Full text of Federal Reserve Bulletin : March 1933
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE
BULLETIN
MARCH, 1933
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
Emergency Banking Legislation
Unified Banking—Opinion of Board's Counsel
Annual Report of Bank of France
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1933
FEDERAL RESERVE BOARD
Ex officio members:
EUGENE METER, Governor,
WILLIAM H. WOODIN,
CHARLES S. HAMLIN.
Secretary of the Treasury, Chairman,
ADOLPH C. MILLER.
GEORGE R. JAMES.
Comptroller of the Currency,
FLOTD R. HARRISON, Assistant to the Governor,
CHESTER MORRILL, Secretary.
E. M. MCCLELLAND, Assistant Secretary,
J. C. NOELL, Assistant Secretary and Fiscal Agent.
WALTER'WYATT, General Counsel.
GEORGE B. VEST, Assisstant Counsel.
LEO H. PAULGER, Chief, Division of Examinations.
FRANK J. DRINNEN, Federal Reserve Examiner.
E. A. GOLDENWEISER, Director, Division of Research
and Statistics.
CARL E. PARRY, Assistant Director, Division of Research
and Statistics.
E. L. SMEAD, Chief, Division of Bank Operations.
J. R. VAN FOSSEN, Assisstant Chief, Division of Bank
Operations.
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
2
3
4
5
6
(BOSTON)
( N E W YORK)
(PHILADELPHIA)
(CLEVELAND)
(RICHMOND)
(ATLANTA)
7 (CHICAGO)
i
THOMAS M. STEELE.
GEORGE W. DAVISON.
HOWARD A. LOEB.
H. C. MCELDOWNEY
HOWARD BRUCE.
JOHN K. OTTLEY.
MELVIN A. TRAYLOR, Vice President.
8 (ST. LOUIS)
WALTER W. SMITH, President.
9 (MINNEAPOLIS)
THEODORE WOLD.
10 (KANSAS CITY)
WALTER S. MCLUCAS.
11 (DALLAS)
JOSEPH H. FROST.
12 (SAN FRANCISCO)
HENRY M. ROBINSON.
WALTER LICHTENSTEIN, Secretary
OFFICERS OF FEDERAL RESERVE BANES
Federal Reserve Bank
of—
Chairman
Boston
New York
F. H. Curtiss
J. H. Case
Philadelphia
Cleveland
Richmond
R. L. Austin__
L. B. WilliamsW. W. Hoxton
- . G. W. Norris
E. R. Fanchar
G. J. Seay
Oscar Newton
E. R. Black
Chicago
E. M. Stevens
J. B. McDougal
St. Louis
J. S. Wood.
W. McC. Martin
San Francisco
W. W. Paddock
W. R. Burgess
J. E. Crane
A. W. Gilbart
E. R. Kenzel
W. S. Logan
L. R. Rounds
L. F. Sailer
W. H. Hutt
M.J. Fleming
R. A. Young
G. L. Harrison
Atlanta
Minneapolis
KaDsas City
Dallas
Deputy governor
Governor
. M. L. McClure
C. C. Walsh
Isaac B. Newton
W. B. Geery
G. H. Hamilton
B. A. McKinney
J. U. Calkins
iAssistant deputy governor.
.
Cashier
W. Willett
C. H. Coe.»
R. M. Gidney.i
J. W. Jones, i
W. B. Matteson.i
J. M. Rice.» 1
Allan Sproul.
L. W. Knoke.i
C. A. Mcllhenny.
W. G. McCreedy.*
H. F. Strater.
C. A. Peple
R. H. Broaddus
W. S. Johns
H. F. Connifi
C. R. McKay
J. H. Dillard
0. M. Attebery
J. G. McConkey
G. H. Keesee.
J. S. Walden, jr.*
M. W. Bell.
W. S. McLarin, jr.»
W. C Bachman.»
0. J. Netterstrom.*
E. A. Delaney.i1
S. F. Gilmore.
A. H. HailLJ
F. N. Hall.*
G. 0. Hollocher.*
0. C. Phillips.*
H. I. Ziemer.
Harry Yaeger
F. C. Dunlop.*
TT T 7iftTT|Ar
C. A. WorthiDgton.— J. W. Helm.
T TV TTolm
Fred Harris.
R. R. Gilbert
W. 0. Ford.*
R. B. Coleman
W. M. Hale.
W. A. Day
Ira Clerk
J
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
Charlotte branch
Atlanta:
New Orleans branch...
Jacksonville branch
Birmingham branch
Nashville branch
Chicago:
Detroit branch
St. Louis:
Louisville branch
Memphis branch
Little Rock branch
Managing director
R. M. O'Hara.
C. F. McCombs.
J. C. Nevin.
Hugh Leach.
W. T. Clements.
Marcus Walker.
Hugh Foster.
J. H. Frye.
J. B. Fort, jr.
W. R. Cation.
J. T. Moore.
W. H. Glasgow.
A. F. Bailey.
Federal Reserve Bank of—
Minneapolis:
Helena branch
Kansas City:
Omaha branch
Denver branch
Oklahoma City branch..
Dallas:
El Paso branch. _
Houston branch___
San Antonio branch
San Francisco:
Los Angeles branch
Portland branch.._
Salt Lake City branch..
Seattle branch
Spokane branch
Managing director
R. E. Towle.
L. H. Earhart.
J. E. Olson.
C. E. Daniel.
J. L. Hermann.
W. D. Gentry.
M. Crump
W. N. Ambrose.
R. B. West.
W. L. Partner.
C. R. Shaw.
D. L. Davis.
SUBSCRIPTION PRICE OP BULLETIN
The FEDERAL RESERVE BULLETIN is the board's medium of communication with member
banks of the Federal reserve system and is the only official organ or periodical publication of
the board. The BULLETIN will be sent to all member banks without charge. To others the
subscription price, which covers the cost of paper and printing, is $2. Single copies will be
sold at 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions,
$2.60; single copies, 25 cents.
m
TABLE OF CONTENTS
Pago
Review of the month—Emergency banking legislation
Annual report of the Bank of France
113
149-152
Condition of all member banks on December 31, 1932 (from member bank call report No. 57)
202-203
National summary of business conditions
Financial, industrial, and commercial statistics:
Reserve bank credit, gold stock, money in circulation, etc
Member and nonmember bank credit—
All banks in the United States
All member banks
Weekly reporting member banks in leading cities
Brokers' loans
Acceptances and commercial paper
Discount rates and money rates
Bank suspensions and banks reopened
Member bank holdings of eligible assets (Government securities and eligible paper)
Security prices, security issues, United States Government securities
Production, employment, car loadings, and commodity prices
Merchandise exports and imports
Department stores—Indexes of sales and stocks
Freight-car loadings, by classes
Financial statistics for foreign countries:
Gold reserves of central banks and governments
Gold production
,
Gold movements
•
Government note issues and reserves
Bank for International Settlements
Central banks
Commercial banks
Discount rates of central banks
Money rates
Foreign exchange rates
Price movements—
Security prices
Wholesale prices
Retail food prices and cost of living
134
135-138
._.._.
141
139-141, 195
142, 196
142
143
145, 197
_ 144, 199-201
144
146
147, 204-206
148
148
148
153
154
154-156
157
157
158-160
161
162
162
163
164
164-165
165
Law department:
Constitutionality of legislation providing a unified commercial banking system for the United States 166-186
Joint Resolution authorizing Comptroller of the Currency to exercise additional powers
187
Collective investments of trust funds by national banks
187
Warehouse receipts securing bankers' acceptances
188
Federal reserve statistics by districts, etc.:
Banking and financial statistics
,
193-198
Industrial and commercial statistics
_.
_ 204-207
FEDERAL RESERVE BULLETIN
VOL. 19
MARCH, 1933
REVIEW OF THE MONTH
During the month of February and the first
few days of March, banking difficulties in different parts of the country
State bank holicaused the governors and legisdays
latures of many States temporarily to close the banks in those States or to
impose or authorize restrictions upon their
operations. On the morning of February 14
the Governor of Michigan declared a bank holiday to February 21, "for the preservation of
the public peace, health, and safety, and for the
equal safeguarding without preference of the
rights of all depositors." This holiday in
Michigan was extended, in effect, on February
21, and on February 25 a bank holiday was declared in Maryland, followed within a few days
by similar action in a large number of
other States. On February 25, a joint resolution was adopted by the Congress of the
United States authorizing the Comptroller of
the Currency to exercise with respect to national
banks such powers as State officials may have
with respect to State banks (see page 187). On
the morning of March 4, the Governor of the
State of New York issued a statement proclaiming Saturday and Monday to be bank holidays.
Similar action was taken in Illinois, Massachusetts, New Jersey, Pennsylvania, and elsewhere. On March 4, therefore, which was a
Saturday, the banks in almost all the States
were either closed or operating under restrictions.
On the morning of March 6, 1933, the
Proclamation of President of the United States
National bank issued the following proclaholiday
mation:
No. 3
BY THE PRESIDENT OF THE UNITED STATED
OF AMERICA
"A PROCLAMATION
"Whereas there have beenjheavy and unwarranted withdrawals of gold and currency from
our banking institutions for the purpose of
hoarding; and
" Whereas continuous and increasingly extensive speculative activity abroad in foreign
exchange has resulted in severe drains on the
Nation's stocks of gold; and
" Whereas these conditions have created a
national emergency; and
" Whereas it is in the best interests of all bank
depositors that a period of respite be provided
with a view to preventing further hoarding of
coin, bullion or currency or speculation in foreign exchange and permitting the application of
appropriate measures to protect the interests of
our people; and
" Whereas it is provided in section 5 (b) of the
Act of October 6, 1917 (40 Stat. L. 411), a&
amended, 'That the President may investigate, regulate, or prohibit, under such rules and
regulations as he may prescribe, by means of
licenses or otherwise, any transactions in foreign exchange and the export, hoarding, melting, or earmarkings of gold or silver coin or
bullion or currency * * * '; and
" Whereas it is provided in Section 16 of the
said Act 'that whoever shall willfully violate
any of the provisions of this Act or of any
license, rule, or regulation issued thereunder,
and whoever shall willfully violate, neglect, ,or
refuse to comply with any order of the President
issued in compliance with the provisions of this
Act, shall, upon conviction, be fined not more
than $10,000, or, if a natural person, imprisoned for not more than ten years, or
UKJ t i l ,
,
"Now, therefore, I, Franklin D. Roosevelt,
President of the United States of America, in
113
114
FEDERAL RESERVE BULLETIN
view of such national emergency and by virtue
of the authority vested in me by said Act and in
order to prevent the export, hoarding, or earmarking of gold or silver coin or bullion or currency, do hereby proclaim, order, direct and
declare that from Monday, the sixth day of
March, to Thursday, the ninth day of March,
Nineteen Hundred and Thirty Three, both
dates inclusive, there shall be maintained and
observed by all banking institutions and all
branches thereof located in the United States of
America, including the territories and insular
possessions, a bank holiday, and that during
said period all banking transactions shall be
suspended. During such holiday, excepting as
hereinafter provided, no such banking institution or branch shall pay out, export, earmark,
or permit the withdrawal or transfer in any
manner or by any device whatsoever, of any
gold or silver coin or bullion or currency or take
any other action which might facilitate the
hoarding thereof; nor shall any such banking
institution or branch pay out deposits, make
loans or discounts, deal in foreign exchange,
transfer credits from the United States to any
place abroad, or transact any other banking
business whatsoever.
" During such holiday, the Secretary of the
Treasury, with the approval of the President
and under such regulations as he may prescribe,
is authorized and empowered (a) to permit any
or all of such banking institutions to perform
any or all of the usual banking functions, (6) to
direct, require or permit the issuance of clearing house certificates or other evidences of
claims against assets of banking institutions,
and (c) to authorize and direct the creation in
such banking institutions of special trust accounts for the receipt of new deposits which
shall be subject to withdrawal on demand without any restriction or limitation and shall be
kept separately in cash or on deposit in Federal Reserve Banks or invested in obligations
of the United States.
"As used in this order the term 'banking institutions' shall include all Federal Reserve
banks, national banking associations, banks,
trust companies, savings banks, building and
loan associations, credit unions, or other corporations, partnerships, associations or persons,
engaged in the business of receiving deposits,
making loans, discounting business paper, or
transacting any other form of banking
business.
"In witness whereof, I have hereunto set my
hand and caused the seal of the United States
to be affixed.
MARCH, 193a
"Done in the City of Washington this 6th
day of March—1 a. m. in the year of our Lord
One Thousand Nine Hundred and Thirty-three,
and of the Independence of the United States
the One Hundred and Fifty-seventh.
[SEAL]
"FRANKLIN D. ROOSEVELT
"By the President:
"CORDELL HULL
"Secretary of State"
On March 9, 1933, the President sent the
following message to Congress:
Message to
Congress
"On March 3 banking operations in the United States ceased.
To review at this time the causes of this failure of our banking system is unnecessary.
Suffice it to say that the Government has
been compelled to step in for the protection of
depositors and the business of the nation.
"Our first task is to reopen all sound banks.
This is an essential preliminary to subsequent
legislation directed against speculations with the
funds of depositors and other violations of
positions of trust.
"In order that the first objective—the
opening of banks for the resumption of business—may be accomplished, I ask of the
Congress the immediate enactment of legislation giving to the executive branch of the
Government control over banks for the protection of depositors; authority forthwith to
open such banks as have already been ascertained to be in sound condition and other such
banks as rapidly as possible; and authority to
reorganize and reopen such banks as may be
found to require reorganization to put them
on a sound basis.
" I ask amendments to the Federal Reserve
Act to provide for such additional currency,
adequately secured, as it may become necessary
to issue to meet all demands for currency and
at the same time to achieve this end without
increasing the unsecured indebtedness of the
Government of the United States.
" I can not too strongly urge upon the Congress the clear necessity for immediate action.
A continuation of the strangulation of banking
facilities is unthinkable. The passage of the
proposed legislation will end this condition, and
I trust within a short space of time will result in
a resumption of business activities.
"In addition, it is my belief that this legislation will not only lift immediately all unwarranted doubts and suspicions in regards to
banks which are 100 per cent sound but will
115
FEDERAL RESERVE BULLETIN
MARCH, 1933
also mark the beginning of a new relationship
between the banks and the people of this country.
"The members of the new Congress will
realize, I am confident, the grave responsibility
which lies upon me and upon them.
"In the short space of five days it is impossible for us to formulate completed measures to
prevent the recurrence of the evils of the past.
This does not and should not, however, justify
any delay in accomplishing this first step.
"At an early moment I shall request of the
Congress two other measures which I regard as
of immediate urgency. With action taken
thereon we can proceed to the consideration of
a rounded program of national restoration.77
On March 9, 1933, following receipt of the
President's message, Congress
P a s s e d a n a c t " t 0 Provide relief in the existing national emergency in banking, and for other purposes.77
The text of the act is as follows:
[PUBLIC—No. 1—73D CONGRESS]
[H. R. 1491]
AN ACT
To provide relief in the existing national emergency in banking, and for
other purposes
Be it enacted by the Senate and House of Representatives of the United States ofAmerica in Congress assembled,
That the Congress hereby declares that a serious emergency exists and that it is imperatively necessary
speedily to put into effect remedies of uniform national
application.
TITLE I
SECTION 1. The actions, regulations, rules, licenses,
orders and proclamations heretofore or hereafter taken,
promulgated, made, or issued by the President of the
United States or the Secretary of the Treasury since
March 4, 1933, pursuant to the authority conferred by
subdivision (b) of section 5 of the Act of October 6,1917,
as amended, are hereby approved and confirmed.
SEC. 2. Subdivision (b) of section 5 of the Act of
October 6, 1917 (40 Stat. L. 411), as amended, is hereby
amended to read as follows:
"(b) During time of war or. during any other period
of national emergency declared by the President, the
President may, through any agency that he may
designate, or otherwise, investigate, regulate, or prohibit, under such rules and regulations as he may
prescribe, by means of licenses or otherwise, any transactions in foreign exchange, transfers of credit between
or payments by banking institutions as defined by the
President, and export, hoarding, melting, or earmarking
of gold or silver coin or bullion or currency, by any
person within the United States or any place subject
to the jurisdiction thereof; and the President may
require any person engaged in any transaction referred
to in this subdivision to furnish under oath, complete
information relative thereto, including the production
of any books of account, contracts, letters or other
papers, in connection therewith in the custody or
control of such person, either before or after such trans-
action is completed. Whoever willfully violates any
of the provisions of this subdivision or of any license,
order, rule or regulation issued thereunder, shall, upon
conviction, be fined not more than $10,000, or, if a
natural person, may be imprisoned for not more than
ten years, or both; and any officer, director, or agent of
any corporation who knowingly participates in such
violation may be punished by a like fine, imprisonment, or both. As used in this subdivision the term
'person' means an individual, partnership, association,
or corporation."
SEC. 3. Section 11 of the Federal Reserve Act is
amended by adding at the end thereof the following
new subsection:
" (n) Whenever in the judgment of the Secretary of
the Treasury such action is necessary to protect the
currency system of the United States, the Secretary of
the Treasury, in his discretion, may require any or all
individuals, partnerships, associations and corporations
to pay and deliver to the Treasurer of the United States
any or all gold coin, gold bullion, a-nd gold certificates
owned by such individuals, partnerships, associations
and corporations. Upon receipt of such gold coin, gold
bullion or gold certificates, the Secretary of the Treasury shall pay therefor an equivalent amount of any
other form of coin or currency coined or issued under
the laws of the United States. The Secretary of the
Treasury shall pay all costs of the transportation of
such gold bullion, gold certificates, coin, or currency,
including the cost of insurance, protection, and such
other incidental costs as may be reasonably necessary.
Any individual, partnership, association, or corporation
failing to comply with any requirement of the Secretary
of the Treasury made under this subsection shall be
subject to a penalty equal to twice the value of the gold
or gold certificates in respect of which such failure occurred, and such penalty may be collected by the
Secretary of the Treasury by suit or otherwise."
SEC. 4. In order to provide for the safer and more
effective operation of the National Banking System and
the Federal Reserve System, to preserve for the people
the full benefits of the currency provided for by the
Congress through the National Banking System and
the Federal Reserve System, and to relieve interstate
commerce of the burdens and obstructions resulting
from the receipt on an unsound or unsafe basis of deposits subject to withdrawal by check, during such
emergency period as the President of the United States
by proclamation may prescribe, no member bank of the
Federal Reserve System shall transact any banking
business except to such extent and subject to such regulations, limitations and restrictions as may be prescribed
by the Secretary of the Treasury, with the approval of
the President. Any individual, partnership, corporation, or association, or any director, officer or employee
thereof, violating any of the provisions of this section
shall be deemed guilty of a misdemeanor and, upon
conviction thereof, shall be fined not more than
$10,000 or, if a natural person, may, in addition to such
fine, be imprisoned for a term not exceeding ten years.
Each day that any such violation continues shall be
deemed a separate offense.
TITLE II
SEC. 201. This title may be cited as the "Bank Conservation Act."
SEC. 202. As used in this title, the term " b a n k "
means (1) any national banking association, and (2)
any bank or trust company located in the District of
Columbia and operating under the supervision of the
Comptroller of the Currency; and the term " S t a t e "
116
FEDEKAL RESERVE BULLETIN
means any State, Territory, or possession of the United
States, and the Canal Zone.
SEC. 203. Whenever he shall deem it necessary in
order to conserve the assets of any bank for the benefit
of the depositors and other creditors thereof, the Comptroller of the Currency may appoint a conservator for
such bank and require of him such bond and security
as the Comptroller of the Currency deems proper. The
conservator, under the direction of the Comptroller,
shall take possession of the books, records, and assets of
every description of such bank, and take such action
as may be necessary to conserve the assets of such
bank pending further disposition of its business as
provided by law. Such conservator shall have all the
rights, powers, and privileges now possessed by or
hereafter given receivers of insolvent national banks
and shall be subject to the obligations and penalties,
not inconsistent with the provisions of this title, to
which receivers are now or may hereafter become subject. During the time that such conservator remains
in possession of such bank, the rights of all parties
with respect thereto shall, subject to the other provisions of this title, be the same as if a receiver had
been appointed therefor. All expenses of any such
conservatorship shall be paid out of the assets of such
bank and shall be a lien thereon which shall be prior
to any other lien provided by this Act or otherwise.
The conservator shall receive as salary an amount no
greater than that paid to employees of the Federal
Government for similar services.
SEC. 204. The Comptroller of the Currency shall
cause to be made such examinations of the affairs of
such bank as shall be necessary to inform him as to the
financial condition of such bank, and the examiner shall
make a report thereon to the Comptroller of the Currency at the earliest practicable date.
SEC. 205. If the Comptroller of the Currency becomes
satisfied that it may safely be done and that it would be
in the public interest, he may, in his discretion, terminate the conservatorship and permit such bank to
resume the transaction of its business subject to such
terms, conditions, restrictions and limitations as he
may prescribe.
SEC. 206. While such bank is in the hands of the conservator appointed by the Comptroller of the Currency,
the Comptroller may require the conservator to set
aside and make available for withdrawal by depositors
and payment to other creditors, on a ratable basis, such
amounts as in the opinion of the Comptroller may safely
be used for this purpose; and the Comptroller may, in
his discretion, permit the conservator to receive deposits, but deposits received while the bank is in the hands
of the conservator shall not be subject to any limitation
as to payment or withdrawal, and such deposits shall
be segregated and shall not be used to liquidate any
indebtedness of such bank existing at the time that a
conservator was appointed for it, or any subsequent
indebtedness incurred for the purpose of liquidating any
indebtedness of such bank existing at the time such
conservator was appointed. Such deposits received
while the bank is in the hands of the conservator shall
be kept on hand in cash, invested in the direct obligations of the United States, or deposited with a Federal
reserve bank. The Federal reserve banks are hereby
authorized to open and maintain separate deposit
accounts for such purpose, or for the purpose of receiving deposits from State officials in charge of State banks
under similar circumstances.
SEC. 207. In any reorganization of any national
banking association under a plan of a kind which, under
existing law, requires the consent, as the case may be,
(a) of depositors and other creditors or (b) of stock-
MABCH, 1933
holders or (c) of both depositors and other creditors and
stockholders, such reorganization shall become effective
only (1) when the Comptroller of the Currency shall be
satisfied that the plan of reorganization is fair and
equitable as to all depositors, other creditors and stockholders and is in the public interest and shall have approved the plan subject to such conditions, restrictions
and limitations as he may prescribe and (2) when, after
reasonable notice of such reorganization, as the case
may require, (A) depositors and other creditors of such
bank representing at least 75 per cent in amount of its
total deposits and other liabilities as shown by the
books of the national banking association or (B) stockholders owning at least two-thirds of its outstanding
capital stock as shown by the books of the national
banking association or (C) both depositors and other
creditors representing at least 75 per cent in amount of
the total deposits and other liabilities and stockholders
owning at least two-thirds of its outstanding capital
stock as shown by the books of the national banking
association, shall have consented in writing to the plan
of reorganization: Provided, however. That claims of
depositors or other creditors which will be satisfied in
full under the provisions of the plan of reorganization
shall not be included among the total deposits and other
liabilities of the national banking association in determining the 75 per cent thereof as above provided.
