters of credit and travelers' checks outstand31 41 11' 14,642 93 121 ing Acceptances executed for 104 4,214 13,759 22,686 customers 118 5,498 8,557 162,379 Acceptances executed by other banks for account of reporting banks 448 51 9,069 160 878 United States securities bor4,519 5,741 631 6,470 539 418 170 rowed 60 2,238 50 123 Other securities borrowed 31,888 11,795 3,994 227 1,259 5,198 Other liabilities 2,501 43,401 Total _ 6,692 2,812 8,610 3,308 11,810 3,510 82,205 32,983 703,445 619,266 1,365 1,674 13 1,142 90 22,675 32 10,460 42,151 9,570 80,116 1,235,623 7,296 483,202 3,448 24,519 2,133 936 34,846 68,577 79,163 484,975 45,311 20,338 12,800 786,414 4,224,966 10,123 42 392 __ __,__.. 91,441 919 88,781 135,446 103,798 1,386,179 12,371,555 327 80 709 9,937 86,949 287 184 12B 2,443 171,094 4 1,012 465 11 390 532 15,589 7,836 225,151 151 10,758 59 7,034 19,087 2,541 108,746 840,937 5,939,782 638,557 1,504,836 249,693 470,053 2,438,159 611,105 100,376 150,319 121,957 1, 552,102 14,617,876 218 FEDERAL RESERVE BULLETIN M A R C H , 1925- STATE BANK AND TRUST COMPANY MEMBERS—ABSTRACT OF CONDITION REPORTS ON DECEMBER 31, 1924, BY CLASSES OF BANKS [In thousands of dollars] Central reserve city banks New York (31 banks) Chicago (11 banks) 2,254,205 814 426,582 584,340 146 106,458 Other reserve city banks Total (42 banks) (187 banks) Country bank (1,315 banks) Total United States Dec. 31, 1924 (1,544 banks) Oct. 10, 1924 (1,566 banks) RESOURCES Loans and discounts Overdrafts United States Government securities Stock of Federal reserve banks Other bonds, stocks, and securities _ _.. Total loans and investments Customers' liability on account of acceptances _. Banking house, furniture, and fixtures _. Other real estate owned Gold and gold certificates All other cash in vault Reserve with Federal reserve banks Items with Federal reserve banks 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 United States securities borrowed _ Other securities borrowed _ Other assets Total. 9,888 2,759 378,497 3,069,986 156,940 52,148 2,394 7,740 29,294 354,447 71,150 41,388 107,844 801,547 22,676 14,657 2,838,545 960 533,040 12,647 486,341 3,871,533 179,616 66,805 935 6,951 67,409 16, 424 51, 966 8,675 36,245 421,856 87,574 93,354 655,019 14,937 41,899 3,248 696,918 18,185 150,287 1 12,847 1 163,134 132.159 37,118 11,796 412 55,333 4,605,730 1,040,560 5, 646, 290 5,832,393 3,139,193 14,617,876 168,550 150,915 92,133 265 39, 650 54,317 30,088 208,200 205,232 122,221 265 706,602 366,271 2,868,578 745,093 23,172 4,709,981 300,184 289,370 99,404 1,960 438,759 94,582 2,186,979 2,200,448 59, 678 4,983,406 195,061 124,664 62,070 8,235 90,262 22,349 1,270,306 1,279,425 8,591 3,679,168 703,445 619,266 283,695 10,460 1,235,623 483, 202 6,325,863 4,224,966 91,441 12,371,555 1,800 51,411 33,738 124,615 14,682 183,499 25,952 860 36,827 20,527 47 4,825 171,094 15,589 225,151 94,845 16,384 187,952- 8,978 2,394 3, 254,390 2,315 559,535 17,247 788, 294 4,621,781 32,010 162.158 29, 717 3,610 74,061 282,720 119,999 269, 519 1,756,611 2,640 226,716 9,502 553, 690 2,549,159 5,382 80,476 20,066 6,135 7,849, 546 5,915 1,319,291 39,396 1,828,325 11,043,473 217,008 309,439 52,177 18,420 170, 785 833,183 237,993 7,594,884 6,277 1,318,766 39,383 1,800,927 10,760,237 185,050* 301,379 51,197 16,874 151,633 817,797 185,600 580,318 24, 444 7,752 7,291 2,128 18,744 853,521 63,055 19,087 2,541 237, 211 462,155 47,686 18,060 1,954 212,144 13,792,084 60,479 128,607 30,420 198,110 LIABILITIES Capital stock paid in _ _ Surplus fund _ _ Undivided profits, less expenses and taxes paid Due to Federal reserve banks _ Due to banks, bankers, and trust companies Certified and cashiers' or treasurers' checks outstanding... Demand deposits Time deposits United States deposits Total deposits _. Bills payable (including all obligations representing money borrowed other than rediscounts) Notes and bills rediscounted (including acceptances of other banks and foreign bills of exchange or drafts sold with indorsement) Cash letters of credit and travelers' checks outstanding Acceptances executed for customers Acceptances executed for other banks for account of reporting banks United States securities borrowed , Other securities borrowed Other liabilities Total. Ratio of reserve with Federal reserve banks to net deposit liability (per cent)__ 597,674 354,662 2,435,660 450,141 11,377 3,849,779 108,928 11,609 432,918 294,952 11, 795 860,202 1,800 703,166 319,912 9,166 1,181,620' 5,938,3304,138,099 116,391 11,672,445 43,872 118,779 14,614 160,816 5,836 68 22, 683 39,366 1 27,715 1 67,081 1,374 11,796 412 32,397 406 7,291 2,128 9,268 10,758 19,087 2,541 108,746 10,097 18,057 1,954 114,367 4,605,730 1,040,560 5,646,290 5,832,393 3,139,193 14,617,876 13,792,084- 12.8 12.9 12.8 9.5 7.0 10.3 10.4 CHANGES IN MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM, 1919-1924 At the end of 1914, the year in which the Federal reserve system was put into operation, there were in active operation 7,574 national banks, which were required by law to become members of the system, and 8 member State banks. These banks had total resources of $11,444,000,000. Between 1914 and 1918 the number of member banks in active operation increased by 1,110, and on December 31, 1918, active membership comprised 7,762 national banks and 930 State banks, a total of 8,692 member banks, with aggregate resources of $27,516,000,000. This growth in the number of^ member banks represented largely the admission of State banks into the system. The initial growth in membership continued at about the same rate until 1922, when the number of member banks reached its highest point.s On December 29 of that year there were 8,220 national banks and 1,639 member State banks, a total of 9,859 member banks with resources of $33,883,000,000. Although the increase of 709 in the number of member State banks was not c^uite so large as during the earlier period, the increase of 458 in the number of national banks, a considerable part of which was due to- MARCH, 1925 FEDERAL RESERVE BULLETIN 219 the conversion of nonmember State banks, was proportional membership in the Richmond, much larger than in the preceding four years. Atlanta, Chicago, St. Louis, Minneapolis, and Since 1922, although the resources of the banks Kansas City districts, in which districts the have continued to increase, there has been a actual membership ranged between 26 and 39 decline of 177 in the number of national banks, per cent of the potential membership, the corand a decline of 95 in the number of State responding range for resources being 62 and 69 banks, a decrease in total membership in the per cent. system of 272 banks. The number and re- On December 31, 1924, there were 9,587 sources of member banks in active operation, member banks in active operation, as indicated as indicated by required reports of condition, by the required reports of condition which are shown for 1914 and for each year from 1918 were submitted by the banks as of that date. Of this number, 8,043 were national banks and to 1924, in the following table: 1,544 were State banks and trust companies. MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM, A net growth in membership of 895 banks dur1914 AND 1918-1924 ing the six years between the end of 1918 and the end of 1924 was the result of 2,226 additions Member banks and 1,331 losses, excluding from these such compensating changes as were involved in the Resources (in millions of End of year Number movement of banks between the two classes dollars) of members and which were consequently withTotal National State Total National State out effect on the membership in the system as a whole. 7,582 7,574 8 11,444 11,351 93 1914 The largest proportion of the additions dur8,692 7,762 930 27,516 20,034 7,482 1918 9,066 7,885 1,181 32,616 22,702 9,914 ing the period were State banks which entered 1919 9,606 8,125 1,481 31,184 21,357 9,827 1920 - . 9,779 8,165 1,614 29,316 19,411 9,905 the system, either converting into national 1921 9,859 8,220 1,639 33,883 21,966 11,917 banks or, upon approval by the Federal Reserve 1922 9,774 8,179 1,595 35,239 22,396 12,843 1923 9,587 8,043 1,544 38,987 24,369 14, 618 Board, becoming member State banks. In ]924 the six years under review, 1,019 State banks were admitted to the system as State bank On June 30, 1924, the latest date for which members and 406 converted into national information is available concerning the number banks. A larger number of State banks joined and resources of all banks in the United States, the system in the San Francisco district than approximately one-third of all the banks in the in any other; the number was also comparacountry were member banks; but the resources tively large in the Kansas City and Dallas of these banks, exclusive of the resources of districts. It exceeded in every district the the reserve banks themselves, aggregated number of banks which withdrew from memnearly two-thirds of the total resources of all bership either by becoming nonmembers or banks in the country. The Federal reserve through absorption by some existing nonmemact imposes certain minimum requirements re- ber bank or through succession by a new nongarding the amount of capital which member member bank organized for the purpose. Durbanks must have, which renders many non- ing the same period 763 national banks were member banks ineligible for membership en- organized. The remaining 38 additions were tirely apart from other considerations which banks which had formerly suspended and reare taken into account in passing upon appli- sumed operations again. In addition, 6 noncations for admittance. At the end of June member banks were absorbed by member banks, last year there were 13,598 nonmember banks, without effect on the number of banks in the with resources of $11,587,000,000, which were system. eligible for membership in the system on the Of the losses to membership, 463 are acbasis of capitalization. On the same date counted for by mergers. There were 296 intrathere were 9,650 member banks, with resources class mergers—that is, mergers between national of $35,777,000,000, representing about 76 per banks or between State banks, and 167 intercent of the aggregate resources of all member and class mergers—that is, mergers of State banks eligible nonmember banks and about 42 per cent with national banks, or vice versa. Voluntary of the total number of such banks. The high- liquidation accounted for 123 losses to memberest percentage of membership was in the Phila- ship.1 delphia district, where 72 per cent of all member and eligible nonmember banks, with 89 i In all cases in which voluntary liquidation resulted, as far as could per cent of the aggregate resources, were mem- be determined, in some other outcome than final termination of the inthe change was classified according to the ultimate status of oers of the system. There was much lower stitution, the bank. 220 FEDERAL RESERVE BULLETIN During the six years, 1918-1924, 107 banks withdrew from the system. Of these 101 were State banks which availed themselves of their option of withdrawal upon advance notice and 6 were compulsory withdrawals. In addition, 266 banks were absorbed or