When such reorganization becomes effective, all books,
records, and assets of the national banking association
shall be disposed of in accordance with the provisions
of the plan and the affairs of the national banking association shall be conducted by its board of directors in
the manner provided by the plan and under the conditions, restrictions and limitations which may have been
prescribed by the Comptroller of the Currency. In any
reorganization which shall have been approved and shall
have become effective as provided herein, all depositors
and other creditors and stockholders of such national
banking association, whether or not they shall have
consented to such plan of reorganization, shall be fully
and in all respects subject to and bound by its provisions, and claims of all depositors and other creditors
shall be treated as if they had consented to such plan of
reorganization.
SEC. 208. After fifteen days after the affairs of a bank
shall have been turned back to its board of directors
by the conservator, either with or without a reorganization as provided in section 207 hereof, the provisions
of section 206 of this title with respect to the segregation
of deposits received while it is in the hands of the conservator and with respect to the use of such deposits
to liquidate the indebtedness of such bank shall no
longer be effective: Provided, That before the conservator shall turn back the affairs of the bank to its board
of directors he shall cause to be published in a newspaper published in the city, town or county in which
such bank is located, and if no newspaper is published
in such city, town or county, in a newspaper to be
selected by the Comptroller of the Currency published
in the State in which the bank is located, a notice in
form approved by the Comptroller, stating the date
on which the affairs of the bank will be returned to its
board of directors and that the said provisions of section 206 will not be effective after fifteen days after
such date; and on the date of the publication of such
notice the conservator shall immediately send to every
person who is a depositor in such bank under section
206 a copy of such notice by registered mail addressed
to the last known address of such person as shown
by the records of the bank, and the conservator shall
send similar notice in like manner to every person
making deposit in such bank under section 206 after
FEDERAL RESERVE BULLETIN
MARCH, 1933
the date of such newspaper publication and before the
time when the affairs of the bank are returned to its
directors.
SEC. 209. Conservators appointed pursuant to the
provisions of this title shall be subject to the provisions of and to the penalties prescribed by section 5209
of the Revised Statutes (U. S. C, Title 12, sec. 592);
and sections 112, 113, 114, 115, 116 and 117 of the
Criminal Code of the United States (U. S. C, Title
18, sees. 202, 203, 204, 205, 206 and 207), in so far as
applicable, are extended to apply to contracts, agreements, proceedings, dealings, claims and controversies
by or with any such conservator or the Comptroller of
the Currency under the provisions of this title.
SEC. 210. Nothing in this title shall be construed to
impair in any manner any powers of the President, the
Secretary of the Treasury, the Comptroller of the Currency, or the Federal Reserve Board.
SEC. 211. The Comptroller of the Currency is hereby
authorized and empowered, with the approval of the
Secretary of the Treasury, to prescribe such rules and
regulations as he may deem necessary in order to carry
out the provisions of this title. Whoever violates any
rule or regulation made pursuant to this section shall
be deemed guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $5,000, or
imprisoned not more than one year, or both.
TITLE III
SEC. 301. Notwithstanding any other provision of
law, any national banking association may, with the
approval of the Comptroller of the Currency and by
vote of shareholders owning a majority of the stock of
such association, upon not less than five days' notice,
given by registered mail pursuant to action taken by
its board of directors, issue preferred stock in such
amount and with such par value as shall be approved
by said Comptroller, and make such amendments to its
articles of association as may be necessary for this
purpose; but, in the case of any newly organized national banking association which has not yet issued
common stock, the requirement of notice to and vote
of shareholders shall not apply. No issue of preferred
stock shall be valid until the par value of all stock so
issued shall be paid in.
SEC. 302. (a) The holders of such preferred stock
shall be entitled to cumulative dividends at a rate not
exceeding 6 per centum per annum, but shall not be
held individually responsible as such holders for any
debts, contracts, or engagements of such association
and shall not be liable for assessments to restore impairments in the capital of such association as now provided by law with reference to holders of common
stock. Notwithstanding any other provision of law,
the holders of such preferred stock shall have such voting rights, and such stock shall be subject to retirement
in such manner and on such terms and conditions, as
may be provided in the articles of association with the
approval of the Comptroller of the Currency.
(b) No dividends shall be declared or paid on common stock until the cumulative dividends on the preferred stock shall have been paid in full; and, if the association is placed in voluntary liquidation or a conservator
or a receiver is appointed therefor, no payments shall
be made to the holders of the common stock until the
holders of the preferred stock shall have been paid in
full the par value of such stock plus all accumulated
dividends.
SEC. 303. The term "common stock" as used in this
title means stock of national banking associations othef
than preferred stock issued under the provisions of this
title. The term "capital" as used in provisions of law
161485—33
2
117
relating to the capital of national banking associations
shall mean the amount of unimpaired common stock
plus the amount of preferred stock outstanding and
unimpaired; and the term "capital stock", as used in
section 12 of the Act of March 14, 1900, shall mean only
the amount of common stock outstanding.
SEC. 304. If in the opinion of the Secretary of the
Treasury any national banking association or any
State bank or trust company is in need of funds for
capital purposes either in connection with the organization or reorganization of such association, State bank
or trust company or otherwise, he may, with the
approval of the President, request the Reconstruction
Finance Corporation to subscribe for preferred stock
in such association, State bank or trust company, or
to make loans secured by such stock as collateral, and
the Reconstruction Finance Corporation may comply
with such request. The Reconstruction Finance Corporation may, with the approval of the Secretary of
the Treasury, and under such rules and regulations as
he may prescribe, sell in the open market or otherwise
the whole or any part of the preferred stock of any
national banking association, State bank or trust company acquired by the Corporation pursuant to this
section. The amount of notes, bonds, debentures, and
other such obligations which the Reconstruction Finance Corporation is authorized and empowered to issue
and to have outstanding at any one time under existing
law is hereby increased by an amount sufficient to carry
out the provisions of this section.
TITLE IV
SEC. 401. The sixth paragraph of Section 18 of the
Federal Reserve Act is amended to read as follows:
"Upon the deposit with the Treasurer of the United
States, (a) of any direct obligations of the United
States or (b) of any notes, drafts, bills of exchange, or
bankers' acceptances acquired under the provisions of
this Act, any Federal reserve bank making such deposit
in the manner prescribed by the Secretary of the Treasury shall be entitled to receive from the Comptroller of
the Currency circulating notes in blank, duly registered
and countersigned. When such circulating notes are
issued against the security of obligations of the United
States, the amount of such circulating notes shall be
equal to the face value of the direct obligations of the
United States so deposited as security; and, when
issued against the security of notes, drafts, bills of exchange and bankers' acceptances acquired under the
provisions of this Act, the amount thereof shall be equal
to not more than 90 per cent of the estimated value of
such notes, drafts, bills of exchange and bankers' acceptances so deposited as security. Such notes shall
be the obligations of the Federal reserve bank procuring the same, shall be in form prescribed by the Secretary of the Treasury, shall be receivable at par in all
parts of the United States for the same purposes as are
national bank notes, and shall be redeemable in lawful
money of the United States on presentation at the
United States Treasury or at the bank of issue. The
Secretary of the Treasury is authorized and empowered
to prescribe regulations governing the issuance, redemption, replacement, retirement and destruction of
such circulating notes and the release and substitution
of security therefor. Such circulating notes shall be
subject to the same tax as is provided by law for the
circulating notes of national banks secured by 2 per
cent bonds of the United States. No such circulating
notes shall be issued under this paragraph after the
President has declared by proclamation that the
emergency recognized by the President by proclamation of March 6, 1933, has terminated, unless such cir-
118
FEDERAL RESERVE BULLETIN
culating notes are secured by deposits of bonds of the
United States bearing the circulation privilege. When
required to do so by the Secretary of the Treasury, each
Federal reserve agent shall act as agent of the Treasurer
of the United States or of the Comptroller of the Currency, or both, for the performance of any of the functions which the Treasurer or the Comptroller may be
called upon to perform in carrying out the provisions
of this paragraph. Appropriations available for distinctive paper and printing United States currency or
national bank currency are hereby made available for
the production of the circulating notes of Federal reserve banks herein provided; but the United States
shall be reimbursed by the Federal reserve bank to
which such notes are issued for all expenses necessarily
incurred in connection with the procuring of such notes
and all other expenses incidental to their issue, redemption, replacement, retirement and destruction."
SEC. 402. Section 10 (b) of the Federal Reserve Act,
as amended, is further amended to read as follows:
"SEC. 10(b). In exceptional and exigent circumstances, and when any member bank has no further
eligible and acceptable assets available to enable it to
obtain adequate credit accommodations through
rediscounting at the Federal reserve bank or any other
method provided by this Act other than that provided
by section 10 (a), any Federal reserve bank, under
rules and regulations prescribed by the Federal Reserve
Board, may make advances to such member bank on
its time or demand notes secured to the satisfaction of
such Federal reserve bank. Each such note shall bear
interest at a rate not less than 1 per centum per annum
higher than the highest discount rate in effect at such
Federal reserve bank on the date of such note. No
advance shall be made under this section after March
3, 1934, or after the expiration of such additional period
not exceeding one year as the President may prescribe."
SEC. 403. Section 13 of the Federal Reserve Act, as
amended, is amended by adding at the end thereof the
following new paragraph:
"Subject to such limitations, restrictions and regulations as the Federal Reserve Board may prescribe, any
Federal reserve bank may make advances to any individual, partnership or corporation on the promissory
notes of such individual, partnership or corporation
secured by direct obligations of the United States.
Such advances shall be made for periods not exceeding
90 days and shall bear interest at rates fixed from time
to time by the Federal reserve bank, subject to the
review and determination of the Federal Reserve Board.
TITLE V
MARCH, 1933
On March 9, 1933, after the passage of the
emergency banking act, the
Continuation of President issued the following
bank holiday
proclamation continuing the
bank holiday:
" B Y THE PRESIDENT OF THE UNITED STATES
OF AMERICA
"A PROCLAMATION
"Whereas, on March 6, 1933, I, Franklin D.
Roosevelt, President of the United States of
America, by Proclamation declared the existence of a national emergency and proclaimed a
bank holiday extending from Monday the 6th
day of March to Thursday the 9th of March,
1933, both dates inclusive, in order to prevent
the export, hoarding or earmarking of gold or
silver coin, or bullion or currency, or speculation in foreign exchange; and
"Whereas, under the Act of March 9,1933, all
Proclamations heretofore or hereafter issued
by the President purusant to the authority conferred by Section 5 (b) of the Act of October 6,
1917, as amended, are approved and confirmed;
and
"Whereas, said national emergency still
continues, and it is necessary to take further
measures extending beyond March 9, 1933, in
order to accomplish such purposes:
"Now, therefore, I, Franklin D. Roosevelt,
President of the United States of America, in
view of such continuing national emergency and
by virtue of the authority vested in me by
Section 5 (b) of the Act of October 6, 1917
(40 Stat. L., 411) as amended by the Act of
March 9, 1933, do hereby proclaim, order,
direct and declare that all the terms and provisions of said Proclamation of March 6,1933, and
the regulations and orders issued thereunder
are hereby continued in full force and effect
until further proclamation by the President.
"In witness whereof I have hereunto set my
hand and have caused the seal of the United
States to be affixed.
"Done in the District of Columbia, this 9th
day of March, in the Year of Our Lord One
Thousand Nine Hundred and Thirty-three, and
of the Independence of the United States the
One Hundredth and Fifty-seventh.
SEC. 501. There is hereby appropriated, out of any
money in the Treasury not otherwise appropriated, the
sum of $2,000,000, which shall be available for expenditure, under the direction of the President and in his
discretion, for any purpose in connection with the
carrying out of this Act.
SEC. 502. The right to alter, amend, or repeal this
Act is hereby expressly reserved. If any provision of
this Act, or the application thereof to any person or
[SEAL.]
"FRANKLIN D. ROOSEVELT
circumstances, is held invalid, the remainder of the
Act, and the application of such provision to other "By the President:
"CORDELL HULL
persons or circumstances, shall not be affected thereby.
"Secretary of State"
Approved March 9th 1933 8.30 p. m.
MARCH, 1933
FEDERAL RESERVE BULLETIN
119
On March 10 and March 18, 1933, the coin, gold bullion or gold certificates except as
President issued the following Executive orders: authorized by the Secretary of the Treasury,
nor to allow withdrawal of any currency for
" EXECUTIVE ORDER
hoarding, nor to engage in any transaction in
"By virtue of the authority vested in me by foreign exchange except such as may be undersection 5 (b) of the Act of October 6, 1917 (40 taken for legitimate and normal business reStat. L., 411), as amended by the Act of quirements, for reasonable traveling and other
March 9, 1933, and by section 4 of the said personal requirements, and for the fulfillment
Act of March 9, 1933, and by virtue of all other of contracts entered into prior to March 6,1933.
"Every Federal reserve bank is authorized
authority vested in me, I hereby issue the
and instructed to keep itself currently infollowing Executive order.
"The Secretary of the Treasury is authorized formed as to transactions in foreign exchange
and empowered under such regulations as he entered into or consummated within its district
may prescribe to permit any member bank of and shall report to the Secretary of the Treasury
the Federal reserve system and any other all transactions in foreign exchange which are
banking institution organized under the laws of prohibited.
"FRANKLIN D. ROOSEVELT.
the United States, to perform any or all of their
"The
WHITE
HOUSE,
usual banking functions, except as otherwise
prohibited.
"March 10, 1933."
"The appropriate authority having imme"EXECUTIVE ORDER
diate supervision of banking institutions in
each State or any place subject to the jurisdic"By virtue of the authority vested in me by
tion of the United States is authorized and
section
5(b) of the Act of October 6, 1917 (40
empowered under such regulations as such
authority may prescribe to permit any banking Stat. L., 411) as amended by the Act of
institution in such State or place, other than March 9, 1933, and by section 4 of the said Act
banking institutions covered by the foregoing of March 9, 1933 and by virtue of all other
paragraph, to perform any or all of their usual authority vested in me, I hereby issue the
banking functions, except as otherwise pro- following executive order.
" Whenever the appropriate authority haying
hibited.
"All banks which are members of the Federal immediate supervision of any banking institureserve system, desiring to reopen for the per- tion located in any State or place subject to the
formance of all usual and normal banking jurisdiction of the United States, which is a
functions, except as otherwise prohibited, shall member of the Federal reserve system and
apply for a license therefor to the Secretary of which has not been licensed by the Secretary^of
the Treasury to resume its usual banking
the Treasury. Such application shall be filed functions,
deem it necessary or advisable
immediately through the Federal reserve banks. in order to shall
conserve
the assets of such banking
The Federal reserve bank shall then transmit institution for the benefit
of the depositors or
such applications to the Secretary of the other creditors, such authority
in accordTreasury. Licenses will be issued by the ance with the provisions of the may,
applicable
laws
Federal reserve bank upon approval of the of such State or place, appoint such appropriate
Secretary of the Treasury. The Federal reas may be authorized under such laws
serve banks are hereby designated as agents official
to
conserve
assets of such banking instituof the Secretary of the Treasury for the re- tion pendingthe
further disposition of its business
ceiving of application and the issuance of as provided by such laws.
licenses in his behalf and upon his instructions.
"This order shall not authorize any such
"Until further order, no individual, partner- member
bank to reopen for the performance of
ship, association, or corporation, including any usual
and
normal functions until it shall have
banking institution, shall export or otherwise
a license from the Secretary of the
remove or permit to be withdrawn from the received
Treasury as provided in Executive Order of
United States or any place subject to the March 10, 1933.
jurisdiction thereof any gold coin, gold bullion,
"FRANKLIN D. ROOSEVELT.
or gold certificates, except in accordance with
" T H E WHITE HOUSE,
regulations prescribed by or under license
"March 18, 1933."
issued by the Secretary of the Treasury.
"No permission to any banking institution
On March 11, 1933, the President issued the
to perform any banking functions shall authorize such institution to pay out any gold following statement to the press:
120
FEDERAL RESERVE BULLETIN
" I am glad to be able to
announce that technical difficulties which operated to delay
the opening of banks, both State and national,
have finally substantially been overcome by
tireless work on the part of the officials of the
Treasury and the Federal reserve system, and
that a definite program has been arranged consisting of successive steps by which banks
throughout the country will be opened progressively on Monday, Tuesday, and Wednesday mornings.
"The Secretary of the Treasury will issue
licenses to banks which are members of the
Federal reserve system, whether national bank
or State, located in each of the twelve Federal
reserve bank cities, to open Monday morning.
"So also the State authorities having supervision over State banks which are not members
of the Federal reserve system will be asked to
permit any such State institutions located in
any one of the twelve Federal reserve bank
cities to open for business on Monday morning
if in their judgment they deem it wise to do so.
"Under this progressive plan, banks located
in any city haying an active, recognized clearing
house association, of which there are 250 cities,
will receive licenses for reopening on Tuesday
morning, and banks located elsewhere will
receive their licenses permitting reopening for
Wednesday.
"Time is thus afforded for the necessary
shipments of currency provided under the
Emergency Bank Act from reserve bank
centers to clearing-house cities and banks in the
smaller communities.
"There were enormous technical problems to
be solved before these mechamcs could be
worked out and before the actual currency
could be in the bank when the doors opened.
"The Constitution has laid upon me the duty
of conveying the condition of the country to
the Congress assembled at Washington. I
believe I have a like duty to convey to the
people themselves a clear picture of the situation at Washington itself whenever there is
danger of any confusion as to what the Government is undertaking.
"That there may be a clear understanding as
to just what has taken place during the last
two days since the passage of this Act it is my
intention, over the national radio networks, at
ten o'clock Sunday evening, to explain clearly
and in simple language to all of you just what
has been achieved and the sound reasons which
underlie this declaration to you.
"The fact that banks will be opened under
this plan does not mean that anyone should
Statement by
the President
MARCH, 1933
draw the inference that the banks opening
Monday are in any different condition as to
soundness from the banks licensed to open on
Tuesday or Wednesday or any subsequent
day/'
On March 12, 1933, the President delivered
Address by the over the radio, at 10 p. m.,
President
^foe following address relative
to the banking situation:
" I want to talk for a few minutes with the
people of the United States about banking—
with the comparatively few who understand
the mechanics of banking, but more particularly
with the overwhelming majority who use
banks for the making of deposits and the
drawing of checks. I want to tell you what
has been done in the last few days, why it was
done, and what the next steps are going to be.
I recognize that the many proclamations from
State capitals and from Washington, the legislation, the Treasury regulations, etc., couched
for the most part in banking and legal terms,
should be explained for the benefit of the average citizen. I owe this in particular because of
the fortitude and good temper with which
everybody has accepted the inconvenience and
hardships of the banking holiday. I know
that when you understand what we in Washington have been about I shall continue to
have your cooperation as fully as I have had
your sympathy and help during the past week.
"First of all, let me state the simple fact
that when you deposit money in a bank the
bank does not put the money into a safe deposit vault. It invests your money in many
different forms of credit—bonds, commercial
paper, mortgages and many other kinds of
loans. In other words, the bank puts your
money to work to keep the wheels of industry
and of agriculture turning around. A comparatively small part of the money you put
into the bank is kept in currency—an amount
which in normal times is wholly sufficient to
cover the cash needs of the average citizen.
In other words, the total amount of all the
currency in the country is only a small fraction
of the total deposits in all of the banks.
"What, then, happened during the last few
days of February and the first few days of
March? Because of undermined confidence
on the part of the public, there was a general
rush by a large portion of our population to
turn bank deposits into currency or gold—a
rush so great that the soundest banks could not
get enough currency to meet the demand. The
reason for this was that on the spur of the
MARCH, 1933
FEDERAL RESERVE BULLETIN
moment it was, of course, impossible to sell
perfectly sound assets of a bank and convert
them into cash except at panic prices far below
their real value.
"By the afternoon of March 3 scarcely a
bank in the country was open to do business.
Proclamations temporarily closing them in
whole or in part had been issued by the Governors in almost all the States.
" I t was then that I issued the proclamation
providing for the nation-wide bank holiday, and
this was the first step in the Government's reconstruction of ourfinancialand economic fabric.
"The second step was the legislation
promptly and patriotically passed by the
Congress confirming my proclamation and
broadening my powers so that it became
possible in view of the requirement of time to
extend the holiday and lift the ban of that
holiday gradually. This law also gave authority to develop a program of rehabilitation of
our banking facilities. I want to tell our
citizens in every part of the Nation that the
National Congress—Republicans and Democrats alike—showed by this action a devotion
to public welfare and a realization of the emergency and the necessity for speed that is difficult to match in our history.
"The third stage has been the series of
regulations permitting the banks to continue
their functions to take care of the distribution
of food and household necessities and the payment of pay rolls.
"This bank holiday, while resulting in many
cases in great inconvenience, is affording us the
opportunity to supply the currency necessary
to meet the situation. No sound bank is a
dollar worse off than it was when it closed its
doors last Monday. Neither is any bank
which may turn out not to be in a position for
immediate opening. The new law allows the
twelve Federal reserve banks to issue additional
currency on good assets and thus the banks
which reopen will be able to meet every legitimate call. The new currency is being sent out
by the Bureau of Engraving and Printing in
large volume to every part of the country. It
is sound currency because it is backed by actual,
good assets.
"A question you will ask is this: Why are all
the banks not to be reopened at the same time?
The answer is simple. Your Government does
not intend that the history of the past few years
shall be repeated. We do not want and will not
have another epidemic of bank failures.
"As a result we start to-morrow, Monday,
with the opening of banks in the twelve Federal
reserve bank cities—those banks which on first
121
examination by the Treasury have already been
found to be all right. This will be followed
on Tuesday by the resumption of all their
functions by banks already found to be sound
in cities where there are recognized clearing
houses. That means about 250 cities of the
United States.
"On Wednesday and succeeding days banks
in smaller places all through the country will
resume business, subject, of course, to the Government's physical ability to complete its survey. It is necessary that the reopening of banks
be extended over a period in order to permit the
banks to make applications for the necessary
loans, to obtain currency needed to meet their
requirements and to enable the Government to
make common-sense check-ups.
' 'Let me make it clear to you that if your bank
does not open the first day you are by no means
justified in believing that it will not open. A
bank that opens on one of the subsequent days
is in exactly the same status as the bank that
opens to-morrow.
" I know that many people are worrying
about State banks not members of the Federal
reserve system. These banks can and will
receive assistance from member banks and from
the Reconstruction Finance Corporation.
"These State banks are following the same
course as the national banks except that they
get their licenses to resume business from the
State authorities, and these authorities have
been asked by the Secretary of the Treasury to
permit their good banks to open up on the same
schedule as the national banks. I am confident
that the State banking departments will be ascareful as the National Government in the
policy relating to the opening of banks and will
follow the same broad policy.
" I t is possible that when the banks resume a
very few people who have not recovered from
their fear may again begin withdrawals. Let
me make it clear that the banks will take care of
all needs and it is my belief that hoarding
during the past week has become an exceedingly
unfashionable pastime.
" I t needs no prophet to tell you that when
the people find that they can get their money—
that they can get it when they want it for all
legitimate purposes—the phantom of fear will
soon be laid. People will again be glad to have
their money where it will be safely taken care
of and where they can use it conveniently at
any time. I can assure you that it is safer to
keep your money in a reopened bank than
under the mattress.
"The success of our whole great national program depends, of course, upon the cooperation
122
FEDERAL RESERVE BULLETIN
of the public—on its intelligent support and use
of a reliable system.
"Kemember that the essential accomplishment of the new legislation is that it makes it
possible for banks more readily to convert their
assets into cash than was the case before.
More liberal provision has been made for banks
to borrow on these assets at the reserve banks
and more liberal provision has also been made
for issuing currency on the security of these
good assets. This currency is not fiat currency.
It is issued only on adequate security—and
every good bank has an abundance of such
security.
"One more point before I close. There will
be, of course, some banks unable to reopen
without being reorganized. The new law
allows the Government to assist in making
these reorganizations quickly and effectively
and even allows the Government to subscribe
to at least a part of new capital which may
be required.
" I hope you can see from this elemental
recital of what your Government is doing that
there is nothing complex or radical in the
process.
"We had a bad banking situation. Some of
our bankers had shown themselves either incompetent or dishonest in their handling of the
people's funds. They had used the money
entrusted to them in speculations and unwise
loans. This was, of course, not true in the
vast majority of our banks, but it was true in
enough of them to shock the people for a time
into a sense of insecurity and to put them into
a frame of mind where they did not differentiate, but seemed to assume that the acts of a
comparative few had tainted them all. I t was
the Government's job to straighten out this
situation and do it as quickly as possible—and
the job is being performed.
" I do not promise you that every bank will
be reopened or that individual losses will not
be suffered, but there will be no losses that
possibly could be avoided; and there would
have been more and greater losses had we continued to drift. I can even promise you salvation for some, at least, of the sorely pressed
banks. We shall be engaged not merely in
reopening sound banks but in the creation of
sound banks through reorganization.
" I t has been wonderful to me to catch the
note of confidence from all over the country.
I can never be sufficiently grateful to the people
for the loyal support they have given me in
their acceptance of the judgment that has
dictated our course, even though all our
processes may not have seemed clear to them.
MARCH, 1933
"After all, there is an element in the readjustment of our financial system more important
than currency, more important than gold, and
that is the confidence of the people.
"Confidence and courage are the essentials of
success in carrying out our plan. You people
must have faith; you must not be stampeded
by rumors or guesses. Let us unite in banishing fear. We have provided the machinery to
restore our financial system; it is up to you to
support and make it work.
" I t is your problem no less than it is mine.
Together we can not fail."
The Secretary of the Treasury, under the
authority conferred upon him by the President's
proclamations declaring and
Regulations by continuing& the bank holiday,
the Secretary of .
„ __ .
.
the Treasury
issued the following regulations
during the period March 6,
1933, to March 18, 1933:
REGULATION NO. 1 (MARCH 6)
The Secretary of the Treasury has authorized all
Federal reserve banks and all other banking institutions
to make change by the exchange of currency and/or
coin of various denominations for an exactly equal
amount of currency and/or coin of other denominations,
but no gold or gold certificates shall be paid out in
making change.
REGULATION NO. 2 (MARCH 6)
All banking institutions may allow their customers
free access to the safety deposit boxes and safes rented
to such customers.
REGULATION NO. 3 (MARCH 6)
All banking institutions may upon request return
intact and without restriction all cash, checks, and
other items delivered for deposit or collection which
were received after the last closing of business hours
and have not been entered on the books of such
banking institution.
REGULATION NO. 4 (MARCH 6)
All banking institutions may continue, in accordance with usual practice, to cash checks drawn on the
Treasurer of the United States, provided that no gold
or gold certificates shall be paid out.
REGULATION NO. 5 (MARCH 6)
Any banking institution may accept payments in
cash or any other form acceptable to it on account or
in settlement of obligations payable at or to such
institution.
REGULATION NO. 6 (MARCH 6)
Any banking institution may handle and collect
drafts or other documents in connection with the
shipment, transportation or delivery of food or feed
products, may pay out or permit the withdrawal of
FEDEEAL EESEEVE BULLETIN
MARCH, ]
123
vided, however, that (1) every precaution shall be taken
to prevent hoarding or the unnecessary withdrawal of
currency; (2) no State banking institution shall engage
in any transaction under this regulation which is in violation of State or Federal law or of any regulation issued
thereunder; (3) no national banking association shall
engage in any transaction under this section which is in
violation of any Federal law or of any order or regulation issued by the Comptroller of the Currency; and (4)
no gold or gold certificates shall be paid out. Each
REGULATION NO. 7 (MARCH 6)
banking institution and its directors and officers will be
Deposits heretofore received by any banking institu- held strictly accountable for faithful compliance with
tion pursuant to agreement or legislative authority the spirit and purpose as well as the letter of this
providing for segregation and for repayment without regulation.
Federal reserve banks may carry on such functions as may
restriction may be paid on demand. Any banking institution which was lawfully engaged in the business of be necessary to facilitate transactions authorized by this
receiving deposits prior to March 6, 1933, may create regulation.
In order to enable member banks of the Federal reserve
special trust accounts for the receipt of new deposits
which shall be subject to withdrawal on demand with- system to meet the needs of their respective communities to
out any restriction or limitation and shall be kept sepa- the extent authorized by this regulation Federal reserve
rately in cash or on deposit in Federal reserve banks or banks may make advances to such member banks under the
invested in obligations of the United States. Federal conditions set forth in section 10 (b) of the Federal reserve
reserve banks may open special accounts on their books act as amended by the act of March 9,1933, and in accordfor their member banks and temporarily for nonmember ance with authority granted by the Federal Reserve Board.
In addition, in order to enable individuals, partnerbanjcs and may receive in such special accounts the
proceeds of new deposits received by such banking in- ships and corporations to meet their immediate pay roll
stitutions. In making deposits with the Federal reserve requirements, Federal reserve banks may make temporary
bank pursuant to this regulation the depositing bank advances to such individuals, partnerships and corporashall in the case of each deposit indicate to the Federal tions on their promissory notes secured by direct obligations
reserve bank by symbol or otherwise that the funds so of the United States in accordance with authority granted
deposited represent new deposits made under this regu- by the Federal Reserve Board.
lation. Upon receipt of such deposits such Federal
reserve bank shall credit the same in the special acREGULATION NO. 11 (MARCH 7)
count of the depositing bank herein provided for and
Any
bank
having
a branch in a foreign country may
shall hold the same solely for repayment to such bank.
Federal reserve banks shall permit the withdrawal of deposit collateral in the United States to secure adany part or all of such new deposits by the depositing vances to such branch in a foreign country, provided
bank without restriction provided that the depositing such transaction does not involve any transfer of credit
bank shall in such order or request for withdrawal indi- from the United States to a foreign country, and any
cate to the Federal reserve bank by symbol or otherwise bank having a branch in an insular possession of the
that such withdrawal is to be made from such special United States may deposit United States Government
account, provided however that no banking institu- securities or other collateral for a similar purpose when
tion shall pay out or permit the withdrawal of any gold under the President's proclamation advances of local
currency in the insular possession may lawfully be
or gold certificates.
made.
such amounts of currency as shall be necessary in the
judgment of such banking institution in connection
with such shipment, transportation or delivery of
food or feed products, and may perform such other
banking functions as may be essential to the shipment,
transportation or delivery of food or feed products,
provided, however, that no banking institution shall
pay out or permit the withdrawal of any gold or gold
certificates.
REGULATION NO. 8 (MARCH 7)
REGULATION NO. 12 (MARCH 7)
Where settlement for checks charged by drawee
institutions to the drawers' accounts on its books on or
before March 4, 1933, is incomplete, settlement may
be completed where such settlement does not involve
the payment of money or currency.
Clearing house associations and other associations
organized to provide an adequately secured medium
of temporary exchange, are hereby permitted to issue
certificates against sound assets of banking institutions,
such certificates to be deliverable by each institution
to its creditors and depositors on a pro rata basis,
provided, however, that no such certificates shall be
issued before Friday, March 10, 1933, without the consent of the Secretary of the Treasury addressed to the
clearing house or other association proposing to issue
such certificates, and further provided that this permission may be revoked in the event that a national
plan to meet the existing emergency is proposed by the
Secretary of the Treasury if in his opinion the success
of such plan would be inconsistent with the operation
of the certificate plan.
REGULATION NO. 9 (MARCH 7)
Any banking institution may deliver to the person
entitled thereto properly identified documents and
securities held by such institution for safekeeping.
REGULATION NO. 10 (MARCH 7, AS AMENDED ON MARCH 10
BY ADDITION OF MATTER IN ITALICS)
Any national or State banking institution may exercise its usual banking functions to such extent as its
situation shall permit and as shall be absolutely necesREGULATION NO. 13 (MARCH 7)
sary to meet the needs of its community for food, mediAny banking institution lawfully engaged in the
cine, other necessities of life, for the relief of distress, for
the payment of usual salaries and wages, for necessary business of acting as trustee, executor, administrator,
current expenditures for the purpose of maintaining em- registrar of stocks and bonds, transfer agent, guardian
ployment, and for other similar essential purposes. of estates, assignee, receiver, committee of estates of
Banking institutions may carry out such transactions as lunatics, or in any other fiduciary capacity may conmay be necessary to aid banking institutions in other tinue to transact such business in the normal and usual
communities to meet the necessities set forth above. Pro- manner; provided that in the conduct of said business,
124
FEDERAL RESERVE BULLETIN
MARCH, 1933
except as may be permitted by other regulations of the banking functions except as prohibited by the ExecuSecretary of the Treasury, such banking institution tive order issued by the President on March 10, 1933,
shall not pay out or permit the withdrawal of coin or and any further orders or regulations hereafter issued.
currency nor withdraw any trust or fiduciary funds on
REGULATION NO. 21 (MARCH 11)
deposit with any other department of the bank.
Banking
institutions
which are not members of the
REGULATION NO. 14 (MARCH 7)
Federal reserve system or organized under the laws of
States and which are not under the immediFederal reserve banks are authorized to conduct the United
supervision of any State authority may, on and
their normal and usual operations as fiscal agents of ate
after March 13, 1933, carry on their normal and usual
the United States in transactions pertaining to the ex- functions,
except as otherwise prohibited and except
change of obligations of the United States, such as that no such
shall pay out any gold coin,
making exchange of denominations, exchanging cou- gold bullion orinstitution
certificates, unless authorized by
pon for registered bonds, and vice versa, receiving the Secretary of gold
Treasury, nor allow withdrawal of
registered bonds for transfer and effecting C. P. D. any currency for the
hoarding, nor engage in any transactransactions.
tion in foreign exchange except such as may be undertaken for legitimate and normal business requirements,
REGULATION NO. 15 (MARCH 8)
for reasonable traveling and other personal requireThe permission granted in regulation No. 7 that ments, and for fulfillment of contracts entered into
deposits heretofore received by any banking institu- prior to March 6, 1933.
tion pursuant to agreement or legislative authority
NO. 22 (MARCH 11, AS AMENDED MARCH 13
providing for segregation and repayment without REGULATION
BY ADDITION OF MATTER IN ITALICS)
restriction may be paid on demand, includes any bank
in which any such deposits have been redeposited by
All Federal land banks, Federal intermediate credit
or on behalf of the receiving bank in accordance with banks,
joint stock land banks, Federal home loan
such agreement or legislative authority.
banks, corporations organized under section 25{a) of
the Federal reserve act, regional agricultural credit
REGULATION NO. 16 (MARCH 10)
corporations and the Reconstruction Finance Corporaare hereby permitted to open at 9 o'clock, a. m.,
All banking institutions are hereby authorized to tion
Monday, March 13, 1933, to perform their usual
take such steps and carry through such transactions as banking
functions except to the extent prohibited by
may be necessary to complete for their own account, or
Executive order of the President of the United
the account of their customers, payment on any sub- the
States, issued March 10, 1933, by Federal or State
scriptions for Treasury bills of the United States for law,
or as may hereafter be limited or prohibited by
which payment was due on March 6, 1933.
regulations promulgated by the Secretary of the
Treasury.
REGULATION NO. 17 (MARCH 10)
This permission, as to each of the foregoing bankAny banking institution may, when the owners ing institutions, may be revoked in whole or in part
consent thereto, pay checks issued prior to March 6, by the Secretary of the Treasury at any time, and is
1933, and received in due course of business by the granted as to each such institution upon the express
drawee banking institution, by charging the amounts condition that such institution shall deliver, within
thereof to the accounts of the drawers and crediting thirty days from the date hereof, to the Treasurer of
such amounts to the accounts of such owners on the the United States or to a Federal reserve bank or a
Federal reserve branch bank of the district in which
books of the drawee banking institution.
it is located, all gold coin, gold bullion and gold certificates owned by it, and receive payment in credit or
REGULATION NO. 18 (MARCH 11)
in other forms of coin or in currency.
All banking institutions are hereby authorized to
REGULATION NO. 23 (MARCH 12)
subscribe and pay for any United States Government
obligations which may be offered for subscription and
banking institution shall permit any withdrawal
sale by the Secretary of the Treasury. Federal reserve byNo
any person when such institution, acting in good
banks may carry on such functions as may be necessary faith,
shall deem that the withdrawal is intended for
to facilitate such transactions as are authorized by this hoarding.
Any banking institution, before permitting
regulation.
the withdrawal of large or unusual amounts of currency,
All Federal reserve banks are authorized to redeem may
require from the person requesting such withmatured obligations of the United States and to cash drawal,
a full statement under oath of the purpose for
matured coupons provided no gold or gold certificates which
the currency is requested.
shall be paid out.
REGULATION NO. 19 (MARCH 11)
REGULATION NO. 24 (MARCH 12)
Except as otherwise prohibited by law, banking
institutions may exercise their normal and usual functions in permitting substitution for or release of collateral held by them, provided other collateral or cash of
equal or greater value is received in exchange therefor.
All banking institutions may cash official drafts
drawn upon the Secretary of State for payment of salaries, traveling and other contingent expenses but not
for personal account, and remit the amounts thereof to
the banks from which the drafts are received, provided
that no gold or gold certificates shall be paid out.
REGULATION NO. 20 (MARCH 11)
REGULATION NO. 25 (MARCH 13)
All Federal reserve banks and their branches and
Pending the determination by the Treasury Departagencies may open March 13, 1933, and may remain ment of a suitable procedure for licensing the delivery
open for the performance of all usual and normal of gold for use in trade, profession or art, Federal
FEDERAL RESERVE BULLETIN
MARCH, 1933
reserve banks are hereby authorized to deliver upon
request therefor gold in amounts deemed by such bank
to be reasonably required for legitimate and customary
uses in trade, profession, or art, provided such request
is accompanied by affidavit of the person requesting
such gold, stating the amount of unmanufactured gold
on hand and the facts making it necessary to obtain
such gold for the purpose of maintaining employment.
All banks licensed to open for usual and normal
functions are permitted to carry out any transaction
necessary to complete the delivery of any gold authorized by any Federal reserve bank to be delivered in
accordance with such request.
REGULATION NO. 26 (MARCH 13)
All banking institutions may issue drafts transferring
credits from any place in the United States to any other
place in the United States and from any place in the
United States to any place in a foreign country in connection with payments for domestic and foreign patent,
trade-mark and design application fees, and in payment
for domestic and foreign patent and trade-mark taxes
and renewals. No gold or gold certificates shall be
paid out, withdrawn, or exported under this regulation.
REGULATION NO. 27 (MARCH 18; ISSUED UNDER THE
AUTHORITY OF THE EXECUTIVE ORDER OF MARCH 10
AS WELL AS UNDER THE PROCLAMATIONS REFERRED
T O O N PAGE 122)
Any State banking institution which is a member of
the Federal reserve system and which is not licensed by
the Secretary of the Treasury to reopen for the performance of usual banking functions may, with the
approval of the appropriate State authority having
immediate supervision of such banking institution,
permit withdrawals by depositors and make payments
to creditors of such percentage of the amounts due to
them (not exceeding 5 per cent) as it may determine,
provided that at or before the time of such withdrawal
or payment it shall set aside and make available for
such purpose a fund for the benefit of and sufficient to
pay to all depositors and creditors the percentage so
determined.
This regulation shall not in any way affect any right
created by Regulation No. 7 nor limit or restrict any
payment thereby authorized.
Any right to authorize withdrawals or payments
under the terms of this regulation shall terminate upon
the appointment of any conservator, receiver or other
appropriate State official taking charge of the affairs of
such banking institutions.
125
Each Federal reserve bank may (1) make available to
its member banks which, in the judgment of the Federal
reserve bank, are complying strictly with the spirit
and purpose as well as the letter of the regulations
issued by the Secretary of the Treasury pursuant to
the President's proclamation declaring a bank holiday,
such limited amounts of coin and/or currency (other
than gold or gold certificates) as shall be absolutely
necessary in order to enable such member banks to
exercise the restricted functions permitted by such
regulations, (2) extend to each such member bank such
limited amounts of discounts, advancements and accommodations as shall be absolutely necessary for the
exercise of such restricted functions, and (3) make
transfers of credit on its books for such restricted purposes between the accounts of such member banks
and/or nonmember clearing banks which, in the judgment of the Federal reserve bank, are complying strictly
with the spirit and purpose as well as the letter of such
regulations; provided, however, that before granting
any such discounts, advancements or accommodations
or making such limited payments of coin and/or currency, the Federal reserve bank shall first require the
member bank, (a) to inform the Federal reserve bank
of the amounts of coin and currency which it has on
hand, (6) to inform the Federal reserve bank of the
circumstances giving rise to the need for additional
coin and/or currency, and (c) to deliver to the Federal
reserve bank in exchange for other forms of coin and/or
currency or for credit on its books all gold and gold
certificates held by such member bank in its own right.
The following are interpretations issued by
Interpretations the Secretary of the Treasury
by the Secretary from March 7, 1933, to March
of the Treasury l g ? 1 9 3 3 j o f c e r t a i n o f t h e p r Q .
visions of the regulations set forth above:
INTERPRETATION NO. 1 (MARCH 7)
You are authorized to inform all banking institutions
and others concerned that the term "food or feed products" in regulation 6 under the President's proclamation promulgated March 6 may be interpreted to
include livestock on the way to slaughter.
INTERPRETATION NO. 2 (MARCH 7)
Regulation No. 10 of March 7 under the President's
proclamation of March 6 is held to authorize payments
REGULATION NO. 28 (MARCH 18)
on account of pensions, workmen's compensation disAfter the close of business on March 18, 1933, Treas- ability insurance, relief and unemployment.
ury regulation No. 6 and Treasury regulation No. 10,
INTERPRETATION NO. 3 (MARCH 7)
as amended, shall be without force or effect to authorize
any banking transaction therein referred to.
The term "other corporations, partnerships, associaSUPPLEMENTARY REGULATION APPLICABLE TO FEDERAL tions or persons engaged in the business of receiving
deposits, making loans," as used in the President's
RESERVE BANKS (MARCH 7)
proclamation of March 6 declaring a bank holiday, is
Under the authority conferred upon him by held to include brokers, pawn brokers, industrial loan
the President's proclamation of March 6, 1933, companies, mortgage loan companies, chattel loan
companies, personal finance companies, automobile
declaring a bank holiday, the Secretary of the finance
companies and all other persons, firms and corTreasury on March 7, 1933, also issifed the porations engaged in the business of making loans of
any kind, secured or unsecured.
following regulation:
126
FEDERAL RESERVE BULLETIN
INTERPRETATION NO. 4 (MARCH 8)
MARCH, 1933
STATEMENT BY THE SECRETARY OF THE TREASURY,
MARCH 7
Regulation No. 5, dated March 6, 1933, is not to be
interpreted as permitting any banking institutions to
"In order to facilitate the prompt disseminaaccept payment of ary obligation not solely owned by tion of information regarding and interpretait in any form which is not authorized by the person
tion of regulations issued by the Secretary of
entitled to the proceeds.
INTERPRETATION NO. 5 (MARCH 8)
Regulation No. 10 issued under the President's
proclamation is interpreted to authorize payments for
fertilizer and for vegetable and agricultural seeds for
spring planting, where such payments are absolutely
necessary and where the seed and/or fertilizer are for
immediate use.
INTERPRETATION NO. 6 (MARCH 8)
"Food or feed products'' as used in regulation 6 may
be construed as including whole grain if such grain is
intended for processing or consumption in_the immediate future.
~
INTERPRETATION NO. 7 (MARCH 8)
Release of funds for purchase of cotton where absolutely necessary to maintain operation is interpreted as
"necessary current expenditures for the purpose of
maintaining employment and for other similar essential
purposes."
INTERPRETATION NO. 8 (MARCH 8)
Regarding release of funds for purchase of internal
revenue stamps in connection with cigar manufacturing. Cigar manufacturing company should be referred
to collector of internal revenue.
INTERPRETATION NO. 9 (MARCH 14)
Regulation No. 10 issued under the President's
proclamation is interpreted to authorize payments for
nursery stock where such payments are absolutely
necessary to prevent destruction of stock in transit
on March 6, 1933, or prepared for and awaiting shipment on March 6, 1933, under bona fide commitments.
INTERPRETATION NO. 10 (MARCH 14)
The term "mortgage loan companies," as used in
interpretation No. 3, is interpreted to include all
corporations whose principal business consists of the
investment in, sale and purchase of real estate mortgages and mortgage certificates guaranteed by such
corporations.
INTERPRETATION NO. 11 (MARCH 16)
the Treasury pursuant to the President's
proclamation, dated March 6, 1933, declaring
a bank holiday, it is requested that all inquiries
for information regarding and interpretation of
any of such regulations coming from banks,
banking institutions and individuals, be made
direct to the Federal reserve bank in their
district. Unless such requests are covered by
interpretations previously issued by the Secretary of the Treasury, the Federal reserve banks
will secure such interpretations from the Secretary of the Treasury. All requests for any
special permission or consent required by the
regulations should be made in accordance with
such regulations."