succeeded by nonmember banks. It will be noted that the number of member banks thus lost to the system by becoming nonmember banks (373) constitutes only about one-fourth of the number of nonmember banks which joined the system. There were during these six years 71 suspensions, 28 among national and 43 among State banks, and 293 insolvencies, 249 of these being national and 44 State banks. This total of 364 suspensions and insolvencies has occurred for the most part in the last two years; there were 104 member banks closed or insolvent in 1923 and 158 in 1924. These were, principally, banks located in the agricultural districts. Suspensions and insolvencies occurred more frequently among the smaller banks, as is indicated by the fact that the average resources MARCH, 1925 of these banks were about $760,000, as compared with an average of about $3,000,000 for all national banks and of nearly $9,000,000 for member State banks. Available data show that in these two years the totals of all bank suspensions in the country were the highest on record, and reports to the Federal reserve banks of banks closed during 1923 and 1924, member and nonmember, confirm the above indication as to the size of the banks, and show that about 68 per cent of all banks reported closed during these years had capital of $25,000 or less and less than 2 10 per cent had capital in excess of $100,000. In the following table are shown, by districts, the changes in active membership for the years 1919 to 1924, excluding from the data changes which represent compensating movements of banks between the two classes of members and which were without effect on membership in the system as a whole. 2 The reports for 1923 include only 7 of the 12 districts, but cover probably not less than 90 per cent of the banks closed. CHANGE IN ACTIVE MEMBERSHIP OF FEDERAL RESERVE SYSTEM, B\r DISTRICTS 1919-1924 Districts (number of banks) All districts Active membership Dec. 31,1918 Additions to membershp: Primary organization of national banks Conversion of nonmember banks to national banks. Admission of State banks Resumption following suspension Total NumRich- AtBos- New Philadel- Cleveber of (inresources thousands ton York phia land mond lanta banks of dollars) Chicago Min- Kan- Dal- San St. nesas FranLouis apolis City las cisco 8,692 27,515,659 423 723 661 814 565 426 1,334 514 867 763 429,362 16 138 54 48 37 40 51 43 406 297,363 2,595,023 3 13 11 62 6 47 12 68 40 46 26 19 19 116 120 107 86 1,019 994 727 644 66 87 69 114 58 125 41 46 137 173 44 38 18,063 1 2 1 9 6 8 8 Total additions to membership. 2,226 3,339,811 32 214 107 128 123 183 192 170 219 262 255 341 (2,590,387) (1,023,661) 17 5 40 12 9 3 21 15 18 7 16 10 31 9 18 7 17 5 34 6 33 17 42 71 8 13 23 37 19 20 24 6 8 6 24 7 6 17 11 50 5 8 7 9 16 7 7 16 1 17 3 1 3 6 10 16 3 1 4 1 20 110 1 4 58 1 16 7 10 45 2 23 26 11 9 5 11 9 22 15 118 60 201 190 154 219 +74 +110 +18 +72 +101 +122 766 Losses to membership: Merger between member banks— Intraclass2l Interclass Absorption or succession by nonmember banks Voluntary liquidation Withdrawal Suspension _ Insolvency Other . Total losses to membership Net increase (+) or decrease (—) Active membership Dec.31,1924 296 167 266 123 107 71 293 8 1,331 542,234 185,279 242,662 42,665 250,910 1 2 2 1 36 82 30 71 71 99 - 4 +132 419 855 +77 +57 871 +52 617 +84 348 1,264,098 +895 +11,471,208 9,587 38,986,867 738 1 National banks merging with national banks or State banks with State banks. 2 National banks merging with State banks and vice versa. 510 1,408 624 885 1,066 828 37 During 1924 the number of national banks decreased by 136 and the number of member State banks by 51, a decline in total membership of 187. Despite this decline in membership, the aggregate resources of all member banks showed an increase for the year amounting to about $3,750,000,000. The changes in membership, total and net, are classified in the following table: CHANGES IN ACTIVE MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM, DECEMBER 31, 1923, TO DECEMBER 31, 1924 Member banks Number Active membership, Dec. 31, 1923. Additions to membership: Primary organization of national banks Conversion of nonmember banks to national Admission of State banks Resumption following suspension _. Conversion within the system* Total additions. Losses to membership: Merger of member banks— Intraclass.__ Interclass Absorption or succession of member bank by nonmember Voluntary liquidation (terminal) Withdrawal Suspension... Insolvency... _. Conversion within the system i _ Other losses Total losses . Net change during the year Active membership, Dec. 31, 1924. National State Total Resources (in thousands of dollars) 8,179 1,595 9,774 35,238,606 90 20,336 90 19 21,345 61,805 17 10,541 2(178, 776) 132 46 170 declared insolvent and resumed operations again. As against these gains there were 357 losses. Of these losses 120 were due to mergers between member banks and to voluntary liquidations and 158 to suspensions or insolvencies. It will be noted, in addition, that 78 member banks were converted, in effect, into nonmember banks, 52 being absorbed or succeeded by nonmember banks and 26 State bank members withdrawing. This did not represent a net movement of banks from the system, however, since there were, on the other hand, 61 nonmember banks which, as already pointed out, joined the system, and, in addition, six nonmember State banks which were merged with member banks. In the New York, Philadelphia, St. Louis, Minneapolis, and Dallas districts there was a net gain of 19 member banks, when the changes in the status of banks, members or nonmembers, are considered. Out of the total of 158 banks which were closed or declared insolvent during the year, 125 were national banks and 33 State member banks. These are shown by districts in the table below: 114,027 MEMBER BANKS INSOLVENCIES AND SUSPENSION, (209,927) (201,873) 10 17 108 52 42,832 35 26 38 120 52,431 66,879 24,934 116,583 (47, 235) 1,347 268 —136 8,043 97 | -51 1,544 357 305,006 - 1 8 7 3+3,748,261 9,587 38,986,867 There were during the year 170 additions to membership, of which 61 were nonmember State banks which entered the system, 90 were national banks newly organized, and 18 were banks which had formerly been closed or 1924 Member banks Federal reserve bank National Total All districts Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City . _ . . 