STATEMENT BY THE SECRETARY
MARCH 9
OF THE TREASURY,
"The President has to-day urged the immediate enactment of legislation dealing with the
existing banking situation. It appears that
prompt action will make banking facilities and
an adequate supply of currency available.
Notwithstanding the expected early opening of
banks, the Secretary of the Treasury interposes no objection to the issuance of clearinghouse certificates or other evidences of claims
against assets of banking institutions, in communities where local conditions make such action necessary. The regulation issued by the
Secretary March 7, 1933, remains effective,
granting permission to clearing-house associations and other associations organized to provide an adequately secured medium of temporary exchange to issue certificates against
sound assets of banking institutions, such certificates to be deliverable by each institution to
its creditors and depositors on a pro rata basis."
STATEMENT BY THE SECRETARY
MARCH 9
OF THE TREASURY,
Regulation No. 12 is not to be construed as permit"The emergency banking legislation passed
ting a banking institution, open for normal and usual
functions under license of the Secretary of the Treas- by the Congress to-day is a most constructive
ury, to require depositors to accept clearing-house cer- step toward the solution of the financial and
tificates or other evidences of claims against assets for banking difficulties which have confronted the
all or any part of any withdrawal requested.
During the period March 7, 1933, to March
Statements by 18,-1933, the following statethe Secretary of ments, in addition to statee reasury
containing regulations
ments
and interpretations, were issued by the Secretary of the Treasury:
country. The extraordinary rapidity with
which this legislation was enacted by the Congress heartens and encourages the country.
"This legislation makes possible the opening
of banks upon a sound basis, backed by an
adequate supply of currency. Through this
law the banks which will open will be placed in
a position to meet all demands. This assur-
MAECH, 1933
FEDERAL RESERVE BULLETIN
ance should restore confidence and create the
foundation for a forward movement in business
activities.
" I t will be the policy of the Treasury to permit as rapidly as possible the opening of the
sound banks. There are, of course, many
thousands of such banks which will promptly be
restored to the performance of their normal
functions.
"The Treasury has already taken steps to
secure information through proper authorities
as to the condition of the various banks of the
country and immediately invites from the banks
applications for reopening.
"While much information has already been
assembled, the completion of the information
and of the arrangements of the banks for resuming their functions takes some time. It has
therefore been decided not to authorize any
reopenings before Saturday, March 11. It is
obvious that it will not be possible to act upon
all of the applications even by Saturday. Regulations governing reopenings and also other
subjects governed by the legislation will immediately be published."
STATEMENT BY THE SECRETARY OF THE TREASURY,
MARCH 10
"Executive order or regulation will issue
shortly directing all banks which are members
of the Federal reserve system, desiring to reopen
for the performance of all usual and normal
banking functions, except as otherwise prohibited, to apply for a license to the Secretary
of the Treasury, applications to be filed with
the Federal reserve bank in the appropriate
district. The appropriate authority haying
immediate supervision of banking institutions
in each State will be authorized under such
regulations as such authority may prescribe to
permit any banking institution in such State
or place, other than member banks of the Federal reserve system to perform any or all of their
usual banking functions, except as otherwise
prohibited.'7
STATEMENT BY THE SECRETARY OF THE TREASURY,
MARCH 10
u
To the superintendents of banks oj each State:
"All banks of the country are now prohibited
under the proclamation of March 9 of the
President from conducting any banking business, except as specifically authorized by rule,
regulation or license of the Secretary of the
Treasury issued under that proclamation. In
view of the passage of the emergency bank bill
by Congress yesterday, and under the terms of
that bill, and section 5 of the act of October
127
6, 1917, as amended by that bill, the Secretary
of the Treasury will be authorized to permit
any sound bank ,which is a member of the
Federal reserve system, whether State or national, to reopen for business as promptly as
possible. It is the intention of the Secretary
of the Treasury, however, to permit no member
bank to reopen at any time on a full 100 per
cent basis unless or until the Secretary is satisfied that such bank is a sound going institution.
Any member bank not clearly within this category will not be opened unless or until further
investigation discloses that it is a sound going
institution, or unless or until a reorganization
of some character will permit the bank to be
classified as a sound going institution.
"Any member bank not opened 100 per cent
under this procedure will be permitted to continue to perform only such specific transactions
as are now authorized or may hereafter be
authorized by specific regulation or license of
the Secretary of the Treasury.
"In view of the fact that neither the Treasury nor the Federal reserve authorities have
sufficient information upon which to consider
applications for reopening by such State banks
as are not members of the Federal reserve
system, the President will by decree authorize
the appropriate State authorities in each State
to give licenses to banks under their jurisdiction other than members of the Federal reserve
system, to open for the usual normal business,
or in their judgment, and under the terms of
the Presidential Proclamation, to permit of such
reopening under such restrictions and limitations as they in their judgment may deem wise.
It is to be expected, however, that State superintendents in granting licenses under this
authority will take under consideration in
determining their own policy the general principle to be adopted by the Treasury as respects
member banks that in the interests of the
depositors and of the country as a whole, only
sound institutions will be permitted to carry
on all of their usual functions to the end that
no bank shall be reopened for business on any
basis that will run the risk of being forced to
close again because of demands which it is not
in a position to satisfy."
STATEMENT BY THE SECRETARY OF THE TREASURY,
MARCH 10
" Under the terms of the act of March 9,1933,
immediate action has been taken by the President and the Secretary of the Treasury which
will make possible the resumption of banking
operations in substantial volume at a very early
date. Pending such resumption the vital needs
128
FEDERAL RESERVE BULLETIN
of communities must be met. Attention of all
banking institutions is called to Regulation 10
which is still in force and which as amended
provides for cooperation between banks in
different communities * * *." [See Regulation No. 10, p. 123.]
STATEMENT BY THE SECRETARY OF THE TREASURY,
MARCH 10
"The present restrictions on gold will not
prevent gold being available for all normal
uses in the industrial arts. Method of distribution for these purposes will be determined
by the Treasury."
STATEMENT
BY THE SECRETARY
MARCH 10
OF THE TREASURY,
system are requested to cooperate by permitting such banking institutions to open for business on Monday morning, in all cases where
they find them qualified to do so on the basis
indicated in previous telegram [statement] of
March 10. The Secretary of the Treasury will
not permit any member bank, State or national,
to open in any such Federal reserve city unless
opened for normal business on an unrestricted
basis, except so far as affected by legal contracts
between the banks and depositors with respect
to withdrawals or notice of withdrawals.
"In accordance with the announcement of
the President, the Secretary of the Treasury is
prepared upon application through the Federal
reserve banks to issue licenses to reopen on
Tuesday morning to Federal reserve member
banks located in any city having an active and
recognized clearing-house association, and upon
like application licenses to member banks
located elsewhere for reopening on Wednesday
morning. As previously stated, however, the
Secretary of the Treasury will not permit the
reopening of member banks, State or national,
on any of these days except on an unrestricted
basis, as above indicated. I t must be understood that the restrictions in the President's
proclamation against the payment of gold,
gold certificates or bullion or the payment of
currency for hoarding purposes and foreign
exchange transactions will apply to all banking
institutions, member and nonmember, State or
national, until further notice."
"The Federal Reserve Board this morning
voted t© authorize the Federal reserve banks
under the terms of section 403 of the emergency
bank act to make advances to-morrow for payroll purposes to individuals, firms, or corporations on their notes secured by Government
securities. The Secretary of the Treasury has
issued a regulation according to the terms of
the President's proclamation permitting the
Federal reserve banks to carry on this business
with the public.
"Accordingly, the Federal reserve banks
will be open to-morrow for the purpose of making
loans secured by direct obligations of the
Government, as well as to conduct such other
transactions with their member banks as may
be necessary to enable member banks to carry
out the purposes of regulation No. 10,. as STATEMENT
amended."
STATEMENT BY THE SECRETARY OF THE TREASURY,
MARCH 11
"To the superintendents of banks of each State:
"As announced by the President this afternoon, a definite program for the reopening of
banks throughout the country has been determined by the Secretary of the Treasury. In
accordance with this program, the Secretary
of the Treasury is prepared upon application
through Federal reserve banks to issue to banking institutions which are members of the
Federal reserve system, whether national or
State, located in each of the 12 Federal reserve
bank cities licenses to open Monday morning.
The Secretary of the Treasury will not issue
licenses to any member bank, State or national,
located outside those 12 cities to open before
Tuesday.
"State authorities having supervision over
banking institutions located at such cities
which are not members of the Federal reserve
MARCH, 193a
BY THE SECRETARY
MARCH 11
OF THE TREASURY,
"Normal banking is now in sight. I t will
come as rapidly as the Treasury can authorize
banks to proceed.
"The people of every community will learn
from their local institutions when the respective
Treasury permits have been granted. Therefore there will not be, for the present at least,
smy general list of the licenses issued from the
United States Treasury. To compile and
check such a list would be a rather lengthy
process, tod speed in giving the people all the
banking facilities possible and safe takes
precedence over anything else.
"The purpose of the banking and financial
program now in process under the Secretary
of the Treasury is to restore to the country as
promptly as possible adequate banking facilities and furnish an ample and sound currency,
and restore confidence. Such a program is
made possible by the new emergency banking
act passed by Congress March 9.
MARCH, 1933
FEDERAL RESERVE BULLETIN
129
"This act confirms and continues the venience and danger of keeping about them
authority of the President, through such agen- large amounts of money."
cies as he may designate, to exercise control
over banking for the protection and benefit of STATEMENT BY THE SECRETARY OF THE TREASURY,
MARCH 12
depositors and of all users of banking facilities.
By amendments to the Federal reserve act it is
"The first duty of the banks reopening under
made possible for Federal reserve banks to license of the Secretary of the Treasury for the
make loans direct to corporations, firms and performance of their usual functions is to see
individuals on their notes secured by direct that the primary needs of the people for funds
obligations of the United States Government. for the necessaries of life and for normal busiThere are approximately $11,000,000,000 of ness undertakings are met. Accordingly withsuch securities outstanding with the public drawals for hoarding have been prohibited and
other than with banking institutions. In the Secretary of the Treasury suggests that
order to enable the reopened banks to secure until more normal conditions have been estabcurrency sufficient to meet demands, Federal lished transfers of funds by banks or their
reserve banks are authorized to lend to any customers be limited to necessary purposes."
member bank, regardless of its size, on sound
assets. To provide adequate Federal reserve STATEMENT BY THE SECRETARY OF THE TREASURY,
MARCH 13
bank currency to satisfy the possible demands
under this program, Federal reserve banks are
"Banking institutions which have not yet
authorized to issue Federal reserve bank notes, been permitted to reopen for normal and usual
not only against Government securities, but functions are still permitted to continue to
also against any member bank note secured by carry on the limited activities specified by
sound assets.
regulations 1 to 19."
"With the enlarged potential supply of curOF THE TREASURY,
rency it is possible to proceed with the program STATEMENT BY THE SECRETARY
MARCH 13
of permitting banks to open. There is no occasion for such banks to experience any lack of
"Pending determination by the Treasury
currency, and there should be an end of any Department upon a suitable procedure for
fear on that score of depositors in reopened licensing the delivery of gold reasonably
banks. An Executive order forbids all banks required for legitimate and customary use in
to permit withdrawals of currency for hoarding trade, profession or art, all requests for the
purposes.
delivery of gold for such purposes should be
" I t is the intention of the Secretary of the submitted to the Federal reserve bank of the
Treasury to proceed as rapidly as possible district, accompanied by an affidavit as to the
under the President's proclamation with the amount of unmanufactured gold now on hand
licensing of the reopening of banks, both na- and the facts making it necessary to obtain the
tional and State, which are members of the additional gold requested for the purpose of
Federal reserve system. The appropriate State maintaining employment. Accurate records
authorities may permit the reopening of the must be kept of the disposition of all gold which
State institutions. An embargo is imposed may be released."
upon gold payments, except under license, to
STATEMENT BY THE SECRETARY OF THE TREASURY,
prevent gold hoarding.
MARCH 13
"This embargo does not mean that every
"Proceeding under the new bank conservaindividual who happens to have one or a number of gold certificates in his roll of currency is tion act, the Comptroller of the Currency has
to be classified as a hoarder and be subjected appointed conservators for the First National
to; invidious publicity or other penalty. The Bank of Detroit and the Guardian National
provision is aimed at those who continue to Bank of Commerce of Detroit. This course
retain quantities of gold and thereby hinder will permit the operation of the institutions for
the Government's plans for a restoration of the purpose of receiving deposits to be segregated and kept in cash or invested in obligapublic confidence.
"Already from every quarter of the Nation tions of the United States or deposited with
is reported a large and steady current of gold the Federal reserve bank, and permits the conflowing back to the banks, and the people appar- servator to set aside and make available for
ently will be prompt in depositing their funds withdrawal by depositors and payment to other
and thereby relieving themselves of the incon- creditors on a ratable basis such amounts as
130
FEDEBAL RESERVE BULLETIN
in the opinion of the Comptroller may safely
be used for this purpose.
"The placing of these banks under conservators also gives time for the development of
a satisfactory permanent plan for adequate
banking facilities for Detroit. A number of
plans have been discussed and much work has
been done, but up to date there has not been
a general agreement as to the course which will
be most advantageous for this city. The
Government of the United States is anxious
to cooperate in the carrying out of such plan
as soon as agreed upon/'
STATEMENT BY THE SECBETARY
MARCH 13
OF THE
TREASURY,
"Responding to inquiries to-day as to what
facilities are available for enabling State banks
which are not members of the Federal reserve
system to obtain currency to meet their needs,
Secretary of the Treasury Woodin called
attention to the statement of the President, in
his radio talk on March 12, that 'these banks
can and will receive assistance from member
banks and from the Reconstruction Finance
Corporation.' The Secretary also pointed out
that Federal reserve banks are authorized to
make advances to individuals, partnerships
and corporations on their promissory notes,
for periods not exceeding 90 days, secured by
direct obligations of the United States, and
nonmember banks may avail themselves of this
privilege. The Federal reserve banks also are
authorized, he stated, to rediscount for member banks, with their indorsement, eligible and
acceptable paper acquired from and bearing
the signature or indorsement of nonmember
banks; and to make advances to member
banks secured by other paper acquired from
nonmember banks.
"The Secretary said that he understands that
it is the purpose and desire of the Reconstruction Finance Corporation and the Federal
reserve banks to be as helpful as possible
in
meeting the needs of the present situation.'7
MARCH, 1933
other necessary processes that conservators in
many cases are named.
"Moreover this method makes it possible
that the bank so circumstanced will be able to
continue to render service, as for example the
receiving of deposits to be segregated and kept
in cash or invested in Government bonds and
such like securities. It also enables the conservator to set aside and make available for
withdrawal by depositors and payment to other
creditors on a ratable basis such amounts as
in his opinion it is safe to use for this purpose."
STATEMENT BY THE SECRETARY OF THE TREASURY,
MARCH 15
"Passing upon applications of member banks
to reopen for normal banking functions has
taxed the personnel of the Treasury and of the
Office of the Comptroller of the Currency.
While every possible effort has been made to
act upon all applications, delay in some cases
has been found to be inevitable. In some cases,
also, steps are being taken which as soon as
completed will make it possible for reopening
to be licensed. I therefore wish to direct
especial attention to the statement of the
President in his radio address of last Sunday:
"'Let me make it clear to you that if your bank does
not open the first day you are by no means justified
in believing that it will not open. A bank that opens on
one of the subsequent days is in exactly the same status
as the bank that opens tomorrow.'
"Additional licenses will be issued from time
to time and the public should understand that
banks hereafter licensed to be opened for normal functions are to be regarded in the same
way as if it had been possible to issue the license
by to-day."
STATEMENT BY THE SECRETARY
MARCH 16
OF THE
TREASURY,.
"A number of inquiries have been made at
the Treasury Department as to whether a prohibition exists upon proper commercial dealings in silver during the banking emergency.
"No regulations have been issued restricting export or other transactions in silver, except
STATEMENT BY THE SECRETARY OF THE TREASURY,
for limitations affecting withdrawals by deposiMARCH 14
tors for hoarding and restrictions on banks not
"In response to many inquiries as to the permitted to reopen."
significance of the appointment of conservators
On March 8, the Federal Reserve Board reto banks of high repute I wish to say that there
is no deduction to be made that such banks are quested the Federal reserve banks to "prepare
necessarily in difficulties. There are a lot of
and forward to the board a&
complications, some of them concerning affiliate
f g Id
soon as
P ° s s i b l e a f t e r March
enterprises, which make it impractical for holders ° °
13, 1933, as complete a list as
banks to open to the full extent. It is for the
purpose of insuring that the banks will be put can be made from information you are able to
in apple-pie order, pending reorganization or obtain, of the names and addresses of all per-
FEDERAL RESERVE BULLETIN
MARCH, 1933
sons who have withdrawn gold from your bank
or a member bank in your district since February 1, 1933, and who have not redeposited it
in a bank on or before March 13, 1933/' and
authorized them to give publicity to the request. The board also advised them that it
Had no objection to obtaining similar information from nonmember banks and information
regarding withdrawals prior to February 1.
On March 9, the board indicated that the request of March 8 applied " t o both gold
coin and gold certificates." Subsequently, on
March 12 and March 18, the board extended
to March 17 and March 27, respectively, the
final date as of which the lists referred to were
to be compiled.
The following orders were issued by the
Secretary of the Treasury, with the approval
~ ,
j . of the President, permitting
Orders regarding .
territories and
.
.
.
.
.
'
"
.&
banking institutions in certain
131
THE ISLAND OF GUAM (MARCH 6, 1933)
Under and by virtue of the authority conferred upon
the Secretary of the Treasury, by the proclamation of
the President of the United States of America issued
March 6, 1933, declaring a bank holiday from Monday,
March 6, to Thursday, March 9, 1933, inclusive, and
wherein the Secretary of the Treasury was authorized
and empowered, with the approval of the President,
to permit, under proper regulations, certain banking
institutions to perform any and all of the usual banking functions, and it appearing
That Capt. E. S. Root, Governor of Guam, has
advised that local conditions in the island justify the
Secretary of the Treasury in exempting the banking
institutions therein located from the operation of the
proclamation of the President of the United States,
and that such banks are in a position and desire to
continue to transact their banking business as usual,
it is, therefore,
Ordered, That any and all banking institutions, as
defined in the proclamation of the President of the
United States, operating and carrying on business in
the island of Guam, be, and the same hereby are,
authorized and permitted to perform all their usual
banking functions during the period as ordered in the
proclamation of the President of the United States and
any and all extensions thereof, and/or until the further
order of the undersigned in the premises, provided,
however, that no banking institution shall pay out or
permit the withdrawal of any gold or gold certificates*
territories and insular posses- THE ISLANDS OF AMERICAN SAMOA (MARCH 6, 1933)
and by virtue of the authority conferred upon
sions of the United States to theUnder
Secretary of the Treasury, by the proclamation of
perform all usual banking functions:
the President of the United States of America issued
insular posses-
March 6, 1933, declaring a bank holiday from Monday,
March 6, to Thursday, March 9, 1933, inclusive, and
Under and by virtue of the authority conferred upon wherein the Secretary of the Treasury was authorized
the Secretary of the Treasury, by the proclamation of and empowered, with the approval of the President, to
the President of the United States of America issued permit, under proper regulations, certain banking
March 6, 1933, declaring a banking holiday from Mon- institutions to perform any and all of the usual bankday, March 6, to Thursday, March 9, 1933, inclusive, ing functions, and it appearing
That Capt. George B. Landenberger, Governor of
and wherein the Secretary of the Treasury was authorized and empowered with the approval of the President American Samoa, has advised that local conditions in
to permit, under proper regulations, certain banking the islands justify the Secretary of the Treasury in
institutions to perform any and all of the usual banking exempting the banking institutions therein located
from the operation of the proclamation of the President
functions, and it appearing
That Lieut. Col. Julian L. Schley, Governor of the of the United States, and that such banks are in a posiPanama Canal, Balboa Heights, Canal Zone, has ad- tion and desire to continue to transact their banking
vised, after consultation with the manager of the single business as usual, it is, therefore,
Ordered, That any and all banking institutions, as
bank operating in the Canal Zone (which is a branch
of the Chase National Bank of New York, located in defined in the proclamation of the President of the
Cristobal), that there is no necessity for the application United States, operating and carrying on business in the
of the terms of the Proclamation to such bank operating islands of American Samoa, be, and the same hereby
in the Canal Zone, and that such bank is in a position are, authorized and permitted to perform all their
and desires to continue to transact its banking business usual banking functions during the period as ordered in
the proclamation of the President of the United States
as usual, it is, therefore,
Ordered, That the banking institution, as defined in and any and all extensions thereof, and/or until the
the proclamation of the President of the United States, further order of the undersigned in the premises, prooperating and carrying on business in the Canal Zone, vided, however, that no banking institution shall pay
be, and the same hereby is, authorized and permitted out or permit the withdrawal of any gold or gold certo perform all its usual banking functions during the tificates.
period as ordered in the proclamation of the President
THE PHILIPPINE ISLANDS (MARCH 6, 1933)
of the United States and any and all extensions thereof,
and/or until the further order of the undersigned in the
Under and by virtue of the authority conferred upon
premises, provided, however, that no banking institu- the Secretary of the Treasury, by the proclamation of
tion shall pay out or permit the withdrawal of any gold the President of the United States of America issued
or gold certificates.
March 6, 1933, declaring a bank holiday from Mondayr
THE CANAL ZONE (MARCH 6, 1933)
132
FEDERAL RESERVE BULLETIN
MARCH, 1933
March 6, to Thursday, March 9, 1933, inclusive,
That the Hon. Lawrence M. Judd, Governor of the
and wherein the Secretary of the Treasury was au- Territory of Hawaii, advised that there is no necessity
thorized and empowered with the approval of the for the application of the terms of the proclamation
President to permit, under proper regulations, certain to the banks operating in the Territory of Hawaii after
banking institutions to perform any and all of the the close of business March 9, 1933, and that such
usual banking functions, and it appearing
banks are in a position and desire to transact their
That the Hon. Theodore Roosevelt, jr., Governor banking business as usual, it is, therefore,
General of the Philippine Islands, has advised, after
Ordered, That any and all banking institutions, as
consultation with the managing officials of all banks, defined in the proclamation of the President of the
both local and foreign, located in the Philippine United States, operating and carrying on business in
Islands, together with certain prominent business men the Territory of Hawaii, be and the same hereby are,
of the community and certain insular officials, that there authorized and permitted to perform all usual banking
is no present necessity for the application of the terms functions during the period as ordered in the proclamaof the proclamation to the banks operating in the Philip- tion of the President of the United States and any and
pine Islands, and that such banks are in a position all extensions thereof, and/or until the further order
and desire to continue to transact their banking business of the undersigned in the premises, provided, however,
as usual, it is, therefore,
that no banking institution shall pay out or permit the
Ordered, That any and all banking institutions, as withdrawal of any gold or gold certificates.
defined in the proclamation of the President of the
United States, operating and carrying on business in the
Changes in Discount and Bill Rates
Philippine Islands, be, and the same hereby are,
authorized and permitted to perform all their usual
The discount rate for member banks on all
banking functions during the period as ordered in the
proclamation of the President of the United States and classes and maturities of eligible paper was
any and all extensions thereof, and/or until the further increased from 2% to 3% per cent at the Federal
order of the undersigned in the premises, provided,
however, that no banking institution shall pay out or Reserve Bank of New York, effective March 3,
permit the withdrawal of any gold or gold certificates. and at the Federal Reserve Bank of Chicago,
THE VIRGIN ISLANDS (MARCH 6, 1933)
effective March 4.
At the Federal Reserve Bank of New York
buying rates on bills of all maturities were
changed between February 1 and March 13,
as shown in the following table:
Under and by virtue of the authority conferred upon
the Secretary of the Treasury, by the proclamation of
the President of the United States of America issued
March 6, 1933, declaring a bank holiday from Monday,
March 6, to Thursday, March 9, 1933, inclusive, and
wherein the Secretary of the Treasury was authorized
and empowered with the approval of the President to
76 to 90 91 to 120 121 to 180
Ito75
permit, under proper regulations, certain banking
days
days
days
days
institutions to perform any and all of the usual banking
functions, and it appearing
1
1
1 —
1H
IK
That the Hon. Boyd J. Brown, Acting Governor of In effect Feb.
Feb 16
the Virgin Islands, has advised that there is no neces- Effective
1
Effective Feb 27
2
Mar. 1 .
1H
sity for the application of the terms of the proclama- Effective
2
2
Mar. 2
tion to the banks operating in the Virgin Islands, and Effective
Effective Mar. 3_
ZjA
3H
ZU
that such banks are in a position and desire to transact Effective Mar. 13 Z%
ZH
4
their banking business as usual, it is, therefore,
Ordered, That any and all banking institutions, as
defined in the proclamation of the President of the Changes in Foreign Central Bank Discount Rates
United States, operating and carrying on business in the
The following changes in discount rates durVirgin Islands, be, and the same hereby are, authorized
and permitted to perform all usual banking functions ing the month ended March 1, 1933, have been
during the period as ordered in the proclamation of the reported by central banks in foreign countries:
President of the United States and any and all extensions thereof, and/or until the further order of the
Imperial Bank of India—February 16, from 4 to 3%
undersigned in the premises, provided, however, that per cent.
no banking institution shall pay out or permit the
South African Reserve Bank—February 20, from 5
withdrawal of any gold or gold certificates.
to 4 per cent.
THE TERRITORY OF HAWAII (MARCH 9, 1933)
JjiZ
Under and by virtue of the authority conferred upon
the Secretary of the Treasury, by the proclamation
of the President of the United States of America
issued March 6, 1933, declaring a bank holiday from
Monday, March 6, to Thursday, March 9, 1933,
inclusive, as extended by a proclamation of the President issued March 9, 1933, and wherein the Secretary
of the Treasury was authorized and empowered with
the approval of the President to permit, under proper
regulations, certain banking institutions to perform
any and all of the usual banking functions, and it
appearing
Change in Chairmanship of Federal Reserve Board
On March 4, 1933, the President nominated
Hon. William H. Woodin as Secretary of the
Treasury, to succeed Hon. Ogden L. Mills, and
the nomination was confirmed by the Senate.
The Secretary of the Treasury is ex officio
member and chairman of the Federal Reserve
Board.
MARCH, 1933
FEDERAL RESERVE BULLETIN
133
Change of Agent at Cleveland Bank
Meeting of Federal Advisory Council
Mr. George DeCamp, who had served as
Federal reserve agent and chairman of the
board of directors of the Federal Reserve
Bank of Cleveland since December 19, 1925,
resigned, effective March 14,1933. The Federal
Reserve Board designated Mr. Lewis B.
Williams, of Cleveland, as chairman of the
board of directors and Federal reserve agent,
to succeed Mr. DeCamp, effective March 15,
1933. Mr. Williams has served as class C
director and deputy chairman of the board of
directors' of the Federal Reserve Bank of
Cleveland since January 1, 1920.
The Federal Reserve Board also appointed
Mr. E. S. Burke, jr., of Cleveland, as a class C
director of the Federal Reserve Bank of Cleveland for the unexpired portion of the term
ending December 31,1935, vice Mr. DeCamp,
and as deputy chairman of the board of directors of the bank for the remainder of this
year.
The first meeting of the Federal Advisory
Council for 1933 was held on Tuesday, February 21. Mr. Walter W. Smith was reelected
president and Mr. Melvin A. Traylor was reelected vice president. These officers as exofficio members and Messrs. Davison, Loeb,
Ottley, and McLucas will comprise the executive committee. Mr. Walter Lichtenstein was
reappointed secretary. The council is composed of the following members:
Federal reserve district
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
1. Thomas M. Steele, of New Haven, Conn.
2. Geo. W. Davison, of New York City, N. Y.
3. Howard A. Loeb, of Philadelphia, Pa.
4. H. C. McEldowney, of Pittsburgh, Pa.
5. Howard Bruce, of Baltimore, Md.
6. John K. Ottley, of Atlanta, Ga.
7. Melvin A. Traylor, of Chicago, 111.
8. Walter W. Smith, of St. Louis, Mo.
9. Theodore Wold, of Minneapolis, Minn.
10. Walter S. McLucas, of Kansas City, Mo.
11. Joseph H. Frost, of San Antonio, Tex.
12. Henry M. Robinson, of Los Angeles, Calif.
134
FEDERAL RESERVE BULLETIN
M A E C H , 1933
NATIONAL SUMMARY OF BUSINESS CONDITIONS
[Compiled February 25 and released for publication February 27]
Volume of industrial production increased in
January by less than the usual seasonal amount,
and factory employment and pay rolls continued to decline. Prices of commodities at
wholesale, which declined further in January,
showed relatively little change in the first three
weeks of February.
Production and employment. — Industrial
activity, as measured by the Federal Reserve
Board's index, which makes allowance for
usual seasonal changes, declined from 66 per
cent of the 1923-1925 average in December to
64 per cent in January, which compares with
a low level of 58 per cent last July. Output
of coal declined considerably, contrary to the
usual seasonal tendency. Increases in activity
in the cotton and silk industries were somewhat
less than seasonal in amount, and there was a
slight decline in production at woolen mills.
Output of shoes increased seasonally. Activity
in the steel industry showed a seasonal increase
during January and little change during the
first three weeks of February. Automobile
production, which had increased substantially
in December, showed a further slight increase
in January.
Factory employment declined between the
middle of December and the middle of January
by considerably more than the seasonal amount.
Decreases were reported in most lines except
in the cotton, wool, and silk industries, where
employment showed little change, and in the
automobile and shoe industries, where employment increased.
Construction contracts awarded were in
&bout the same volume in January as in
December, according to the F. W. Dodge
Corporation; in the first half of February the
value of awards showed a decline.
Distribution.—Volume of freight traffic was
somewhat smaller in January than in December, reflecting a reduction in shipments of
<ioal. Sales by department stores decreased
after Christmas by more than the usual
seasonal amount.
Wholesale prices.—The general level of
wholesale commodity prices, as measured by
the index of the Bureau of Labor Statistics,
declined further, from 62.6 per cent of the 1926
average in December to 61 per cent in January,
reflecting substantial reductions in the prices
of crude petroleum, gasoline, textiles, and dairy
and poultry products. Prevailing prices for
wheat, cotton, and hogs in January and the
first three weeks of February were somewhat
above the low levels reached in December.
Bank credit.—Between January 4 and February 21 there was an increase of $319,000,000
in the demand for currency, accompanying
banking disturbances in different parts of the
country, and a decrease of $64,000,000 in the
country's stock of monetary gold. These
demands were met by member banks in part
by the use of their balances at the reserve
banks, which declined by $243,000,000 during
the period, but continued to be considerably
above legal requirements. Federal reserve
bank holdings of United States Government
securities declined by $88,000,000 between
January 4 and February 1, but increased by
$70,000,000 during the following three weeks;
their holdings of acceptances increased by
$141,000,000 and discounts for member banks
increased by $76,000,000.
Loans and investments of reporting member
banks in leading cities declined by about
$100,000,000 during the five weeks ending
February 15. The banks' net demand deposits
declined by $390,000,000, reflecting largely
reductions in bankers' balances, and time
deposits showed a decrease of $93,000,000 for
the period.
Money rates in the open market were
slightly firmer during the first half of February.
Open-market rates on 90-day bankers' acceptances, which had been one-fourth of 1
per cent, had increased to five-eighths of 1
per cent by February 20. Rates on prime
commercial paper and on stock-exchange loans
remained unchanged. The minimum buying
rate on bills at the Federal Reserve Banks of
Boston, New York, and Chicago was reduced
from 1 to one-half of 1 per cent.
135
FEDERAL RESERVE BULLETIN
MARCH, 1033
RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES
MILLIONS OF DOLLARS
.
MILLIONS OF DOLLARS
6000
6000
5500
5500
5000
5000
•4500
4500
4000
4000
Member Bank
Reserve Balances
2500
2500
2000
2000
1500
1500
1000
1000
500
500
1926
1929
1930
1931
1932
, ,•I,, •,•1 0
1933
Based on weekly averages of daily figures; latest figures are for week ending February 25
136
FEDERAL RESERVE BULLETIN
M A R C H , 193$
FEDERAL RESERVE BANK CREDIT
RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES
[In millions of dollars]
Averages of daily figures
Reserve bank credit outstanding
Factors of decrease
Factors of increase
Month or week
Bills discounted
1931—December
1932—January
February
March
April
May
June
July._
August
September
October
November
December
,
1933—January
February..
Week ending (Saturday)—
1932—Oct. 1
Oct. 8
Oct. 15
Oct. 22
Oct. 29
Bills
bought
United
States
Government securities
Other
reserve
bank
credit
Total
NonMone- Treasury Money Member
bank
member
tary gold currency in circu- reserve
deposits,
adjusted
lation
stock
balances
etc.
Unexpended
capital
funds
775
340
777
1,951
4,450
1,782
5,611
2,069
144
848
714
605
486
495
523
451
387
328
313
282
221
151
105
52
41
50
60
37
34
34
34
34
759
743
809
1,014
1,413
1,697
1,818
1,850
1,848
1,851
1,851
1,854
1,865
1,785
1,652
1,694
1,960
2,262
2,422
2,353
2,282
2,231
2,211
2,192
4,452
4,384
4,372
4,381
4,273
3,956
3,941
4,031
4,140
4,226
4,292
4,429
1,773
1,787
1,792
1,789
1, 788
1,787
1,780
1,796
1,826
1,886
1,917
1,915
5,645
5,627
5,531
5,452
5,456
5,530
5,751
5,720
5,685
5,643
5,642
1,979
1,907
1,899
1,996
2,138
2,062
2,003
2,073
2,181
2,307
2,378
2,435
113
73
37
63
77
65
46
40
35
38
40
43
349
349
353
350
348
343
347
347
355
360
359
255
307
102
1,806
1,804
2,110
2,224
4,547
4,491
1,901
1,891
5,631
5,892
2,516
2,291
60
79
351
344
343
336
331
318
321
33
33
33
34
34
1,853
1,852
1,851
1,851
1,851
2,244
2,241
2,232
2,229
2,222
4,184
4,200
4,211
4,230
4,256
1,836
1,869
1,874
1,895
1,905
5,635
5,666
5,662
5,641
5,608
2,241
2,256
2,260
2,314
2,385
351
350
353
358
357
Nov.
Nov.
Nov.
Nov.
5
12
19
26
327
314
310
309
34
34
34
35
1,851
1,851
1,851
1,851
2,229
2,211
2,210
2,205
4,265
4,272
4,284
4,314
1,900
1,917
1,926
1,922
5,632
5,657
5,642
5,635
2,344
2,385
2,402
357
359
359
359
Dec.
Dec.
Dec.
Dec.
Dec.
3
10
17
24
31
311
35
34
34
33
33
1,851
1,851
1,859
1,854
1,852
2,208
2,202
2,195
2,189
2,171
4,336
4,352
4,411
4,487
4,503
1,915
1,916
1,937
1,906
1,902
5,654
5,682
5,683
5,734
5,704
2,399
2,388
2,457
2,444
2,471
357
357
360
362
360
1933—Jan. 7
Jan.14
Jan. 21
Jan. 28
245
249
251
267
33
32
32
31
1,853
1,829
1,793
1,770
2,153
2,127
2,091
2,080
4,526
4,548
4,558
4,551
1,902
1,905
1,908
1,897
5,669
5,616
5,616
5 620
2,513
2,563
2,526
2 487
352
353
351
350
256
283
335
31
31
45
181
1,763
1,775
1,809
1,833
2,074
2,078
2,155
2,357
4,549
4,530
4,505
4,450
1,886
1,892
1,871
1,892
5,664
5,717
5,850
6,032
2,426
2,369
2,256
2,235
350
346
343
342
Feb.
Feb.
Feb.
Feb.
4
11
18
25
271
-
End of month series
1932
Wednesday series
1933
Sept. Oct. Nov. Dec. Jan.
30
31
30
31
31
Bills discounted.-Bills bought
United States Government securities..
Other reserve bank credit—
Total reserve bank credit
Monetary gold stock
Treasury currency adjusted
332
328
34
35
1,851 1,851
14
2,233 2,227
4,193 4,264
1,840 1,909
235
33
274
31
1933
582
1,855 1,763
10
2,202 2,145 2,077 2,794
4,340 4,513 4,553 H, 379
1,925 1,923 1,872
Money in circulation
5,653 5,628 5,648 5,675 5,645 *6,546
Member bank reserve balances. 2,225 2,383 2,411
2,446 2,141
36
Nonmember deposits, etc
31
50
64
80
352
Unexpended capital funds
357 354 346
358
* Preliminary.
Back figures.—See Annual Report for 1931 (Tables 1-5).
Jan.
25
Feb.
28
Feb. Feb. Feb. Feb. Mar.
21
15
Bills discounted
Bills bought
United States Government securities
Other reserve bank credit.
253
31
286
31
327
174
712
384
1,763 1,764 1,784
17
7
10
1,834
16
1,836
4
Total reserve bank credit
Monetary gold stock
Treasury currency adjusted
2,067 2,070
4,556 4,548
1,912 1,885
265
31
269
31
2,085 2,136 2,351 2,936
4,635 4,511 4,460 4,344
1,918 1,873 1,878 1,915
Money in circulation
5,611 5,652 5,705 5,854 5,988 6,720
Member bank reserve balances.. 2,513 2,438 2,419 2,236 2,271 2,038
Unexpended capital funds, nonmember bank deposits, etc
411
413
430
413
431 436
137
FEDERAL RESERVE BULLETIN
MARCH, 1933
RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS IN DETAIL; ALSO FEDERAL
RESERVE NOTE STATEMENT
[In thousands of dollars]
Feb. 28, 1933 Jan. 31, 1933 Feb. 29,1932
Gold with Federal reserve agents..
Gold redemption fund with United States Treasury
Gold held exclusively against Federal reserve notesGold settlement fund with Federal Reserve Board
Gold and gold certificates held by banks
Total gold reserves
Reserves other than gold
__.
Total reserves
Nonreserve cash
Bills discounted:
For member banks
For intermediate credit banks..
For nonmember banks, etc
2,225,068
74,233
2,406,947
37,148
2,068,907
55,743
2,299,301
379,251
273,198
2,444,095
429,819
382,077
2,124,650
263,663
549,796
2,951,750
174, 636
3, 255,991
201,426
2,938,109
201,645
3,126,386
67,872
3,457,417
78,961
3,139, 754
71,548
581,605
35
794
273,582
864
817,489
10,573
415
Total bills discounted.
Bills bought:
Payable in dollarsBought outright
Under resale agreement-..
Payable in foreign currencies.
582,434
274,446
828,477
294, 592
12,429
28,997
2,303
~29,~636
68,819
6,852
33,478
Total bills bought..
United States securities:
Bought outright
Under resale agreement.
336,018
31,339
109,149
Total United States securitiesOther reserve bank credit;
Federal intermediate credit bank debentures
Federal land bank bonds
Municipal warrants
Due from foreign banks
_
Reserve bankfloat(uncollected items in excess of deferred availability items)..
Total reserve bank credit outstanding
_
Federal reserve notes of other reserve banks
Uncollected items not included in float
Bank premises.
All other resources
Total resourcesFederal reserve notes:
Held by other Federal reserve banks.
Outside Federal reserve banks
1,836, 377
30,000
1,763, 292
740,032
1,866,377
1, 763,292
740,032
10, 000
4,552
3, 515
1,598
3,421
3,505
834
4,603
8,607
8,019
2, 794, 494
2,076,837
1,708,887
10,889
357,056
53,962
53, 709
303,499
53,880
49,351
15, 916
340,627
57,821
39,577
6,464,368
6,032,844
5,374,130
10,889
3,406,430
12,899
2,712, 522
15,916
2,635,253
3,417,319
2, 725,421
2,651,169
2,140,924
14,919
40,125
40,213
2,445,662
44,381
40,003
23, 791
1,848,887
35,825
16,583
36,023
2, 236,181
357,056
150,309
278,599
24,904
2,553,837
303,499
151,086
278,599
20,402
1,937,318
340,627
157,492
259,421
28,103
6,464,368
29,984
6,032,844
40,914
5,374,130
311,870
3,678,832
261,513
2,937,270
211,849
2,911,743
260,574
3,417,319
2,725,421
2,651,169
2,225,068
855,908
611,600
2,406,947
256,497
313,300
2,068,907
892,153
3,692,576
2,976,744
2,961,060
LIABILITIES
Total notes in circulationDeposits:
Member bank—reserve account.
Government
Foreign bank
Other deposits
Total deposits
Deferred availability items..
Capital paid in
Surplus
All other liabilities
Total liabilities
Contingent liability on bills purchased for foreign correspondents
•„
FEDERAL RESERVE NOTE STATEMENT
Federal reserve notes:
Issued to Federal reserve banks by Federal reserve agents
Held by Federal reserve banks1
In actual circulation.
Collateral held by agents as security for notes issued to banks:
Gold
Eligible paper
United States Government securities
Total collateral..
1
Excludes "Federal reserve notes of other Federal reserve banks" which are consequently included in actual circulation.
Back figures— See Annual Report for 1931 (Table 11), 1930 (Table 10), etc.
138
FEDERAL RESERVE BULLETIN
MARCH, 193a
ANALYSIS OF CHANGES IN MONETARY GOLD GOLD MOVEMENTS TO AND FROM UNITED
STOCK
STATES
[In millions of dollars]
Month
1999—September
October
November.-December
Total (12 mos.)..
1930—January
February ...
March
April
May
July
August ..
-September
October
November December
Total (12 mos.)1931—January...
February . . . . March .
April
May
June
July
August —
September
October
November.-- . .
December
Total (12 mos.)..
1932—January
February.
March
April
May
June
July
August
September
October
November
December
[In thousands of dollars]
Analysis of changes
Gold
stock
at end Increase
Net reof
in stock Net gold lease
month during import from earmonth
mark 1
4,372
4,386
4,367
4,284
4,291
4,353
4,423
4,491
4,517
4,535
4,517
4,501
4,511
4,535
4,571
4,593
4,643
4,665
4,697
4,726
4,798
4,956
4,949
4,995
4,741
4,292
4,414
4,460
4,416
4,354
4,390
4,367
4,152
3,919
3,977
4,088
4,193
4,264
4,340
4,513
Domestic production,
etc.*
12.1
14.4
—19.2
-82.9
17.6
17.5
—23.2
-64.4
-6.6
-4.5
1.0
-22.0
142.5
175.1
-55.4
6.8
61.9
70.2
68.5
25.9
17.6
-18.4
-15.5
10.2
23.3
36.8
22.1
4.0
60.0
55.5
65.7
23.5
13.9
-19.6
-19.6
2.5
26.4
35.2
32.7
0.5
0.0
15.0
0.5
2.0
2.0
-3.0
4.0
-6.1
-2.1
-15.2
309.6
280.1
-2.4
49.4
22.0
32.0
28.7
72.4
158.0
-6.6
45.7
-254.3
—448.4
122.0
45.8
34.4
16.1
25.6
49.5
49.6
63.8
19.5
57.5
20.6
-337. 7
89.4
56.9
11.9
2.5
3.0
—7.5
92.3
-29.7
-16.0
-279.1
-107.6
28.3
-22.9
-133.4
145.3
-320.8
42.1
-44.2
-73.0
—90.6
-62.3
-24.7
36.0
-30.2
-23.1
—214.1 -195. 5
—233.9 -206.0
-3.4
58.0
6.1
111.7
27.9
104.8
20.6
70.8
21.7
75.6 |
173.5
100.9
25.4
26.4
58.3
-22.1
-28.8
56.2
100.5
72.3
45.8
48.6
• 71.0
3.4
1.9
2.4
3.2
3.6
0.9
5.2
5.1
4.6
4.5
-446. 2
457.5
41.6
128.5 3 - 9 1 . 5
14.4 -189. 5
3.0
1.4
52.9
Total (12mos.)..
1933
0.0
4.0
4.0
From or to—
1.1
1.4
30
Belgium
England- -. .
22.8 France
Germany
273 Netherlands
Portugal
1.9
- 0 . 3 Switzerland
2.3 Canada
0.5 Central America
1.7 Mexico
4.3 Argentina
4.2 Colombia
3.7 Ecuador
3.1 Peru
3 8 Uruguay
4.5 Venezuela
Australia - India
31.9 British
China and Hong
3.5
3.1
3.3
3.3
—13.3
18.8
1.9
3.6
4.2
4.2
—3.1
4.2
11.9
PTnng
February
(preliminary)
1932
Imports
Exports
Imports
Exports
4,024
1,070
3,554
6
4,378
6,121
50,254
29,490
1,067
15,123
5,282
129
634
8
3,992
1,564
52
113
140
64
608
8,237
139
682
15,193
3,610
5,612
120
Dutch East Indies
3,729
Japan
533
Philippine Islands
262
17
All other countriesl. 1,735
Total. _. .. 2 26,724 212,326 128,479
1
JanuaryDecember
January
Imports
Exports
1,031
68,718
16,649
382
18,690
83,602"
15,132
458,298
13,738
115,277
2,386
118,560*
184
3
320*
9
287
64,757
1,392
20,407
13,000
3,242
1,053
3,242
4,384
1,770
7,510
26,596
l,660»
126
39,044
2,901
49,720
7,052
11,489
233
14 363,315
809,52S
Includes all movements of unreported origin or destination.