1 Compensating items, except for one member State bank which suc- Dallas ceeded a national bank that did not report on Dec. 31, 1923, and was San Francisco _ therefore not counted among the losses in 1924. Si 2 Resources of nine banks. 3 Includes in addition to increases classified above, those due o growth and reorganization In the following 221 FEDERAL RESERVE BULLETIN MARCH, 1925 _ _ 158 125 1 2 1 1 2 1 4 13 15 2 56 35 18 11 3 4 6 1 47 33 17 10 State 33 1 q 9 1 9 2 1 1 tables are shown in detail the changes in membership in the Federal reserve system, by districts, between October 10, and December 31, 1924, and, for the svstem as a whole, the changes during each of the past six years; all intrasystem changes are eliminated from the latter. 222 FEDERAL RESERVE BULLETIN MARCH, 1925 CHANGES IN MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM, BY DISTRICTS AND BY CLASS OF BANKS, OCTOBER 10DECEMBER 31, 1924 Resources, all districts (in thouAll sands of disdollars) tricts Totallmembersliip: Oct. 10, 1924 Dec. 31, 1924 Net increase (+) or decrease National bank membership: Oct. 10, 1924 Dec. 31, 1924 - Net increase (+) or decrease State bank membership: Oct. 10, 1924 Dec. 31, 1924 Net increase (+) or decrease (-) Changes in national-bank membership: Total additions Primary organization. _..__ Conversion of State member bank Conversion of nonmember banks Absorption 2of State member bank Resumption following suspension Total losses Voluntary liquidation (terminal) Suspension Insolvency Merger 3between national banks Absorption by State member bank Succession by State member bank Absorption or succession by nonmember banks Other decreases4 Changes in State bank membership: Total additions Admission of State banks.. Succession to national banks .Absorption of national banks 2 Absorption of nonmember banks Total losses Voluntary liquidation (terminal) Suspension Insolvency Merger 8 between State banks _ . . . . Absorption by national bank Conversion to national banks Absorption by nonmember banks -Withdrawal San KanChiSt. Minsas Dall as Frannecago Louis apolis City cisco 872 871 620 617 515 510 1,419 1,408 625 624 890 885 1,082 1,066 838 828 774 766 +10 +2 -1 -3 —5 -11 -1 -5 -16 -10 -8 382 383 701 711 664 666 752 752 556 555 384 382 1,057 1,055 495 492 788 785 1,049 1,033 654 645 -26 +1 +10 +2 -1 -2 -2 -3 -3 -16 -9 1,566 1,544 37 36 144 144 72 72 131 128 362 353 130 132 102 100 -3 -9 +2 -2 1+1,882,997 -48 23,311,786 24,368,991 8,069 8,043 1+1,057, 205 13,792,084 14,617,876 +825, 792 -22 4,131 2,071 26 21 563 1 374 3 307 (1) 816 36,391 1 52 5,324 2,022 10,683 15 2 13,833 Rich- AtNew Philadel- CleveYork phia land mond lanta 736 738 9,635 9,587 (51,718) Boston 845 855 37,103,870 38,986,867 1 Number 419 419 -1 1 1 120 119 -1 10 10 2 2 64 62 -2 2 1 1 2 1 2 2 1 3 1 2 4 1 3 4 1 2 4 2 12 4 1 6 4 1 4 4 3 2 4 1 6 1 2 37,770 4,904 4 3 3 3 380 «1 596 6,641 1,534 1 10 3 (6,123) 3 307 1 563 1 26,918 7 1 1 16 5 1 3,182 1,347 (1) 26 -5 1 3 18,653 36,559 -1 (1) 7 (3) 187 182 1 18 13,833 o 184 183 3 2 2 1 1 1 4 3 1 1 1 (1) 1 1 2 3 9 1 1 2 1 1 4 1 1 2 1 5 2 1 2 1 1 (2) (1) 2 1 1 1 1 1 1 2 Includes changes in resources due to reorganization, growth, etc., in addition to changes enumerated. 3 Number not increased; both number and resources appear under losses by absorption for the other class of bank. 4 Counted only among losses in number; resources of memberslnot diminished under ordinary circumstances. 8 Succession of one national bank by another which" did not reportjuntilfafter Dec. 31,1924. Succeeded a national bank which did not report Oct. 10 and was numbered among losses of previous period. 33 33 ' 587 584 1 3 223 FEDERAL RESERVE BULLETIN MARCH,, 1925 CHANGES IN MEMBERSHIP IN FFDERAL RESERVE SYSTEM, BY CLASS OF BANK AND BY YEARS, 1919-1924 1919 National 1921 1920 All National member State All member National State All member State Active membership, beginning of year Additions to membership: Primary organization of national banks Conversion of nonmember banks to national Admission of State banks .. Resumption following suspension Conversion within the system * Total additions Losses to membership: Merger of member banks— Intraclass 2_. . Interclass3 Absorption or succession of member bank by nonmember Voluntary liquidation (terminal) Withdrawal Suspension _ - Insolvency Conversion within the system 1 __ Other losses -_ . Total losses _. . 7,762 120 34 138 107 38 129 144 74 198 Net increase (+) or decrease (—) Active membership, end of year +123 7,885 +251 1,181 +374 9,066 +240 8,125 +300 1,481 +540 9,606 +40 +133 +173 9,779 930 8,692 7,885 170 62 280 234 102 280 170 62 9,066 8,125 234 102 332 103 59 332 11 6 1 5 17 3 Total losses _. - Net increase (+) or decrease (—)_ Active membership, end of year _ _ 103 59 204 5 5 243 285 512 347 338 669 184 207 371 36 12 1 4 37 16 30 11 7 37 13 38 26 10 2 48 33 59 4 3 62 42 8 9 39 11 3 4 9 3 12 14 12 3 8 27 6 2 6 1 National Do. Absorption or succession of member bank b y nonmember _ Voluntary liquidation (terminal) _. Withdrawal Suspension Insolvency _> _ _ __ Conversion within the system * Other losses 204 9,606 11 2 12 1 2 2 3 7 6 1922 Active membership, beginning of year Additions to membership: Primary organization of national banks Conversion of nonmember banks to national Admission of State banks Resumption following suspension Conversion within the system * Total additions Losses to membership: Merger of member banks— Intraclass 2 3 1,481 1,181 8,165 All member National State 1,614 9,779 8,220 77 109 89 55 17 8,165 1,614 1924 State 1,639 All member National All member State 1,595 9,774 42 17 6 1 3 90 19 42 18 1 9,859 8,179 89 55 90 19 178 74 216 132 46 170 61 46 43 23 16 5 59 28 45 21 9 10 54 31 1 29 26 13 49 24 7 9 13 52 35 26 38 120 214 97 290 49 39 12 7 1 2 3 66 6 95 9 23 8 36 31 11 18 9 48 66 95 28 17 ' 4 5 18 1 12 1923 77 109 8 20 1 10 7 1 1 2 7 21 2 30 1 2 4 30 73 7 2 6 1 50 5 29 29 29 45 29 19 12 19 85 17 108 2 2 1 301 268 97 357 -136 8,043 -51 1,544 -187 9,587 29 2 159 72 210 219 118 +55 8,220 +25 1,639 +80 9,859 -41 —44 —85 8,179 1,595 9,774 6 26 21 12 6 1 1 Compensating items, except in 1919 when two national banks were succeeded by a single State bank, and in any case in which a bank was succeeded by another that was nonreporting until the following year, as in 1919 when a member State bank converted into a national bank which did not report until 1920. 1 3 National banks merging with national banks, or State banks with State banks. National banks merging with State banks and vice versa. 224 FEDERAL RESERVE BULLETIN MARCH, 1925 DEBITS TO INDIVIDUAL ACCOUNTS BY BANKS IN SELECTED CITIES MONTHLY SUMMARY FOR BANKS IN 141 CENTERS [In thousands of dollars] 1924 Number of centers Federal reserve district No. No. No. No. No. No. No. No. No. No. No. No. Total January December 1924 1923 November December Tanuary 2,252,717 23, 708,849 1,820,722 1,980,486 675,127 973,154 4, 500,225 1,081,663 891,171 1,062,890 586,644 2,359,349 2,467,796 28,106,044 2,242,478 2,466,903 795,584 1,154,408 5,326,098 1,259, 637 849, 622 1,189,358 664,938 2, 634,300 2,685,491 28,500,616 2,173,091 2,511,678 767,253 1,201,107 5,490,747 1,306,725 731,307 1,211,359 658,963 2,720,698 2,150,666 20,632,112 1,738,336 1,996,108 710,408 991,989 4,428,485 1,094,428 664,498 1,053,147 583,636 2,460,057 2,287,912 22,801,386 1,999,728 2,331,503 804,167 1,124,910 4,886,123 1,194,752 660,760 1,082,885 620,979 2, 652,946 2,189,052 22,814,899 1,925,455 2,227,515 733,878 1,047,405 4,701,940 1,130,859 565,332 1,003,759 567,222 2,590,948 141 41,892,997 49,157,166 49, 959,035 38,503,870 42,448,051 41,498,264 1 140 23, 046, 934 27,327,223 18,846,063 i 21,829,943 27,681,894 22,277,141 19,982,927 18, 520,943 22,081,149 20,366,902 22,113,958 19,384,306 1—Boston 2—New York 3—Philadelphia... 4—Cleveland 5—Richmond 6—Atlanta 7—Chicago 8—St. Louis 9—Minneapolis. __ 10—Kansas City.. 11—Dallas 12—San Francisco New York City Other cities November 1925 WEEKLY SUMMARY FOR BANKS IN 249 CENTERS [In thousands of dollars! Federal reserve district No. No. No. No. No. No. No. No. No. No. No. No. 1—Boston 2—New York 3—Philadelphia... 4—Cleveland 5—Richmond 6—Atlanta 7—Chicago.8—St. Louis 9—Minneapolis.._ 10—Kansas City.. 11—Dallas 12—San Francisco. Total Number of centers 1925, week ending— Jan. 28 567,126 6,067,599 499, 217 605,838 269,158 249,707 1,181,429 273, 501 170,979 269,632 141,734 575,945 249 10,871,865 Feb. 4 Feb.11 1924, week endingFeb. 18 615,703 586,465 593,455 6,589,601 6,215,767 5,752,543 528,946 467,103 476,552 654, 741 642,526 619,162 300,956 283,355 291,149 265,438 258,979 268,881 1,201,122 1,191,105 1,175, 619 315,838 297, 294 309,432 179,800 194, 665 171,269 289,948 287, 205 286, 265 157,566 151,175 156,837 650,841 631, 098 621, 253 11,750,500 11,206,737 10, 722, 417 Jan. 30 Feb. 6 562,172 5,753,734 494,106 617,778 303,128 257,487 224,397 986,041 1, 051,596 275, 321 254,511 140,087 131,026 235,469 229,482 141,431 127,805 638,029 569, 978 9, 513,443 10,404, 783 496,187 5,128,570 480,635 551,162 Feb. 13 Feb. 20 500,160 4,389,379 400,951 513,045 253, 738 230, 292 250, 219 125,153 235,648 116,449 569,156 8, 531,158 536, 597 5,530,828 510, 749 643,656 270,000 261,755 1,202,130 277,778 158,996 260, 011 145,325 675,152 10,472,977 338, 727 4,162, 599 56,578 294,490 119,039 61,745 171, 943 28, 750 74,300 29,016 25,170 12,325 14, 608 77,642 572, 598 129,786 139,034 .14,208 38,661 28,337 60,156 2,308 68,434 30,696 15, 696 36, 526 37, 768 7,277 21,620 185,501 167,613 34,415 11, 730 35,504 10,385 360,122 5, 221,896 78,435 371,045 168,095 79,100 201.469 • 29,835 84,858 32,957 26,505 14,283 17,075 94,444 730,925 173, 532 156,143 14,325 42,210 35.119 77,154 1,928 76, 794 35,842 16,087 45,568 44,649 8,673 33,280 215.470 216, 710 40,583 14,638 39.120 11,262 BANK DEBITS FOR FEDERAL RESERVE BANK AND BRANCH CITIES No. 1—Boston No. 2—New York Buffalo No. 3—Philadelphia.... No. 4—Cleveland Cincinnati Pittsburgh No. 5—Richmond Baltimore No. 6—Atlanta Birmingham Jacksonville Nashville New Orleans No. 7—Chicago Detroit No. 8—St. Louis Little Rock Louisville Memphis... No. 9—Minneapolis Helena No. 10—Kansas City Denver Oklahoma City. Omaha No. 11—Dallas El Paso Houston No. 12—San Francisco.. Los Angeles Portland Salt Lake City. Seattle Spokane 395, 787 5,781,168 67,678 381,540 134,703 71,633 223,453 32,156 81,959 30,497 27,036 15, 575 19, 924 80, 977 731,800 168,708 152,400 14,438 42,294 33,814 88,706 1,751 74,424 37,831 18,269 47,075 45,351 7,617 . 