2 At New York—imports, $18,514,000, exports, $12,326,000. Elsewhere,
mports, $8,210,000.
KINDS OF MONEY IN CIRCULATION
[Money outside Treasury and Federal reserve banks. In millions of
dollars]
1932
1933
Kind of money
5.3
1.6
Gold coin
F e b . 28 v
Jan. 31
571
479
F e b . 29
406
820*
591
650
Gold certificates
2,634
2,707
3,405
Federal reserve notes
Treasury currency:
31
28
28
Standard silver dollars .
4.4
142.9 -281.0
-133.7
Total (2 mos.)
363
362
350
Silver certificates .
1
1
1
Treasury notes of 1890
260
250
252
Subsidiary silver
i Gold released from earmark at Federal reserve banks less gold placed
114
111
111
Minor
coin
under earmark.
280
287
301
United States notes
a Thisfigure,derived from preceding columns, represents the excess of
3
3
3
Fpdpral reserve bank notes
domestic production over nonmonetary consumption of gold—chiefly
691
836
861
National bank notes
._consumption in the arts. In any given month, however, it may be predominantly affected by the fact that on the final day of the month (a)
1,743
1,866
1,919
TotaLTreasury currency
gold bullion or foreign gold coin recently imported may not yet have
reached a reserve bank or the Treasury, and (6) gold bullion recently
5,604
6,546
5,645
Total money in circulation. _
withdrawn from stock for export may not yet have been actually exported. The figures are subject to certain unavoidable inaccuracies
m official reports of gold imports and exports.
v Preliminary.
• Allowance has been made for gold earmarked at the Bank of England
for account of the Federal Reserve Bank of New York.
Backfigures.—SeeAnnual Reports for 1931 (Table 35), 1930 (Table 32),.
and
1927 (Table 22).
v Preliminary figures.
Backfigures.—SeeAnnual Report for 1931 (Table 30).
1933—January
February p
4,553
4,379
40.0
-173.7
MARCH,
139
FEDERAL RESERVE BULLETIN
1933
MEMBER BANE RESERVE BALANCES
[In millions of dollars]
Averages of daily figures
Reserves held
Month or week
1931—October
November
Total—all
member
banks
New York
Cityi
2,256
2,118
2,069
848
774
766
872
832
807
1,979
1,907
1,899
1,996
2,138
2,062
2,003
2,073
2,181
2,307
2,378
2,435
724
681
687
780
874
783
767
832
927
1,001
1,050
1,083
2,516
- -
April
May
July
.
November
Excess reserves
______
1933—January
"Country" Total—all
member
banks
banks
New York
Cityi
536
512
503
129.1
57.0
59.5
52.5
10.7
18.5
39.7
19 4
16.9
37.0
26.9
30.9
767
753
747
749
800
819
781
797
812
863
887
911
488
473
465
466
464
459
455
444
443
444
441
440
35.4
43.8
59.0
152.1
277.1
234.4
204.4
269.9
345.5
435.9
482,2
525.8
4.5
17.8
88.1
155.1
89.4
75.0
127.7
193.4
241.6
266.8
283.2
1.8
11.3
17 3
35.7
91.5
111.4
91 6
108.9
119 6
160.5
181.8
206.9
29.2
25.3
23 8
28.3
30.5
33.6
37 9
33.3
32 4
33.7
33.7
35.7
1,109
965
442
583.8
286.2
254.2
43.4
2,404
2,384
2,443
2,457
2,459
1,072
1,031
1,091
1,104
1,111
899
909
914
911
911
433
443
438
442
437
271.8
236.9
293.9
301.6
309.3
198.4
211.1
208.7
203.9
203.5
2,508
2,559
2,536
2,491
1,121
1,171
1,141
1,057
934
946
950
997
453
442
445
436
308.7
350.1
311.8
232.9
219.1
236 4
238.1
288.4
Other
reserve
cities
Other
reserve
cities
7.2
" Country"
banks
Week ending (Friday)—
Dec
Dec
Dec
Dec.
Dec
2
9
16
23
30
1933_jan
jan
Jan.
jan
-—
0
13
20
27
-
---
-
* Central reserve city banks only.
Back figures.—See Annual Report for 1931 (Tables 49 and 56).
(2)
2
( )
(2)
(2)
(2)
(2)
(2)
* Figures not available by weeks.
MEMBER BANK DEPOSITS
[In millions of dollars]
Averages of daily figures
Net demand and time deposits
Net demand deposits
Time deposits
Month
Totalall member
banks
New
York
Cityi
Other
reserve
cities
Total"Coun- all
memtry"
ber
banks
banks
New
York
Cityi
Other
reserve
cities
Total'Coun- all
memtry"
ber
banks
banks
New
York
Cityi
Other
reserve
cities
"Country"
banks
1931—OctoberNovember.
December.
29,138
28,218
27,438
6,937
6,612
6,414
11,657
11,350
11,048
10,544
10,256
9,976
16,359
16,358
15,985
5,872
5,653
5,546
6,421
6,273
6,106
4,567
4,432
4,333
12,279
11,860
11,453
1,065
959
5,236
5,076
4,942
5,977
5,825
5,643
1932—January ___
February..
March
April
May
June
July
August
September
October. ~
November.
December.
26,592
25, 715
25,431
25,386
25,466
25,075
24, 712
24,744
24,973
25,292
25,476
25,492
6,165
5,797
5,760
5,950
6,159
5,957
5,951
6,084
6,308
6,559
6,762
6,877
10,706
10,413
10,291
10,109
10,081
10,032
9,830
9,833
9,853
9,939
9,964
9,941
9,720
9,505
9,380
9,327
9,226
9,087
8,931
8,827
8,811
8,795
8,751
8,674
15,447
14, 789
14, 575
14,589
14,679
14,413
14,157
14,141
14,408
14, 679
14,864
14, 965
5,343
5,001
4,959
5,138
5,342
5,154
5,133
5,217
5,440
5,629
5,804
5,937
5,921
5,723
5,622
5,492
5,425
5,433
5,304
5,283
5,316
5,402
5,432
5,424
4,183
4,064
3,993
3,959
3,911
3,826
3,720
3,641
3,652
3,649
3,628
3,604
11,145
10,926
10,856
10,797
10,787
10,663
10, 555
10, 603
10, 565
10, 612
10,612
10,527
822
796
800
811
816
803
818
867
869
929
957
940
4,786
4,690
4,668
4,618
4,656
4,599
4,526
4,550
4,538
4,537
4,532
4,517
5,537
5,440
5,387
5,368
5,315
5,261
5,211
5,186
5,159
5,145
5,123
5,071
1933—January,..
25, 641
7,050
10, 023
8,568
15,116
6,109
5, 470
3,537
10, 525
941
4,553
5,031
' i Central reserve city banks only.
Back figures.—See Annual Report for 1931 (Table 49).
140
FEDERAL RESERVE BULLETIN
MARCH, 1933
ALL MEMBER BANKS—CLASSIFICATION OF LOANS AND INVESTMENTS
[In millions of dollars]
Open-market loans
Loans to other customers
Gall date
Total
loans Loans
to
and
invest- banks Total
ments
Investments
Purchased paper
SeSecured cured
by
by
stocks real
and estate
bonds
Othercured
and
unsecured
Loans
to
Accept- Acbrocept- Com- kers
Total
in
ances merpaycial
New
in
able paper York*
United abroad
States
Total
Total
loans
seU.S.
cured
Gov- Other
by
ern- secu- stocks
ment rities
and
secubonds1
rities
TOTAL—ALL MEMBER
BANES
1929—June 29
Odt.4
Dec. 31
1930—Mar. 27
June 30
Sept. 24
Dec. 31
1931—Mar. 25
June 30
Sept. 29Dec. 31
1932—June 30
Sept. 30
Dec. 31
35,711
35,914
35,934
35,056
35,656
35,472
34,860
34,729
33,923
33,073
30,575
28,001
28,045
27,469
670
640
714
527
535
466
631
446
457
599
790
573
457
444
22,517
23,249
23,193
21,494
21,565
21,010
21,007
19,940
19,257
18,713
17,570
15,267
14,497
13,905
7,734
8,109
8,488
7,730
8,061
7,864
7,942
7,423
7,117
6,842
6,290
5,292
5,086
4,848
3,164
3,152
3,191
3,170
3,155
3,163
3,234
3,220
3,216
3,149
3,038
2,894
2,885
2,862
11,618
11,988
11,515
10,595
10,349
9,982
9,831
9,298
8,922
8,722
8,244
7,081
6,527
6,195
2,472
2,276
2,243
3,097
3,113
3,262
2,233
2,454
2,103
1,563
901
747
970
855
146
313
407
375
8,160
8,150
8,774
8,238
8,798
8,557
8,582
8,473
8,287
8,253
7,460
6,715
7,112
7,327
314
302
322
199
196
169
283
154
150
250
374
260
203
216
4,532
4,846
4,964
4,338
4,308
4,276
4,338
4,007
3,839
3,850
3,694
2,856
2,638
2,621
1,877
1,944
2,200
1,936
2,022
2,031
2,137
1,960
1,897
1,816
1,728
1,343
1,300
1,247
175
176
169
150
157
157
147
150
160
152
153
160
154
160
2,480
2,726
2,595
2,252
2,129
2,087
2,054
.,896
,782
,881
,813
,353
,184
,214
1,496
1,196
1,397
1,655
2,091
1,912
1,525
1,651
1,497
1,121
695
565
763
701
58
59
128
89
144
148
188
199
296
201
107
262
341
330
13,832
13,983
13,785
13,575
13,701
13,971
13,758
13,965
13,567
13,016
12,115
11,045
10,979
10,535
308
294
346
263
277
235
286
235
247
284
347
254
205
178
9,434
9,775
9,748
8,951
9,029
8,726
8,906
8,409
8,100
7,845
7,407
6,519
6,196
5,879
3,718
4,213
480
4,415
526
4,214
438
3,802
945
3,693
710
3,567 1,064
3,620
531
3,423
645
3,291
470
3,168
326
3,063
135
2,709
118
2,486
151
2,312
115
17
3,188
3,092
2,806
2,403
2,304
2,169
1,503
1,491
1,559
1,544
1,524
1,526
1,631
1,619
1,621
1,585
1,538
1,407
1,406
1,398
8,551
8,627
8,481
8,206
8,229
8,007
7,762
7,524
7,318
7,018
6,469
5,892
5,663
5,405
2,139
2,295
2,314
2,190
2,227
2,200
2,149
2,097
2,031
1,935
1,756
1,546
1,481
1,432
1,486
1,485
1,462
1,475
1,475
1,480
1,455
1,449
1,437
1,411
1,346
1,328
1,324
1,304
4,926
4,847
4,705
4,541
4,527
4,326
4,158
3,978
3,849
3,673
3,367
3,018
2,857
2,669
108
93
212
175
170
205
315
361
90
70
80
79
71
62
55
101
113
70
41
34
34
30
249
228
291
499
507
523
366
361
384
296
140
122
115
2,025
1,885
1,660
2,344
2,365
2,472
1,498
1,630
1,217
928
575
278
414
357
10,052
9,749
9,784
9,937
10,442
10,734
10,989
11,889
12,106
12,199
11,314
11,414
12,121
12,265
4,155
4,022
3,863
4,085
4,061
4,095
4,125
5,002
5,343
5,564
5,319
5,628
6,366
6,540
5,898
5,727
5,921
5,852
6,380
6,639
6,864
6,886
6,763
6,635
5,996
5,786
5,755
5,726
10,094
10,314
10,505
10,334
10,656
10,511
9,754
9,272
8,563
8,081
7,320
5,916
5,770
5,447
1,359
1,096
1,202
1,477
1,883
1,714
1,281
1,367
1,063
839
542
258
391
337
1,819
1,807
2,091
2,046
2,203
2,198
2,435
1,006
989
1,112
1,150
1,147
1,091
1,239
1,466
1,656
1,830
1,768
2,008
2,429
2,603
813
817
979
897
1,056
1,107
1,197
1,196
1,145
1,202
928
1,025
1,079
1,186
3,396
3,191
3,562
3,504
3,983
3,798
3,550
3,397
3,026
2,780
2,474
1,757
1,811
1,699
,765
,671
,484
4,221
4,429
4,397
2,480
2,694
2,545
2,462
2,367
2,326
2,213
2,147
2,078
1,985
1,796
1,574
1,503
1,450
NEW YORK CITY •
1929—June 29
Oct. 4_
Dec. 31
1930—Mar. 27
June 30
Sept. 24
Dec. 31
1931—Mar. 25
June 30
Sept. 29
Dec. 31
1932—June 30
Sept. 30
Dec. 31_
OTHER RESERVE CITIES
1929—June 29
Oct. 4_
Dec. 31
1930—Mar. 27
June 30
Sept. 24
Dec. 31
1931—Mar. 25
June 30
Sept. 29
Dec. 31
1932—June 30
Sept. 30
Dec. 31
3,975
3,604
3,811
3,632
3,656
8
51
59
18
54
122
158
91
67
35
38
58
44
75
108
242
301
337
212
212
189
167
62
62
65
413
250
609
353
643
167
227
124
56
16
7
14
12
140
144
163
207
171
164
120
114
101
81
48
36
36
28
316
376
208
258
129
115
49
36
30
32
16
13
9
2,801
3,032
2,697
3,033
3,508
3,789
3,611
3,388
3,253
3,416
3,685
3,947
4,035
4,676
4,750
4,561
4,226
4,154
4,427
4,362
,785
L, 727
2,313
2,408
2,301
2,133
2,187
2,466
2,462
1,846
1,717
1,769
1,754
1,999
2,161
2,308
2,364
2,342
2,260
2,093
1,966
1,961
1,900
4,623
4,554
4,439
4,475
4,554
4,589
4,519
4,550
4,555
4,606
4,392
4,226
4,187
4,114
1,384
1,361
1,267
1,273
1,229
1,219
1,159
1,224
1,279
1,433
1,418
1,432
1,471
1,474
3,240
3,193
3,172
3,202
3,326
3,370
3,359
3,326
3,276
3,172
2,974
2,794
2,715
2,640
4,306
4,387
3,991
3,729
3,459
3,317
3,050
2,585
2,456
2,298
"COUNTRY" BANKS
1929—June 29
Oct. 4 .
Dec. 31
1930—Mar. 27
June 30
Sept. 24
Dec. 31
1931—Mar. 25
June 30
Sept. 29
Dec. 31
1932—June 30
Sept. 30
D e c 31_
13,719
13,780
13,375
13,243
13,157
12,944
12,519
12,290
12,068
11,805
10,999
10,240
9,954
9,607
496
553
409
496
312
286
177
158
135
116
71
64
55
39
1
Loans (secured by stocks and bonds) to brokers and dealers in securities at New York City.
* Including loans to banks secured by stocks and bonds, reported separately after 1929 and estimated for preceding dates as one half of total
loans to banks.
* Central reserve city banks only.
Back figures.—This classification of loans is not available for dates prior to Oct. 3,1928, see Annual Report for 1931 (Table 53), but comparable
figures of total loans secured by stocks and bonds are given for June 30,1925-1928, in the board's Annual Report for 1928 (Table 52); for separate
figures of United States Government securities and other securities back to 1914, see Annual Report for 1931 (Table 52).
141
FEDERAL RESERVE BULLETIN
MAECH, 1
ALL BANKS IN THE UNITED STATES—TOTAL LOANS AND INVESTMENTS, DEPOSITS
]In millions of dollars. Includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all private
banks under State supervision]
Total loans and investments
All banks
Date
Deposits, exclusive of
interbank deposits
Nonmember banks
Member banks
NonMember member
banks
banks
Total
Loans
Investments
Total
Loans
Investments
All
banks
17,801
17,549
17,504
35,061
34,929
35,684
24,303
24, 325
25,155
10,758
10,604
10,529
22,204
22,291
22,582
15,161
15,346
15,607
7,043
6,945
6,975
53,398
53,720
56,766
32,133
32,138
34,826
21,265
21,582
21,940
40,557
41,512
42,201
41,898
17,462
16,962
16, 634
16, 519
35,393
35, 711
35,914
35,934
24,945
25,658
26,165
26,150
10,448
10,052
9,749
9,784
22,763
22,922
22,483
15,612
15,853
16,036
15,748
7,013
6,910
6,885
6,735
54,545
53, 852
55,180
55,289
33,215
32,284
33,004
33,865
21,330
21, 567
22,176
21,423
57,386
58,108
57,590
56,209
40,686
40,618
39,715
38,135
16,700
17,490
17,875
18,074
35,056
35,656
35,472
34,860
25,119
25, 214
24,738
23,870
9,937
10,442
10,734
10,989
22,331
22,453
22,118
21,349
15,568
15,404
14,977
14,264
6,763
7,048
7,141
7,085
53,185
54,954
52, 784
53,039
32,082
33,690
31,839
32,560
21,103
21,264
20,945
20,479
1931—Mar 25...
June 3 0 Sept. 29..
Dec. 31—
55,924
55,021
53,365
49,704
36,813
35,384
33,750
31,305
19, 111
19,637
19,615
18,399
34,729
33,923
33,073
30,575
22,840
21,816
20,874
19,261
11,889
12,106
12,199
11, 314
21,195
21,099
20,292
19,129
13,974
13,568
12,876
12,045
7,222
7,531
7,416
7,084
51,427
51, 782
49,152
45,821
31,153
31,566
20,274
20; 216
19,683
1932—June 30..
Sept. 30..
Dec. 3 1 . .
46,071
45,852
27,834
18,237
18,867
28,001
28,045
27,469
16,587
15,924
15,204
11,414
12,121
12,265
18,071
17,807
11,247
11,061
6,823
6,746
41,963
•41,942
24, 755
24,903
24,803
Total
Loans
Investments
1928—June 30
Oct. 3 . . . . .
Dec. 31
57,265
57,219
58,266
39,464
39,671
40,763
1929—Mar. 27..
June 29..
Oct. 4 . . . .
Dec. 31...
58,019
58,474
58,835
58,417
1930-Mar. 27..
June 30..
Sept. 24..
Dec, 31...
27,432
17,208
' 17,040
r
Revised.
Back figures.—See Annual Report for 1931 (Tables 45 and 46).
BANE LOANS AND INVESTMENTS, PERCENTAGE DISTRIBUTION
NUMBER OF BANES
Member banks
Date
Total i
[Figures for Sept. 30,1932]
Total
National
State
Nonmember
banks
1925—Dec. 31
28,257
9,489
8,048
1,441
1926— Dec. 31
27,367
9,260
7,906
1,354
18,107
1927—June 30
Dec. 31
26,765
26,416
9,099
9,034
7,790
7,759
1,309
1,275
17,666
17,382
25,941
25,576
8,929
8,837
7,685
7,629
1,244
1,208
17,012
16,739
1929—June 29
Dec. 31
25,110
24,630
8,707
8,522
7,530
7,403
1,177
1,119
16,403
16,108
1930—June 30
Dec. 31 . .
23,852
22,769
8,315
8,052
7,247
7,033
1,068
1,019
15,537
14,717
1931—June 30
Sept. 29.
Dec. 31
21,903
21, 294
19,966
7,782
7,599
7,246
6,800
6,653
6,368
982
946
878
14,121
13,695
12, 720
1928—June 30
Dec. 31
.
1932—June 30
Sept. 30
Dec. 31
19,046
18, 794
6,980
6,904
6,816
6,145
6,080
6,011
835
824
805
Total loans and
investments
Number
of banks Amount Percent(millions age disof dollars) tribution
18,768
All banks in the United States
Member banks—total.Reserve city banks (62 cities)
Central reserve city b a n k s New York City
Chicago
Other reserve city b a n k s New York City
Chicago..Other Federal reserve bank
cities (10 cities)
Federal reserve branch cities
(25 cities)
Other reserve cities (25 cities)...
" C o u n t r y " banks *
12,066
11,890
Nonmember banks
i All banks in the United States; includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and
all private banks under State supervision.
161485—33
3
1
18,794
45,852
100
6,904
28,045
61
374
18,091
39
36
11
7,112
1,192
16
3
9
27
16
7
4,832
11
3,852
1,060
9,954
8
2
22
17,807
39
92
131
88
6,530
11,890
Includes certain outlying banks in reserve cities.
142
FEDERAL RESERVE BULLETIN
MARCH,
1933
REPORTING MEMBER BANKS IN LEADING CITIES
[In millions of dollars. Monthly data are averages of weekly figures]
Total—all weekly reporting member banks
Loans and investments
Loans and investments
Borrowings
at
F.
R.
8. s
Total U.
curities banks
Month or date
Loans
All
on se- other
curities loans
Borrowings
at
F.
R.
S. seTotal U.
curities banks
Investments
Investments
Total
Other leading
cities
New York City
Total
All
Loans
on se- other
curities loans
Total
loans
and investments
Borrowings
at
F. R.
banks
1932—January
February—
March
April
May
June
July
August
SeptemberOctober
NovemberDecember..
20,178
19,775
19,434
19,096
19,112
18,877
18,419
18,587
18,739
19,026
18,987
18,840
5,644
5,497
5,388
5,150
4,975
4,811
4,616
4,578
4,524
4,437
4,280
4,319
7,331
7,214
6,987
6,820
6,727
6,609
6,455
6,319
6,229
6,168
6,120
6,021
7,203
7,064
7,059
7,126
7,410
7,457
7,348
7,690
7,986
8,421
8,587
8,500
3,943
3,856
3,866
3,875
4,121
4,200
4,144
4,499
4,759
5,140
5,279
5,220
469
484
368
277
185
191
212
164
128
103
99
75
6,921
6,645
6,521
6,492
6,647
6,541
6,353
6,517
6,692
6,914
7,059
7,047
2,209
2,127
2,065
1,947
1,851
1,745
1,644
1,657
1,669
1,636
1,573
1,619
2,220
2,171
2,078
2,029
2,038
1,995
1,896
1,819
1,810
1,797
1,856
1,841
2,492
2,347
2,378
2,516
2,758
2,801
2,813
3,041
3,213
3,481
3,630
3,587
1,631
1,521
1,547
1,620
1,797
1,849
1,860
2,081
2,220
2,447
2,556
2,513
13,257
13,130
12,913
12,604
12,465
12,336
12,066
12,070
12,047
12,112
11,928
11,793
435
461
365
277
185
191
212
164
128
103
99
75
1933—January...
February..
18,665
18,532
4,223
4,217
5,903
5,819
8,539
8,496
5,260
5,205
63
95
7,077
7,046
1,571
1,621
1,839
1,797
2,575
2,537
11,588
11,486
63
95
1932—Nov. 2
Nov. 9.....