32,880 191,042 169,359 30,321 13,342 39,475 10,043 425, 930 6,279, 720 72,705 410,172 149,148 80,713 241,417 35,593 93,646 38,410 32,295 17,715 19,355 77,204 762,030 152,426 186,350 17,402 40,464 37, 776 1,703 83,092 40,627 19,824 47,392 51,392 7,892 36,369 241,993 181, 537 34,228 12,655 41,564 11,254 415,006 5,920,001 69, 778 345,844 144,008 79,259 243,424 33, 541 81,891 31,836 17,870 18,087 78,517 758, 893 147,644 168, 900 16,165 45,102 33, 941 111, 969 2,013 81,830 40,563 19,634 47,101 49,131 7,641 33,957 220,558 188,545 32,862 14,170 47,093 10, 565 398,180 5,457,373 73,838 355,255 151, 353 76, 575 193,700 29,169 89,206 36,855 29,200 18,609 19,346 78,132 714,009 163,493 172,100 16,406 51,033 35,235 91,448 1,936 82,500 35, 536 19,031 46, 624 51,443 6,824 34,378 210,269 173,878 34,074 14,843 44,525 11, 953 337, 551 4,868,735 62,694 365,617 125,532 69, 725 191,179 29,637 88,600 29, 263 20,181 12,635 16, 372 78,606 651,051 149,004 142,803 12,042 38, 401 31,950 65,754 1,689 64,613 36,329 13,604 37,945 40,198 7,555 28,856 172,368 173,436 32,835 13,372 37,463 8,926 385,106 5,465, 716 69,243 373,124 152, 512 73, 351 199, 835 35,132 95,500 32, 502 23, 713 13, 571 16,635 91,027 563,140 150, 797 157,127 13,763 39, 780 34,379 67, 797 2,244 68,837 36,823 17,568 32,240 44,868 8,294 30,180 199,890 186,067 39,324 13,435 38,184 12,085 MARCH, 225 FEDERAL RESERVE BULLETIN 1925 MONEY IN CIRCULATION [Source: U. S. Treasury Department circulation statements] [In thousands of dollars] Total 1914—July 1 1917—Apr. 1 1920—Nov. 1 1922—Aug. 1 1924—Feb. 1 Mar. 1 Apr. 1 May 1 June 1 Julyl Aug. 1 Sept. 1 Oct. 1 Nov. 1 Dec. 1 1925—Jan. 1 Feb.l.. 3,402,015 4,100,591 »5,628,428 4,337,418 4,681,708 4,807,778 4,812,861 4,760,114 4,815,401 4,755,403 4,665,187 4, 773,878 4,806,367 4,879,694 4,993,570 4,992,931 4,751,538 1 Gold cer- Standard coin and Gold silver bullion tificates dollars Silver certificates 1,026,149 1,348,818 231,404 171,985 571,381 633,253 687,252 726,179 779,169 801,381 800,124 872,807 898,165 904,861 933,688 970,564 929,650 478,602 459,680 60,385 268,802 357,177 368, 750 367,113 370,093 373,381 364,414 372,683 385, 499 388, 574 389,201 389,113 388,540 360,808 611,545 641,794 495,353 416,282 405,573 416,047 408,062 403,649 402,122 396,415 398,499 401,794 427,970 436,160 437,971 458,206 455,169 70,300 70,863 89,725 58,378 56,496 55,910 55,202 54,823 54,078 54, 017 53,644 53,915 54,603 55,185 55,606 57,384 55, 533 Treasury Subsidi- United notes of ary silver States 1890 notes 2,428 1,997 1,628 1,508 ,440 1,437 ,433 1,428 ,425 1,423 1,420 1,417 1,412 1,410 1,407 1,405 1,401 159,966 191,351 261,556 229,956 252,511 251,537 251,639 252, 702 252,557 252,971 252,407 253, 732 256,467 259,710 263,102 266,298 256,898 337,845 330,353 277,736 284,343 294,470 302,404 304,846 301,110 305,966 297,790 301,667 308, 111 304,345 305,840 304,418 295,233 283, 598 Federal reserve notes 356,448 3,310,225 2,115,350 2,008,877 2,030,818 1,988,585 1,909,143 1,897,636 1,843,091 1,745,820 1,746,230 1,729,301 1,784,046 1,862, 055 1,841,621 1, 688, 662 Federal Nationalbank bank notes notes Total circulation per capita (in dollars) 715,180 697,160 715,023 725,782 721,054 735,531 737,141 729,962 738,629 733,835 729,288 741,144 736,500 734,571 737,739 705,442 711, 832 34.35 39.54 52.36 39.47 41.77 42.85 42.85 42.33 42.78 42.20 41.36 42.28 42.52 43.12 44.08 44.03 41.86 3,170 209,877 65,032 12,729 12,091 11,588 11, 025 10,438 10,066 9,635 9,229 9,030 8,710 8,471 8,238 7,987 1 The figures for the several classes of money do not add to this total, as mutilated currency forwarded for redemption and unassorted currency held by Federal reserve banks have been deducted only from the total. DISCOUNT RATES OF FEDERAL RESERVE BANKS IN EFFECT FEBRUARY 28, 1925 Paper maturing— After 90 days but within 9 months Within 90 days Federal reserve bank Commercial, agricultural, and livestock paper, n. e. s. Secured by United States Government obligations Bankers' acceptances Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City_. Dallas San Francisco. 1 Including bankers' acceptances drawn for an agricultural purpose and secured by warehouse receipts, etc. Changes during the month—New York, on February 27, from 3 to 3J per cent. Trade acceptances Agricultural l and livestock paper 226 FEDERAL RESERVE BULLETIN MARCH, 1925 GOLD SETTLEMENT FUND INTERBANK TRANSACTIONS FROM JANUARY 22, 1925, TO FEBRUARY 18, 1925 [In thousands of dollars] Daily settlements Transfers Federal reserve bank Debits Boston New York Philadelphia Cleveland . Richmond Atlanta _ Chicago St. Louis Minneapolis Kansas City Dallas _ San Francisco Total, four weeks ending— Feb. 18,1925 Jan. 21,1925 . Feb. 20,1924 Jan. 23,1924 _ _ 3,000 1,000 _. __ 1,000 500 Credits 2,000 3,000 1,000 1,500 1,000 3,000 8,500 42,000 43,500 19, 500 8,500 42,000 43,500 19,500 Debits Credits 701,194 2,368,884 671,698 616,393 417,950 292,122 1,104,065 555,276 149,437 377,137 268,961 303,145 710,772 2,351,225 677,002 621,602 411,131 300,016 1,105,724 551,321 147,539 374,132 271,587 304,211 7,826,262 8,308,529 7,088,226 7,204,855 7,826,262 8,308,529 7,088,226 7,204,855 Change in ownership of gold through transfers and settlements Decrease 18,659 3,819 2,455 2,398 2,005 1,934 31,270 Balance in fund at close of period Increase 6,578 7,304 5,209 8,894 659 2,626 31,270 57,478 137,428 47,692 51,181 13,633 16,310 93,327 21,998 23,625 46,270 29,989 39,618 578,549 592,392 589,784 587,324 MONEY RATES PREVAILING IN LEADING CITIES, FEBRUARY 15, 1925 The following table shows the customary rates charged on loans and discounts in the various cities in which Federal reserve banks and their branches are located, as reported by representative banks. These rates are not averages but are those rates at which the bulk of paper of each class is handled by reporting banks. Where it appears from the reports that no one rate clearly covers the bulk of the paper handled, a range of the rates most commonly charged is given. In making comparison between the rates charged since February, 1924 and rates charged at earlier periods, it should be borne in mind that the earlier rates refer to an entire month, while the later figures cover only a week. Attention is also called to the fact that the method of reporting the rates has been somewhat modified and that slight changes in the rates may reflect these modifications. Customers' prime commercial paper Loans secured by stocks and bonds Interbank loans District and city 30-90 days 4-6 months Week ending— Week ending— Week ending— Feb. Jan. Feb. Feb. Jan. Feb. Feb. Jan. Feb. 15, 15, 15, 15, 15, 15, 15, 15, 15, 1925 1925 1924 1925 1925 1924 1925 1925 1924 No. 1.—Boston No. 2.—New York Buffalo No. 3.—Philadelphia.._ No. 4.—Cleveland Pittsburgh Cincinnati No. 5.—Richmond Baltimore No. 6.—Atlanta Birmingham Jacksonville New Orleans Nashville No. 7.—Chicago Detroit No. 8.—St. Louis Louisville Little Rock No. 9.—Minneapolis Helena No. 10.—Kansas City Omaha Denver Oklahoma City.. No. 11.—Dallas El Paso Houston No. 12.—San Francisco... Portland Seattle Spokane Salt Lake City.. Los Angeles 4-41 4 -5 5-6 4-41 5 -6 5 -6 5*-6 4*-5 41-5* 5 -6 5 -6 5-6 5*-6 4 -5 4*-6 3*-5 6 6 4*-5 8 5 -6 4 -6 5 -6 5 -7 4 -6 6 -8 5 -6 5 -5* 6 6 5 -7 6 6 -7 4 5 -6 4 -4i 5 -6 5 -6 5*-6 5 5 -5* 5 -6 5-6 4 -8 5 -6 5*-6 4 -5 4*-6 3*-5 6 5 4-4* 5 4 -5 '5~-5l 6 5 -6 5*-6 5*-6 5* 5 -6 6-7 7 6 6 5 -5* 5 -6 5 -5* 6 4 4*-5 4 5 4-4* 4 -6 5 -6 5*-6 5 -6 4f-5* 4-4* 5 -6 5 -6 5 -6 5*-6 5*-6 5 -6 5*-6 5 -5* •5* 5-6 5-6 5-6 5-6 5 -6 6 -7 4 -8 6 -7 6 5-6 5 -6 6 6 6 41-5 41-5 5* 5 -6 4*-6 5 -6 3*-5 5 -51 o a 6 6 6 4-51 8 5 -6 4 -6 41-6 6 6 6 4 -6 8 6 -8 6 5 -6 5* 5 -5* 6 6 6 6 7 5 -7 6 6 6 -7 6*-7 8 5 -6 4*-6 31-5 8 5-7 6-7 4 -7 8 6 -8 5 -6 5 -6 5-5* 5-5* 5*-6 4 -7 6 6 4 -6 5-6 6 6-7 6 -7 5-6 5 -5* 4*-5 4*-5 5 -6 5 -6 5-6 5 -6 5-6 5 4*-5| 5 6 5* 6 6 6 6 5 -6 5*-6 6 -7 5 -7 5 -6 6 -7 6 6 Feb. 15, 1925 5 4* 5-51 31-5 5*-6 5 4 *5"-U 4 -4* 5 51 5 -6 5 -6 6 5 -6 5 -6 5 -5i 5 -5* 5 51-5* 5 -6 4*-5* 5f 41-5 5 -6 5 -6 4*-6 5 -6 5 -6 5 -7 6 5 -6 5 -6 6 5 J 5*-6 5*-6 4*-5* 51 4 -5 5 5 -6 5 -6 41-5* 5 -6 5 6 4 6 5* 5*-6 5 -6 5*-6 6-7 6 5 -6 6-8 4H> 5*-6 Week ending— 4 -5 7 6-8 5 -5* 4*-6 4*-5 4 -6 4 -4* 4*-5 Loans secured by Liberty bonds 5 -6 6 6 6 -7 6-7 6 -7 6 6 6-7 7 6 6 7 6 4*-6 5 -6 5*-6 5 -6 5 -6 8 5 -6 5 -6 6-7 6 6 -7 6 6-7 Demand Time Week ending— Week ending— Jan. Feb. Feb. 15, 15, 15, 1925 1924 1925 Jan. Feb. Feb. 15, 15, 15, 1925 1924 1925 5 -51 41-5 5 -5* 3*-4! 5 -6 5*-6 4 4 5-6 5 -6 5-6 5-6 5 -5* 5.-5* 5-5*| 4*-5 4*-6 41-5 41-5 5 -6 4*-6 6 6 6 5 -8 5* 5 -6 5 -6 5 -6 5 -6 5*-6 5* 4 -5 4*-6 5*-6 5 -6 4-51 5 -6 6 5* 6 5 -7 4-51 4 4* 3 -5 5 -6 4 5 -6 5 -6 5 -6 5 -6 5*-6 5 -6 5*-6 5*-5! 6 6 6 -7 5 -8 6 5 -6 5*-6 5*-6 4 -5 4*-6 5*-6 4 -5 51-5* 6 6 6-7 6 4*-5* 5* 5 -6 4*-6 3*-6 5 -6 5 -6 5*-6 5 -6 6 5 -7 5 -6 8 6 -8 5 -6 41-6 5 -6 5*-6 5 -6 6 -7 6 -7 6 6 6 -7 6 -8 6 6 -7 6 -7 5 -6 2*-6 5 -6 6 tf 5 -6 5 -6 6*-7 6 8 5*-6 6-7 4*-5 4*-5 6 4-4* 5*-6 5 -6 5J-6 4*-6 41-5* 5-6 5-6 5*-6 4 -5 5 -6 4-5* 6 6 4*-5! 8 5 -6 4-8 5 -6 5 -7 6 -8 6 -8 41-6 5*-6 6 -7 6 6 -7 6 -7 6 -7 Jan. Feb. 15, 15, 1925 1924 5* 4 -5 5 -5* 5 -6 4 ~5~-5* 5 -6 6 5 -6 6 5 -6 5*-6 5 -6 5*-6 5 -51 5*-5! 5-6 6 6 6 -7 5 -8 6 5 -6 5-6 5*-6 6 4 -5 5* 5 -6 5-6 4 -5 5* 6 6 6 -7 6 4*-5! 5* 6-8 8 5 -6 6 5 -6 6 6 6 -8 7 -8 6 -8 5 -6 5*-6 7 6-7 6 6 7 7 6 7 6 -7 6*-7 Loans secured by warehouse receipts Cattle loans Week ending— Week ending— Feb. 15, 1925 Jan. Feb. Feb. 15, 15, 15, 1925 1924 1925 4 -6 6 4 -51 5 -6 6 6 -7 5 5 -51 41-6 6 5"-6" 5*-6 4 -5* 5*-6 4-51 6 6 -7 41-5 6 4-5* 4 -6 6 6 -7 5 5* 5-6 6 4*-8 5 -6 5*-6 4 -5* 5-6 4*-5* 6 6 -7 5 -6 6 6 -7 5 -7 5 -8 8 5 -6 5 -6 7 7 6-7 7 6-7 5*-6 6 6 -7 7 6 -7 6 6 -7 6 5 -6 8 8 5 -6 6 -7 6 6 7 6 -7 6 -7 7 6*-7 7 6 -7 6*-7 Jan. Feb. 15, 15, 1925 1924 5 -51 5 -6 6 6 6 5 -& 5*-6' 6 6 -7 6 6 5*-6 5* 5 -5* 5 -5* 5*-6 5*-6 6 7 ~-~6 8 6 -7 6 -7 6-7 8 6-7 8 6 -8 5* 8 6 -7 5*-8 6 8 6 -7 7 -8 8 -10 8 -10 7 -8 6 -8 6-6* 6 -7 7 -8 7 -8 to to 228 FEDERAL RESERVE BULLETIN MARCH, 1925 GOLD AND SILVER IMPORTS AND EXPORTS IMPORTS TO AND EXPORTS PROM THE UNITED STATES, DISTRIBUTED BY COUNTRIES Gold Countries January, 1925 Silver December, 1924 January, 1924 $3,036,153 6,510 937 $2,119,621 January, 1925 December, 1924 January, 1924 IMPORTS France .. . _ Germany Italy Netherlands Spain Sweden England _ Canada Central America Mexico West Indies Argentina Chile Colombia Ecuador Peru Uruguay Venezuela _ __ $71,046 __.-__ __ _._ _ ._-_ . . . -_ 43 4,108 77,115 3,583 86 129 14,927 39,151 104,135 7,324 102 81,867 10,808 19,491 512,170 197,038 156,888 148,712 486,456 4,219 181,079 26,482 58,081 3,153 23,378 5,037,800 10,274,049 45,135, 760 7,338,559 5,863,892 5,979,758 1,308,602 17,500,000 3,283,743 40,000 1,002,628 5,078,028 69,998 33,500 20,000,000 1,324,123 130,000 1,000,652 10, 263,690 187,602 17,995 67,493 342, 673 10,000 100,000 466,344 10,000 98,500 7,977 177,164 . _- China _ Dutch East Indies... Philippine Islands British Oceania Egypt Portuguese Africa All other Total . . •_ $10,779 48,358 13,509 4,408 572,033 6,467 33 320 81,127 2,357 227 127,636 3,120,326 116, 627 517,656 48,982 153,842 _ $1,353 8,365 2,059 4,212 660,613 133,053 4,207,359 27,407 7,026 . $28,008 624 2,367,142 5,915,000 5,910 41,934 22,939,710 8,466,428 151,020 560,318 74,244 202,966 4,441 384,185 92,571 104,217 21,343 20, 055 240, 539 192, 536 76,504 1,631 127, 671" 9,239 . __ . 