Nov. 16...
Nov. 2 3 . . .
Nov. 30...
19,026
19,026
18,947
18,933
19,002
4,311
4,295
4,249
4,257
4,288
6,130
6,130
6,094
6,118
6,125
8,585
8,601
8,604
8,558
8,589
5,284
5,291
5,303
5,252
5,266
105
99
98
95
97
6,998
7,044
7,026
7,057
7,169
1,576
1,570
1,555
1,567
1,598
1,828
1,850
1,826
1,876
1,900
3,667
3,628
. .
3,594
3,624
3,645
3,614
3,671
2,534
2,555
2,576
2,538
2,578
12,028
11,982
11,921
11,876
11,833
105
99
98
95
97
Dec.
Dec.
Dec.
Dec.
7__
14.
21.
28.
18,841
18,839
18,874
18,804
4,307
4,322
4,331
4,315
6,057
6,009
6,037
5,982
8,477
8,508
8,506
8,507
5,226
5,209
5,236
5,207
89
79
64
67
7,060
7,052
7,055
7,020
1,625
1,619
1,620
1,612
1,848
1,813
1,866
1,838
3,587
3,620
3,569
3,570
2,546
2,523
2,502
2,481
11,781
11,787
11,819
11,784
79
64
67
1933-Jan.
Jan.
Jan.
Jan.
4..
11..
18.
25.
18, 713
18,673
18,655
18,619
' 4,271 '5,943
4,237
4,213 5,902
5,867
4,173
8,499
8,537
8,540
8,579
5,205
5,262
5,291
61
58
59
76
7,037
7,055
7,086
7,132
1,584
1,580
1,559
1,562
1,849
1,822
1,849
1,836
3,604
3,653
3,678
3,734
2,502
2,560
2,609
2,631
11,676
11,618
11, 569
11,487
61
58
Feb. 1 Feb. 8 - .
Feb.15.
Feb. 21.
18,725
18,573
18,571
18,257
4,259
4,204
4,206
4,199
5,907
5,824
5,877
5,666
8,559
8,545
8,488
8,392
5,253
5,248
5,206
5,115
81
70
100
130
7,222
7,073
7,078
6,809
1,643
1,606
1,614
1,621
1,878
1,799
1,858
1,653
3,701
3,668
3,606
3,535
2,600
2,572
2,522
2,452
11,503
11,500
11,493
11,448
81
70
100
130
Mar. 1_.
17,823
4,234
5,393
8,196
4,908
488
6,512
1,640
1,439
3,433
2,338
11,311
305
•
183
' Revised»
Back figures.—See Annual Reports for 1931 (Tables 58-60) and 1930 (Tables 52-54).
BROKERS' LOANS
REPORTED BY THE NEW YORK STOCK EXCHANGE
[Net borrowings on demand and on time. In millions of dollars]
From New
From private
York banks banks, brokers,
and trust com- foreign banking
panies
agencies, etc.
Total
End of month
1932
1933
1932
1933
1932
January
February
March
512
525
533
April
May
June
379
300
244
300
243
194
79
57
49
July
August
September..
242
332
380
195
248
292
47
85
88
October _
November
December
325
338
347
263
278
279
61
61
68
359
374
385
391
270
138
140
142
1933
90
Back figures.—See Annual Reports for 1931 (Table 63} and 1927
(Table 47).
MADE BY REPORTING MEMBER BANKS IN N. Y. CITY
[In millions of dollars. Monthly data are averages of weekly figures]
Month or date
1932—January...
February..
March
April
May
June
July
August
September
October...
November.
December.
1933—January...
February..
Feb. 1
Feb. 8
Feb. 15_...
Feb. 21.....
Total
For acFor
count of For acown ac- out-of- count of
count
town
others
banks l
544
495
531
500
436
377
335
344
409
411
354
393
380
433
473
417
432
423
385
342
309
319
385
389
336
377
365
41 6
454
422
427
429
438
405
410
410
i Member and nonmember banks outside New York City (domestic
banks only).
Back figures.—See Annual Report for 1933 (Table 62), 1930 (Table 56),
etc.
143
FEDERAL RESERVE BULLETIN
MARCH, 1933
ACCEPTANCES AND COMMERCIAL PAPER
BANKERS' ACCEPTANCES OUTSTANDING (DOLLAR
ACCEPTANCES)
CLASSES OF BANKERS' ACCEPTANCES (DOLLAR
ACCEPTANCES)
[In millions of dollars]
[In millions of dollars]
End of month
Total
outstanding
Held by accepting
banks
For
acFor count
own of for- Total
aceign
count correspondents
Own Bills
bills bought
Held
by
others
1930— October
] ,508
November- ]L, 571
December.. ]L, 656
141
143
328
433
429
439
384
493
371
172
180
90
212
313
282
550
607
417
1931—January
February...
March
April
May
June..
July
August
SeptemberOctober
NovemberDecember. .
89
85
123
162
124
95
39
70
420
647
418
305
447
456
431
409
380
341
243
228
100
99
126
251
571
550
472
410
464
554
668
606
410
230
296
262
134
151
131
125
171
196
232
168
162
112
125
131
437
398
341
285
293
357
436
438
248
118
171
131
412
429
440
441
444
379
278
186
67
63
161
156
1,520
1,520
1,467
1,422
1,413
1,368
1,228
1,090
996
]1,040
]1,002
974
1932—January
February...
March
April
May
June
July
August
SeptemberOctober
November..
DecemDer..
961
919
911
879
787
747
705
681
683
699
720
710
119
76
36
16
4
36
12
3
2
3
4
4
314
312
335
292
183
98
59
49
43
39
32
40
332
343
377
455
510
518
563
574
573
605
655
604
159
175
155
188
225
200
197
198
156
199
268
224
174
168
222
268
286
318
366
376
414
406
386
380
195
189
163
115
90
96
70
55
64
52
28
62
1933—January
February
707
2
307
41
30
626
256
370
38
End of month
OUTSTANDING
1932—January..
February
March.. .
April.
May
JuneJuly
August
September... .
October
November
December
961
919
911
879
787
747
705
681
683
699
720
710
150
142
129
118
103
97
85
76
73
81
81
79
207
195
205
199
184
173
162
152
156
157
161
164
272
271
287
251
217
193
178
192
212
222
237
230
34
26
23
17
15
13
15
11
8
6
9
10
298
284
287
294
289
271
265
250
234
231
232
228
1933—January
707
71
166
222
11
237
119
76
36
16
5
36
12
16
9
4
2
19
12
6
2
32
27
12
6
3
19
5
1
1
2
3
2
2
47
HELD BY F. R. BANKS
(OWN ACCOUNT) »
1932—January _
February
March .
April
May...
June
July
August.
September
October .
November
December
1933—January
Figures for acceptances outstanding (and held b y accepting banks)
from American Acceptance Council*
Back figures—See Annual Reports for 1931 (Table 70), 1930 (Table 64),
1929 (Table 58), and 1928 (Table 61).
ACCEPTANCES PAYABLE IN FOREIGN CURRENCIESHOLDINGS OF FEDERAL RESERVE BANKS
January...
February..
March
April
May
June
July
August
September
October.. .
November.
December.
1930
1,035
1,038
1,040
1,054
1,058
1,064
1,065
1,071
1,075
21,583
31,587
35,983
1931
36,119
23,958
1,063
1,074
1,073
10,551
34,371
145,215
48,804
33,501
33,386
33,429
3
4
4
2
6
1
4
1
(2)
(2)
(*)
l
(2)
5
4
1
1
1
1
2
1
1
I
1
(J)
1
«
1
COMMERCIAL PAPER OUTSTANDING
[In millions of dollarsj
1932
1933
33,444
33,478
30, 778
30,736
30,837
30, 762
30,645
30,834
30,849
30,659
30,652
29.489
29,036
28,997
Back figures.—See Annual Reports for 1928 (Table 12), 1927 (Table
12), 1926 (Table 24), etc.
3
2
(2)
(2)
25
13
5
* Total holdings of Federal reserve banks include a small amount of
unclassified acceptances.
J Less than $500,000.
Back figures.—See Annual Reports for 1931 (Tables 67 and 15), 193(1
(Tables 61 and 14), etc.
[In thousands of dollars]
End of month
Based
Based
on goods
on
stored in
goods
stored
Based Based United
in
States
on ex- (ware- Dollar foreign
im
ports house
excounTotal
change tries or
into from credits)
shipped
or
U.S. U.S. shipped
bebetween
tween
domestic
foreign
points
points
3333
Held by Federal reserve
banks
End of month
January
February...
March
Ap]
April
Maay.
June.
July
August
September.
October
November.
December..
1930
404
457
529
553
541
527
528
526
513
485
448
358
1931
327
315
311
307
305
292
289
271
248
210
174
118
1932
108
108
106
108
111
103
100
108
110
113
110
81
1933
85-
Back figures.—See Annual Reports for 1931 (Table 66) and 1930 (Table
60).
144
FEDERAL RESERVE BULLETIN
MARCH, 1933
BANK SUSPENSIONS AND BANES REOPENED
Banks suspended
Deposits (in thousands of dollars)
Number
Year and month
Members
Nonmem- All banks
Nabers
National State
tional State
501
354
648
776
612
956
662
491
642
.1,345
2,298
1,456
61
45
90
122
118
125
91
57
64
161
409
276
1931—August
September
October
November
December
158
305
522
175
358
46
100
35
63
1932—January
February
March
April
May
June
July
Aiigust
September
October..
November.
December
342
121
••46
74
82
151
132
86
67
'102
'93
'161
74
24
7
6
14
44
20
17
12
20
19
19
1933—January
'241
»148
'44
*20
..—
February..,
Deposits (in thousands of
dollars)
Number
Members
All
banks
1921
1922
1923
1924
1926
1926
1927
1928
1929
1930
1931
1932
Banks reopened
Nonmembers
All
Mem- Nonbanks bers members
19
431
196,460
21,285
21,218 153,957
12
297
19,092
86, 478
110,721
5,151
34
32,904
524
188,701
18, 324 137, 473
37
617
213,338
13, 580
28
466
172,900
58, 537
8,727 105,636
35
203,676
796
272,488
47,866
33
538
193,891
46,581
19,755 127,555
16
96,402
418
138,642
31,619
10,621
17
561
234,532
37,007
20,128 177,397
26 1,158
864,715 173, 290 207,150 484,275
108 1,781 1,691, 510 439,171 294,357 957, 982
'55 1,125 ' 715,626 214,150 ' 55,153 '446,323
12
16
25
8
18
13
6
15
*7
117
243
397
132
277
180,028
233,505
471,380
67,939
277,051
31,629
79,446
111, 088
255 '218,867
91
' 57,266
'39
' 14,760
63
31,613
62
'34,370
103 ' 132,661
108
' 48,743
66
' 29,513
51
13,508
'82
'20,092
'68
'43,319
••137 '70,914
'63,482
' 17,127
4,484
2,634
' 6,263
'42,555
' 17,722
'11,075
2,980
6,209
' 26,224
'13,395
'182
'55,938
P 15,881
87,448
'135,020
* 72,870
Members
All
banks
3,132
11,618
5,068
7,190
6,779
8,179
8,311
6,610
2,273
14,361
23,947
6,606
15,272
9,839
52,431
27,418
9,117
23,556
58,061
53,944 104,243
71,666 '204,528
17,493
50
35,565
41
11,674
23
22,462
74
16,618
48
60,610
135
35,729
84
15,727
34
25,829
53
61,599
140
245 158,187
238 •276,194
65
37
94
62
149
95
39
58
147
276
290
52,660
30,272
117,259
4,216
25,768
95,739
123,787
243,033
35,684
163,835
14,396
4,258
5,096
13,041
18,579
10,873
8,427
144,512
31,712
' 10,276
17,092
26,870
82,517
29,252
17,640
8,803
'13,883
' 13,737
'50,029
10,952
14,730
18,902
11,041
33,214
11,501
69,959
33,498
14,082
38,494
12,487
'7,334
' 14,394 ' 64,688
* 7,788 P49,201
'14,473
p 14,958
11,887
1,237
7,589
1,769
798
1,725
3,358
'7,490
Nonmembers
991
3,684
589
3,293
3,026
9,714
1,793
4,219
2,891
16,382
5,018
2,297
20,291
2,078
664
14,396
4,258
4,105
9,357
17,990
7,659
11,704
'9,188
9,248
28,995
8,610
53,577
28,480
11,785
18,203
10,409
' 6,670
' 3,627 ' 10,846
* 14,958
p Preliminary.
' Revised.
Banks suspended and banks reopened.—The statistics of bank suspensions relate to banks closed to the public either temporarily or permanently,
orTaccount of financial difficulties, by order of supervisory authorities or directors of the bank. They do not include banks closed temporarily
under special or "moratorium" holidays declared by civil authorities. Reopenings are recorded as of the month in which they occur, and include
for any given month reopenings both of banks closed during the month and of banks closed earlier.
Deposits.—Figures of deposits in banks suspended are as of date of suspension whenever data as of this date are available; otherwise they are
w
as of the latest available call date prior to suspension. For banks reopened the figures of deposits are not as of date of reopening, which are seldom
available, but are taken from the record of suspensions.
Back figures.See Annual Reports for 1931 (Table 73) and 1928 (Table 64).
MEMBER BANK HOLDINGS OF ELIGIBLE ASSETS
[In millions of dollars]
Holdings of Government securities i and eligible paper (including paper under rediscount)
By reserve city banks
Call date
1929—Oct. 4
Dec. 31
1930-Mar. 27....
June 30
Sept. 24.
Dec. 31
1931—Mar. 25....
June 30
Sept. 29....
Dec. 31
1932—June 30
Sept. 30.—.
Dec. 31
U.S.
Government securities
Eligible
paper
2,469
2,403
2,619
2,640
2,682
2,777
3,584
3,871
3,942
3,706
3,985
4,623
4,776
2,865
2,713
2,542
2,285
2,271
2,100
2,045
1,870
1,787
1,505
1,457
l,50S
1,403
Total
5,334
5,116
5,161
4,925
4,953
4,877
5,629
6,741
5,729
5,211
5,442
6,131
6,179
By "country" banks
U.S.
Government securities
Eligible
paper
912
814
818
772
764
708
776
836
994
989
994
1,003
987
1,733
1,684
1,662
1,620
1,641
1,438
1,373
1,328
1,209
1,068
971
916
844
Total
2,645
2,498
2,480
2,392
2,305
2,146
2,149
2,164
2,203
2,056
1,965
1,919
1,831
By all member banks
U.S.
Government securities
Eligible
paper
3,381
3,217
3,438
3,412
3,446
3,485
4,360
4,707
4,936
4,694
4,979
6,626
5,763
4,598
4,397
4,204
3,905
3,812
3,538
3,418
3,198
2,996
2,573
2,428
2,424
2,246
i Exclusive of approximately $660,000,000 of Government securities pledged against national bank note circulation.
Bank figures.—See Annual Report for 1931 (Table 50).
Total
7,979
7,614
7,642
7,317
7,258
7,023
7,778
7,905
7,932
7,267
7,407
8,050
8,009
Member
bank
borrowings at
Federal
banks
646
206
274
173
248
165
147
323
623
440
331
235
145
FEDERAL RESERVE BULLETIN
M A R C H , 1933
FEDERAL RESERVE BANE RATES
OPEN-MARKET RATES
DISCOUNT RATES
RATES IN NEW YORK CITY
[Rates for member banks on eligible* paper)
Average rate Average yield
Prevailing rate on—
Rate in
effect on
Mar. 15
Federal reserve bank
Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
MinneapolisKansas City._
Dallas
San Francisco.
m
Date established
Oct.
Mar.
Oct.
Oct.
Jan.
Nov.
Mar.
Oct.
Sept.
Oct.
Jan.
Oct.
Previous
rate
17,1931
3,1933
22,1931
24.1931
25.1932
14,1931
4,1933
22,1931
12.1930
23.1931
28.1932
21,1931
2H
2H
4
3
4
BUYING RATES O N ACCEPTANCES
[Buying rates at the Federal Reserve Bank of New York]
Rate in
effect on
Mar. 15
1-15 d a y s —
16-30 days. .
31-45 days.46-60 days__
61-90 days—
91-120 days.
121-180 days
Date established
Prime
bank- Time
ers'
accept- loans,
ances, d a90
ys2
90
days
4
3
Back figures.—See Annual Report for 1931 (Table 36).
Maturity
Call loans i
Month or week Prime
commercial
paper,
4 to 6
months
Previous
rate»
Mar. 13,1933
_.._do
3H ....do
....do
_„_do
....do
—do
m
i For changes during period Feb. 16-Mar. 13, see p. 132.
NOTE.—Rates on prime bankers' acceptances. Higher rates may b°
charged for other classes of bills.
Backfigures.—SeeAnnual Reports for 1931 (Table 37) and 1928 (Table
35).
1932
January
February
March
April
May
June
July
August
September
October
November
December
2.65
2.50
2.50
2.50
2.50
2.50
2.08
2.00
2.00
1.35
1.00
2.48
2.42
«2.25
1.11
.31
H
2.61
2.50
2.50
2.50
2.50
2.50
2.08
2.00
2.00
1.35
1.00
1.00
LOO
*.O4
X-K
X-H
1.00
1.00
1.00
1.00
H 1.00
X 1.00
X 1.00
-IX 1.00
1.00
1.00
1.00
1.00
2 -3
7
2 -2H
2 -2X
1V4.-2K
A
H
H
M-!
m-m
1933
January
February
_
Week ending—
Feb. 4
Feb. 11
Feb. 18
Feb. 25
U.S.
Treasury
notes Treasury
and
Re- certifi- bonds*
New newal
cates,
3 to 6
months
X
X
z
ArVi
Vs l
4.27
4.11
3.92
3.74
3.77
3.78
3.65
3.57
3.54
3.54
3.55
3.48
«.34
.22
.14
.07
.01
3.45
.03
3.37
3.39
3.44
3.61
i Stock exchange call loans; new and renewal rates.
> Stock exchange 90-day time loans.
• 3 issues—3^, ZH, 4 per cent; yields calculated on basis of last redemption dates—1947, 1956, and 1954.
* Change of issues on which yield is computed.
Back figures.-—See Annual Report for 1931 (Tables 39 and 40), 1930
(Tables 36 and 37), 1929 (Tables 35 and 36), etc.
RATES CHARGED CUSTOMERS BY BANES IN PRINCIPAL CITIES
[Weighted averages of prevailing rates]
New York City
8 other northern and eastern cities
27 southern and western cities
Month
1929
January
February _
March
April
May
June
July
August
September
. _ .
October
November.
5.74
5.73
5.81
5.85
5 88
5.93
5.88
6.05
6.06
6.08
5.88
5.74
1930
5.64
5.35
5.22
4.91
4.74
4.59
4.48
4.41
4.29
4.26
4.17
4.16
1931
4.24
4.31
4.20
4.17
4.11
4.13
4.05
3.97
3.93
4.27
4.67
4.64
1932
4.71
4.71
4.72
4.69
4.55
4.61
4.42
4.45
4.30
4.35
4.12
4.22
1933
4.12
4.11
1929
5.87
5.86
5.91
6.00
6.09
6.02
6.08
6.11
6.24
6.25
6.12
5.94
1930
5.88
5.66
5.47
5.22
5.13
5.06
4.81
4.79
4.74
4.75
4.66
4.68
1931
4.61
4.63
4.62
4.57
4 55
4.49
4.48
4.47
4.48
4.62
4.87
4.91
1932
5.07
5.13
5.14
5.10
5 14
5.13
5.05
5.12
5.03
4.96
4.88
4.88
1933
4.89
4.84
1929
5.94
5.96
6.04
6.07
6 10
6.16
6.17
6.22
6.27
6.29
6.29
6.20
1930
6.12
6.05
5.98
5.86
5 75
5.69
5.63
5.58
5.55
5.54
5.50
5.43
1931
5.50
5.43
5.40
5.36
5 26
5.34
5.30
5.28
5.32
5.38
5.53
5.56
1932
5.61
5.61
5.64
5 63
5 64
5.62
5.63
5.68
5.63
5.56
5.55
5.60
1933
5.60
5.56
NOTE.—-Figures relate to rates charged by reporting banks to their own customers as distinguished from open-market rates (which are given In
preceding table). All averages are based on rates reported for 3 types of customer loans—commercial loans, and demand and time loans on securities.
The method of computing the averages takes into account (a) the relative importance of each of these 3 types of loans and (6) the relative importance
of each reporting bank, as measured by total loans. In the two group averages the average rate for each city included is weighted according to the
importance of that city in the group, as measured by the loans of all banks in the city.
Back figures.—See Annual Report for 1931 (Table 42).
146
FEDERAL RESERVE BULLETIN
M A R C H , 1933
SECURITY PRICES AND SECURITY ISSUES
SECURITY PRICES
[Index numbers of Standard Statistics Co. Monthly data are averages of weekly figures]
Common stocks (1926-100)
PreBonds* ferred
stocks*
Month or date
20
Number of issues
1932—January
FebruaryMarch
April
May
June
July
August
September.
October
November.
December.
1933—January
February...
Febl
Feb.8
Feb. 15
Feb. 21
81.0
80.3
80.8
79.4
75.2
72.2
74.2
83.2
85.8
84.1
81.9
81.2
84.1
82.5
96.5
96.3
96.2
94.2
90.3
83.6
85.3
98.6
101.8
99.8
97.4
95.4
97.8
95.7
83.7
83.4
82.6
80.2
97.2
96.8
94.9
93.7
Selected groups of industrial issues
Rail- Public
Total IndusCoptrial road utility Auto- Build
ing Chain Chem- per
mobile equip- store
ical
and
ment
421
351
33
37
13
12
Electrical Maequip- chinery
ment
16
10
Oil
15
Steel
Textile
28
10
94
31
31
31
26
23
20
22
33
89
33
27
25
26
25
24
1
Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity
Back figures.—See (for principal series) Annual Report for 1931 (Table 129).
* 20 high-grade industrials; average price.
CAPITAL ISSUES
UNITED STATES GOVERNMENT SECURITIES
[Long-term; i. e. t 1 year or more. In millions of dollars]
[In millions of dollars]
New issues
Total
(doYear>nd month mestic
and
foreign)
To-'
taP
2,452
2,667
3,183
2,385
2,078
2,980
1,240
305
60
73
94
43
124
1,352
1,344
1,475
1,379
1,418
1,434
1,235
755
138
35
109
30
84
74
25
34
63
36
28
99
65
33
19
6,201
6,314
7,556
8,040
10,091
6,909
3,099
1,165
184
73
162
71
91
78
106
63
75
94
44
124
5,125
5,189
6,219
6,789
9,420
6,004
2,860
1,157
65
1933—January
Corporate
State
Forand
eign
mu- Bonds
niciand Stocks
pal
notes
184
73
162
71
91
78
104
42
35
47
15
7
4
62
25
6
47
9
6
1,153 1,076
1,087 1,125
1,474 1,337
2,961 1,251
5,924
671
1,503
905
311
229
20
8
4
4
1
0
0
0
0
o2
1
2
3
0
2
2
0
2
1
0
4
oooo
1925
1926
1927
1928
1929
1930
1931
1932
1932—January
FebruaryMarch
April
May
June
July
August
SeptemberOctober
November..