16, 614 2, 729,944 209,982 472,804 34, 564 2,715, 292 80,603 268,932 175,151 39,942 21,097 154,269 148,423 76,157 15,436 188,787 6,989 1,926,929 12,731 143 42,823 279,454 121,286 4,547,455 89 403 247,302 11,708 9,855 395,577 39 369,446 306,453 4, 505,555 19,281 EXPORTS France Germany Netherlands Spain Sweden England Canada _ Central America Mexico. _. West Indies Argentina ._ Colombia Ecuador - _ Peru Uruguay British India Ceylon China Dutch East Indies Hongkong Japan British Oceania.. Egypt All other Total __ _ .- . _ _. 3,559,365 124,048 1,600 137,399 1,920 650 33,000 146, 745 155,180 49,000 700 958,948 146,372 775 156,303 12,895 1,250 15,000 384,000 __ 750,655 36,466,268 1 1 128,278 1,000 137,695 __ 15,000 941,605 30,566 5,674,442 20,000 3,942,430 5,884,364 3, 981,653 ............ 3,121,542 4,943,153 1,675,239 13,000 478,500 80,656 220,000 6,354,405 245,493 2,500 135,800 750 73,525, 943 39, 674,653 280,723 32,250 858,259 45 11,384, 799 11,279, 630 8,208,644 229 FEDERAL RESERVE BULLETIN MARCH, 1925 FOREIGN EXCHANGE RATES [Noon buying rates for cable transfers in New York as published by Treasury. In cents per unit of foreign currency. ] COUNTRIES INCLUDED IN COMPUTATION OF GENERAL INDEX February, 1925 Monetary unit Par of exchange January, 1925 High Low High _ Franc Krone Franc Reiehsmark Pound Lira Florin itain... nds . _ Krone Peseta Krona Franc ::::: Rwit'7orl' fend. OanadB 1 Ar£pntiilLS Brazil *• CJhilo i China rIndia Dollar Peso (gold) Milreis... Peso (paper) Shanghai tael Rupee Yen Average Average Low Rate index l January, 1924 High cent Rate Per of par 59 U 5.0000 4.9700 5.1800 19.30 5.0573 5. 2200 26.80 17. 7700 17. 8700 17. 6700 17. 9200 17. 8104 5.4100 5.1400 19.30 5.3000 5.4300 5.3923 23.82 23. 8000 23. 8000 23. 8000 23. 8000 23. 8000 486. 65 475.7800 479. 3300 474.9900 480. 3700 478.1673 4.1600 19 30 4.0300 4. 0300 4. 2400 4.1669 40.20 40.0100 40. 3100 40. 3000 40. 6100 40. 4069 15. 3100 15.1100 15. 3300 15. 2708 26.80 15.2100 19.30 14.1500 14. 3100 13.9900 14. 3200 14.1808 26.80 26.9300 26. 9500 26.9200 26. 9600 26.9458 19.30 19.2100 19.3000 19.2500 19. 5000 19. 3369 100. 00 99. 7988 99. 9189 99. 5313 99.9568 99. 6895 96.48 89. 6300 91. 3100 90.4600 91. 3900 91. 0754 32.44 10.9900 11. 6300 11. 5700 11. 9900 11. 7150 3 19. 53 10.6500 10. 9500 10. 8100 11. 5400 11.3469 3 66. 85 74. 7300 75. 7500 74. 3200 75. 9600 75. 3423 48.66 35.5900 35. 8600 35.4900 35. 8900 35. 7065 49.85 38. 5200 39. 7300 38. 3500 38. 5300 38. 4546 OTHER Per cent of par Low 4.0200 26.20 4.4300 4.1819 66.46 16. 0200 17. 5800 16.9419 4. 3800 27.94 4. 6650 5. 0100 2 2.0219 99.92 2.0236 .0226 98.26 420. 9400 430.9600 425.9092 4. 2800 21. 59 4. 3400 4. 3900 100. 51 36.9200 37. 8200 37. 3496 56.98 13. 5300 14.4800 14. 0765 73.48 12. 6500 12. 8300 12. 7462 100. 54 25.8700 26. 4000 26.1831 100.19 17. 2500 17.4300 17. 3212 99.69 97. 0137 97.8573 97. 3645 94.40 71. 8300 74. 9300 73. 6542 9. 8100 11. 7000 10. 8523 36.11 9.9500 10. 6800 10 3631 58.10 112. 70 69. 6400 71.3500 70. 2704 73.38 30.1700 30. 8300 30. 4473 77.14 43. 3800 46. 0900 44.8965 21.67 63.22 24.17 87.52 22.49 92.91 52.52 66.04 97.70 89.75 97.36 76.34 33.45 53.06 105.12 62.57 90.06 COUNTRIES f Aust f ia Bulgaria.. Czechoslovakia. Fini and Greece Huiigaiy Pola nd __ Portugal Rumiania Yugoslavia Curva Mexico Un.iguay Chitia _ _ Hongkong Straits Settlements... Krone Lev Crown Markka.. Drachma Krone Zloty Escudo 0. 0014 0.0014 .7344 .7279 2.9704 2.9518 2. 5216 19.30 2. 5183 1. 6954 19.30 1. 5658 .0014 .0014 _ _ 20.26 19.30 19.1700 19.2000 4. 9600 108. 05 4. 8500 Leu .4870 .5180 19.30 Dinar 19.30 1. 6384 1. 6017 100. 00 99. 9799 100. 0281 Peso 49.85 48.9750 49.4333 .do _ _ . 103. 42 94.2800 97. 8200 do Mexican dollar 3 48.11 54. 5600 55. 6700 3 47. 77 54.9600 55. 7900 Dollar Singspore d o l l a r . . . . 56.78 55. 0400 55. 5900 20.26 19.30 0. 0014 .7286 2.9727 2. 5179 1. 6933 .0013 19.1700 4. 8200 .5133 1. 5524 99. 9427 48.8000 97. 6600 54. 7500 54.9600 54. 0000 0.0014 .7371 3. 0171 2.5225 1.8167 .0014 19. 2000 4.9200 .5288 1. 7788 99.9777 48.9833 99. 5600 55. 9600 55. 8800 56. 2500 0. 0014 .7335 2.9987 2.5198 1.7553 .0014 19.1788 4. 8808 .5191 1. 6347 99.9561 48.8800 99. 0319 55. 4962 55. 5458 55. 3104 0.01 3.80 13.06 9.09 .01 99.37 4.52 2.69 8.47 99.96 98.05 95.76 115.35 116. 28 97.41 0. 0014 .6833 2. 8726 2.4658 1. 7610 .0034 0. 0014 .7506 2.9080 2.4943 2. 0207 .0052 0. 0014 .7143 2.8981 2. 4828 1. 9357 .0039 12.86 10.03 .02 2.9700 3. 3700 .4913 .5096 1.1169 1.1471 99.9349 100. 0000 47.6094 48. 4219 77. 4700 83. 2000 50.0200 51.4200 49.9500 50.7200 49.7100 50. 8500 3.1831 .4993 1.1335 99. 9736 48. 0737 79. 6808 50. 3727 50. 2081 50. 3481 2.95 2.59 5.87 99.97 96.44 77.05 104.70 105.10 88.67 0.01 3.70 i Weighted average, weighted on the basis of trade with each country for the 12 months ended December, 1924. T h e method of construction was J described and all index numbers since November, 1918, were published on page 1260 of the BULLETIN for October, 1922. Per billion paper marks. ' 1913 average. SILVER [Average price per fine ounce] February London (converted at average rate of exchange). New York _ $0.69323 . 68846 January $0. 69391 . 68817 FEDERAL RESERVE DISTRICTS \ MINN. MINNEAPOLIS \ KANSAS KANS. OKLA. Oklahoma City ARK. <£_ , Little*Rock/ ^ New Orleans BOUNDARIES OF FEDERAL RESERVE DISTRICTS BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES FEDERAL RESERVE BANK CITIES • o FEDERAL RESERVE BRANCH CITIES FEDERAL RESERVE BANK AGENCY