December..
Domestic
3
0
Refund>g
issues
(domestic
and
foreign)
925
1,046
2,220
1,858
1,422
711
949
583
14
21
29
72
32
64
57
108
76
43
32
35
45
i Includes issues of Federal land banks and Federal intermediate credit
banks, not shown separately.
Sources.—For domestic issues: Commercial and Financial Chronicle;
for foreign issues (issues publicly offered) annual totals are as finally
reported by Department of Commerce, while monthly figures are as
compiled currently and are subject to revision.
Back figures.—See (for figures of new issues—annual and quarterly
basis) Annual Report for 1931 (Table 128).
Outstanding at end
of month
Month
1931
November
December
Total
Bonds Certificates Total
and
and
notes
bills
17,040
17,528
14,955
15,092
2,085
2,436
17,515
17,820
18,190
18,287
18,729
19,161
19,297
19,758
20,296
20,485
20,476
20,448
15,102
15,102
15.102
15.103
15,318
15,715
15,744
16,454
17,288
17,796
17,796
17,522
-26
137
2,413
-13
2,718
305
3,088
370
3,184
97
3,411
442
3,446) 432
3,553
136
3,304
461
3,008
538
2,689
2,680
2,926
10
Total (12 months).
1933
January
._
February
20,454
20, 685
17,528
17,806
Bonds Certifand icates
and
notes bills
12
488
1,754
Total (12 months).
1932
January
February
March
April
May
June...
July
August
September
October
November
December
Increase or decrease
(—) during month
2,926
2,879
6
231
351
1,116
215
397
29
710
834
508
-274
305
370
96
227
35
107
-249
-296
-319
-9
246
2,430
490
6
278
-47
NOTE.—Figures relate to interest-bearing public debt; matured and
noninterest-bearing debt amounted to $350,000,000 at the end of February, 1933. Figures include obligations held in Government trust funds.
Bonds and notes are long-term—i. e., 1 year or more (figuring from
date of issue); certificates and bills, shorter term.
147
FEDERAL RESERVE BULLETIN
MARCH, 1933
PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES
[Index numbers; 1923-1925 average—100. The terms adjusted and unadjusted refer to adjustment for seasonal variation]
Construction contracts awarded (value) 2
Industrial production *
Year and
month
Factory
pay
rolls 3
Freight-car
loadings * * Commodity
prices3
Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Adjusted justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed
Manufactures1
Total i
Minerals i
Residential
Total
Factory employment 3
All other
44
30
44
68
81
95
124
121
117
126
87
50
37
13
1919
1920
1921
1922
1923
1924
1925.
1926
1927
1928
1929
1930
1931
1932
83
87
67
85
101
95
104
108
106
111
119
96
81
64
1929
May
June
July
August-—
September
October. _
November
December
126
125
120
122
123
121
108
96
122
125
124
121
121
118
110
103
128
127
120
122
123
119
107
93
123
127
125
122
121
119
110
101
116
116
118
121
127
127
114
110
117
114
116
115
118
116
110
116
143
144
136
129
112
104
94
84
121
126
124
122
110
107
103
102
113
102
94
84
73
67
66
53
97
95
93
86
73
67
67
61
168
178
170
166
144
135
116
109
141
152
149
152
140
139
132
136
102
102
102
104
105
103
99
95
1930
January..
February.
March
April
May
June
July
AugustSeptember
October..
November
December
103
109
106
107
105
99
91
90
92
90
84
77
106
107
104
104
102
98
93
90
90
88
86
84
102
110
109
110
106
98
89
88
90
87
82
74
105
107
104
104
101
97
92
89
89
86
85
82
108
104
91
94
102
103
100
101
101
105
96
89
110
108
98
104
104
102
100
96
94
95
92
93
78
89
102
113
125
116
107
85
82
75
68
59
95
104
102
101
105
99
95
81
81
78
76
73
46
44
54
62
61
54
48
48
52
51
46
37
56
49
52
53
52
49
47
49
52
52
48
43
104
126
141
156
178
166
155
115
108
94
86
77
128
148
144
140
148
140
135
106
105
99
99
98
1931
January _.
FebruaryMarch
April
May
June
July
August...
September
October..
November
December
82
87
90
90
89
83
80
78
77
75
72
68
84
86
87
88
87
83
82
78
76
73
73
74
81
88
91
91
90
83
79
77
76
72
70
66
83
86
87
87
87
82
82
78
75
71
71
73
87
84
82
83
84
86
86
82
83
90
84
79
89
87
89
91
87
87
86
79
78
83
81
84
58
68
77
82
78
74
68
63
59
52
43
30
71
79
77
73
65
63
61
59
59
55
49
38
37
42
50
52
47
41
36
32
32
29
26
20
44
47
47
44
40
37
35
33
32
30
27
23
75
89
98
107
104
101
94
87
81
71
57
39
1932
January..
FebruaryMarch
April
May
June
July.
August...
September
October..
November
December
71
71
68
64
61
59
56
59
'67
68
65
60
72
69
67
63
60
59
58
60
66
'67
65
66
70
70
66
63
60
59
55
58
'66
66
63
58
71
68
' 64
61
58
58
57
59
66
65
63
64
74
75
77
72
65
61
62
66
73
80
78
72
77
78
84
79
67
63
64
65
70
74
75
76
25
23
26
31
31
32
31
. 32
30
28
24
22
31
27
26
27
26
27
27
30
30
29
27
28
16
15
16
16
14
12
12
11
12
12
10
8
19
17
15
14
12
11
11
12
12
12
10
9
1933
January..
,64
,63
,64
71
73
18
22
7
8
84
87
67
86
101
94
105
108
106
112
119
95
80
63
63
63
56
79
84
94
122
129
129
135
117
92
63
28
77
89
70
74
105
96
99
108
107
106
115
99
84
71
139
154
98
97
101
98
104
100
95
97
95
86
73
65
98
118
77
81
103
96
101
104
102
102
108
87
66
45
84
91
79
87
100
97
103
106
103
103
106
92
75
56
102
103
103
103
102
101
99
97
111
110
106
111
112
111
103
99
109
110
111
115
121
118
102
89
107
108
107
107
106
104
102
102
95
95
97
96
96
95
94
93
93
93
93
93
91
89
86
85
86
84
81
79
96
94
93
92
91
90
87
84
83
82
81
80
94
98
98
97
94
91
83
82
83
81
75
74
89
91
90
93
97
95
95
96
99
97
86
74
100
99
96
97
96
93
92
89
87
86
84
84
93
91
90
90
89
87
84
84
84
83
81
80
93
104
100
96
85
84
82
81
80
76
67
50
76
77
78
78
77
75
74
74
75
71
69
68
78
78
78
78
78
76
75
74
73
70
69
69
68
73
75
74
72
68
64
64
62
59
56
56
74
74
75
77
79
77
78
76
78
78
70
61
82
80
80
80
79
77
76
72
69
69
68
69
78
77
76
75
73
72
72
72
71
'70
70
69
33
30
35
43
45
47
46
48
45
41
35
33
41
35
36
38
37
39
40
45
44
43
41
43
66
67
66
64
61
59
57
59
62
62
61
60
68
68
66
64
62
60
58
59
60
61
61
61
52
54
52
49
46
43
40
40
42
44
42
41
58
59
58
57
53
52
51
53
61
65
58
52
64
62
61
59
54
52
51
51
54
57
57
58
67
66
66
66
64
64
65
65
65
64
64
63
27
33
58
59
39
51
56
61
79
90
65
88
86
94
120
135
139
142
142
125
84
40
107
108
82
90
104
96
100
101
99
97
101
88
74
62
r
Preliminary.
Revised.
• Average per working day.
For indexes of groups and separate industries see p. 204; for description see BULLETIN for February and March, 1927; for back figures see
BULLETIN
for March, 1932, p. 194.
1
3-mqnth moving average, centered at second month; for description and back figures see BULLETIN for July, 1931, p. 358.
3
For
indexes
of groups and separate industries see p. 205; for description and back figures see BULLETIN for November, 1929, and November, 1930.
4
For indexes of groups see p. 148; for back figures see BULLETIN for February, 1931, p. 108.
1
Index of Bureau of Labor Statistics (784 price series), 1926=100. Index numbers for groups of commodities are given on p. 206.
1
148
FEDERAL RESERVE BULLETIN
MARCH, 1933
MERCHANDISE EXPORTS AND IMPORTS
[In millions of dollars]
Merchandise exports
Excess of exports
Merchandise imports
Month
1931
1930
1929
1932
1933
1929
488
442
490
411
349
370
250
224
236
150
164
155
April
May
June
425
385
393
332
320
295
215
204
187
135
132
114
July
August
September
403
381
267
298
181
165
107
109
353
369
January...
February
March
. ..
437
312
180
121
132
1930
1931
1932
1933
1930
1929
1931
369
369
384
311
282
300
183
175
210
136
131
131
411
400
308
285
353
250
186
180
173
127
112
110
221
218
174
167
79
91
50
11
46
79
226
170
98
86
86
351
r
96
119
72
106
100
67
69
66.
49
26
15
23
24
15
—15
40
24
35
44
29
24
14
9
20
4
6
2
27
10
34
October
November
December
529
327
205
153
391
247
169
105
137
442
427
289
275
194
184
139
132
338
310
204
209
149
154
104
97
104
117
80
85
66
36
44
30
Year
5,241
3,843
2,424
1,612
4,399
3,061
2,091
1,323
842
782
334
1933
1932
25
18
r
48
34
35
289
'Revised.
DEPARTMENT STORES—SALES, STOCKS
FREIGHT-CAR LOADINGS, BY CLASSES
[Index numbers; 1923-1925 average—100]
[Index numbers; 1923-1925 average-100]
Index of stocks (end of
month)
Index of sales »
1932
Sept.
Adjusted
Adjusted
Without
Without
for seasonal seasonal ad- for seasonal seasonal adjustment
variation
variation
justment
Month
1932' 1933 1932'
64
64
69
1933 1932' 1933 1932' 1933
79
74
75
59
73
70 — —
69
72
69
72
66
68
67
69
65
July
August
September
65
65
68
46
49
71
64
61
60
59
59
63
October
November
December
69
63 -----60
61
61 -----60
67
69 ::::::
56
January February
March
April
May
June
.
,
Year
78
78
72
60
*61
49
*50
75
73 -----106
69
66
69
73
72
52
66
* Based throughout on figures of daily average sales—with allowance
for changes from month to month in number of Saturdays and for 6
national holidays: New Year's Day, Memorial Day, Independence Day
Labor Day, Thanksgiving Day, and Christmas. Adjustment for seal
sonal variation makes allowance in March and April for the effect"
B
upon sales of changes in the date of E aster.
v Preliminary.
' Figures for 1931 and 1932 revised.
Backfigures.—SeeBULLETIN for November, 1930, p. 686.
Oct.
1233
Nov.
Dec.
Jan.
Adjusted for seasonal variation
Total
Coal . . .
Coke
Orain and grain products
Livestock
Forest products
Ore
Miscellaneous
Merchandise»
54
59
32
57
68
39
57
66
40
58
69
45
56
56
40
68
54
24
10
65
52
25
12
59
51
24
10
59
50
22
20
61
50
22
20
52
69
56
69
57
68
57
69
57
69
Without seasonal adjustment
Total
-.
Coal
Coke
Qrain and grain products
Livestock
Forest products
Ore
Miscellaneous1_
Merchandise ..
65
77
58
72
31
40
41
48
44
82
64
72
69
63
59
25
16
26
16
57
50
59
53
62
66
72
23
7
61
64
72
56
70
52
74
51
63
18
5
20
5
45
64
45
65
i In less-than-carload lots.
Based on daily average loadings. Source of basic data: American
Railway Association.
Backfigures.—SeeBULLETIN for February, 1931, pp. 108-110.
MARCH, 1933
FEDERAL RESERVE BULLETIN
149
FOREIGN BANKING AND BUSINESS CONDITIONS
ANNUAL REPORT OF THE BANK OF FRANCE
The annual report of the Bank of France,
covering the year 1932, was presented to the
general meeting of shareholders on January 26,
1933. The text of the report is as follows:*
Our previous report reviewed the origin and
development of the crisis, which began to show
its first symptoms as early as 1929. During
1932 international trade underwent a new
recession; unemployment continued to increase;
monetary systems, seriously disorganized in a
number of countries, failed to recover the
stability which can be obtained only after years
of patient effort. Everywhere political unrest,
uncertainty, and lack of confidence created
almost insurmountable obstacles to the return
of normal economic conditions.
In this troubled period, during which the
Bank of France saw the difficulties of its task
increased by events over which it had no control, it continued to frame its policy in accordance with those traditional principles to which
it once again proclaimed its devotion during
the past year. Desirous above all else to
assure the free play of the gold standard and to
maintain the stability of the franc, the bank
continued the work of monetary reconstruction
begun in 1928, while endeavoring to make no
decision which should be of a nature to disturb
the equilibrium of foreign markets.
The balance of payments.—From December
24, 1931, to December 24, 1932, the gold reserve of the bank rose from $2,684,000,000 to
$3,258,000,000, an increase of $574,000,000.
During the same period the portfolio of foreign
exchange declined by $642,000,000. For the
first time since 1926 the total gold and foreign
exchange holdings of the bank showed a decline;
not very large, it is true, but indicating nevertheless a new orientation of the French balance
of payments, which in the past few years consistently showed a surplus.
To the unfavorable merchandise balance,
which amounted to about $392,000,000, must
be added a very considerable reduction in certain of the favorable invisible items. The deficit in our balance of payments was the result
of several unfavorable factors, and would undoubtedly have been greatly accentuated if the
attractive character of the franc had not kept
i The report, available in French, contains in addition tables showing
the operations of the bank in detail, and remarks concerning personnel,
etc. All amounts of money expressed in francs have been converted into
dollars at par and then expressed in round figures. For earlier reports,
see BULLETIN for March, 1932,1931,1930,1929,1928,1927, etc.
161485—33
4
in the Paris market foreign capital which had
previously taken refuge there. But the maintenance in the French market of a large volume
of liquid funds, which might at any moment be
withdrawn, gives the bank still another reason
for exercising circumspection.
Liquidation of foreign exchange.—Ever since
1928 the bank has wished to liquidate as rapidly
as possible the unduly large volume of foreign
exchange which had been acquired as the result
of exceptional circumstances. The stabilization law, moreover, which was intended to give
the franc a purely metallic basis, obligated us to
hasten as much as possible the final reform of
our balance sheet. We hoped that large scale
international operations would enable us to
absorb automatically the foreign exchanges
deposited in the Paris market, and we wished to
be able to cooperate more fully in that work of
economic and financial restoration of which
the war-torn world stands so greatly in need.
If it had depended upon us, a more serene
international atmosphere would have permitted
the execution of this program.
The continuation and increased severity of the
crisis experienced in 1931 decided us to liquidate
the greater part of our foreign holdings without further delay. These operations were
reflected in the total volume of our foreignexchange holdings. They were conducted in
complete agreement with the foreign banks of
issue, whose cooperation we are happy to acknowledge. In order not to aggravate the
monetary difficulties of the countries involved
in these operations, the bank in all circumstances made use of such technical procedure
as was best suited to carry through the program as outlined. It consistently abstained
from intervention during periods when the exchange markets exhibited signs of nervousness.
You will recall in particular that the bank refrained from disposing of its dollar balances
during the autumn of 1931, when the United
States was forced to meet large withdrawals
of foreign funds. Throughout the past jrear
the bank has shown the same circumspection,
and has the consciousness of having conducted
its operations with a constant regard for international solidarity.
In acting thus, the bank wished to prove
its desire to collaborate, which has never
weakened during these past years. It certainly gave proof of this desire in opening
150
FEDERAL RESERVE BULLETIN
credits for those foreign banks of issue which
requested its assistance. This past year it has
continued to cooperate in aiding the common
task of reconstruction by every means in its
power. In particular, in agreement with the
Bank for International Settlements, the Bank
of England, and the Federal Reserve Bank of
New York, it several times renewed the cred.it
to the Reichsbank, opened in July, 1931, in
which it now participates in the amount of
$21,500,000. The credits which it extended
to the Bank of England jointly with the Federal Reserve Bank of New York and the commercial banks in the city of Paris were repaid
in full on February 1, 1932.
The regime of the gold standard.—The increase of the gold reserve during the past year
raised the reserves against demand liabilities
from 60.57 to 77.65 per cent. Compared with
the legal minimum of 35 per cent, this gives a
margin of 42 points. France to-day holds almost the same proportion of the total world
stock of gold as it did before the war.
This situation may easily be changed by
the ordinary course of events. The shortterm funds which have been invested in France
during the past few years may be withdrawn
again to foreign markets when these shall have
recovered their equilibrium. This exodus of
funds should not cause any anxiety if it indicates a recovery of international commerce and
a resumption of international capital movements, and if it is not accompanied by headlong
speculation and loss of confidence. The strong
and extremely elastic guarantee of the franc
enables us in fact to anticipate without apprehension withdrawals of gold solely as a result
of the normal functioning of the gold-standard
system.
During 1932 the principles constantly upheld by the Bank of France received further
approval from the highest international authorities. The declaration of the American and
French Governments on October, 1931, affirming the identity of their viewpoints; the report
of the Gold Delegation of the League of
Nations, giving the. result of the studies which
they had pursued for almost three years; the
resolution which the Administrative Council
of the Bank for International Settlements
adopted unanimously on July 11, last—in all
these statements the necessity for reestablishing a monetary system on the basis of gold has
been clearly recognized.
The bank has tried to make its decisions in
accordance with this principle, which has lost
MARCH, 1933
nothing of its practical value and which, as
experience has proved, corresponds to realities.
The free movement of merchandise and of
funds.—In the economic sphere, a steady process
of liquidation was carried on. But this voluntary effort at recovery was constantly offset by
artificial intervention which, intended to lessen
the effects of the crisis, in reality only delayed
its ending. Although there is no more urgent
task than that of assuring the free movement
of merchandise and of funds, every country
has had recourse to measures of tariff protection
which have sometimes amounted to actual
prohibition of imports; many countries in their
desire to retain the appearance of currency
stability have adopted exchange regulations
which created new obstacles to the normal
functioning of international trade.
The progressive abolition of these various
obstacles is the first condition for the reestablishment of confidence. Every isolated attempt, however, is doomed to failure. On the
eve of a conference at which economic and
financial questions which concern all nations
must be discussed, it seems more essential
than ever to remember that the remedies for
our existing difficulties can come only through
concerted action by all countries.
The economic situation.—The economic situation of France, although relatively encouraging as compared with that of other countries,
nevertheless shows evidence of the crisis from
which no country has been spared. Un.doubtedly the harmonious balance of industrial
and agricultural activity and the qualities of
moderation and thrift which are characteristic
of all classes of society saved France from such
disasters as have befallen even those countries
which formerly were most prosperous. However unemployment may have been increased
in our great industrial centers, it has by no
means reached such proportions here as it has
abroad; and even if exporting industries are
sorely tried by the progressive closing of
foreign markets, the domestic market is still
able to absorb a considerable part of French
production.
These results were obtained only through a
strenuous process of adaptation in private
industry that could hardly continue indefinitely.
Measures of protection, organizations intended
to give artificial support to prices of agricultural products, and tariff regulations undoubtedly prevented an unduly sharp recession in
the domestic market. The administrative
measures by which French producers have
MARCH, 1933
FEDERAL RESERVE BULLETIN
been protected, however, afford only temporary relief to existing difficulties. They do not
settle any of the problems which France will
have to solve when a recovery of activity
abroad shall make it necessary for her to meet
once more the stress of international competition.
Financial situation.—The recession of economic activity inevitably influenced a financial
situation already prejudiced by the constant
increase of public expenditures. The year 1930
was marked by the appearance of a budget
deficit which has steadily increased. In spite
of the energetic effort which France has made
during these years, the situation of the budget
and the difficult position of the Treasury—
reflected in the rapid growth of the floating
debt—once more urgently requires the adoption
of a program of financial reform. The bank
has no doubt that the country will accept the
reforms which are imposed in order to reestablish budget equilibrium. It refuses to admit
that difficulties of a financial character can
compromise a monetary stability so dearly
won and so strongly guaranteed. In the field
intrusted to it, the bank is resolved to agree
to no measure whatsoever that could again
endanger the stability of the franc.
The discount portfolio.—Throughout the
year the discount portfolio of the bank decreased
rapidly. From December 24, 1931, to December 24, 1932, it declined from $306,000,000
to $137,000,000. This considerable decline is
not due to any restrictive measures. It is the
result of the economic crisis and especially of
the extreme abundance of available funds in
the market.
This year, as heretofore, we were exceedingly
liberal in granting credit. All securities presented for discount were accepted, provided
they offered the guarantee required by the
statutes of the bank. We endeavored especially to give direct aid to industry, commerce,
and agriculture during this difficult period. In
order to enable producers of wheat to proceed
to a gradual and orderly marketing of the recent
harvest, we considerably facilitated the discounting of their warrants by agreeing to
renewals at maturity when necessary. We
shall continue to do this, requiring only that
the final liquidation of these credits shall not be
carried beyond the close of the present season.
Aggregate credits accorded directly by the
bank to its clientele of manufacturers and" merchants declined only slightly, as a result of the
decline in business transactions. The decline
in our portfolio is due chiefly to the enormous
151
reduction in rediscounts. The banks, being
abundantly supplied with funds through the
great volume of deposits, made only small
demand for credit at the central bank. The
reduction in their obligations at the Bank of
France—depriving it for the time being of its
control over the market—reflects an extremely
easy monetary position, which will assist the
restoration of economic activity when the time
is ripe. It also marks the end of the banking
crisis which developed during 1931. During
1932 a small number of banking houses which
had a discount account on our books were compelled to close their doors, and our intervention
easily checked the disturbance which might
otherwise have resulted from these isolated
failures.
Our discount rate, which was raised from 2
to 2}{ per cent on October 9, 1931, has not
been changed since that time.
During the past year the foreign markets
were also characterized by very easy money
conditions. The Federal Reserve Bank of
New York, which in October, 1931, was compelled to take measures of defense, was able to
reduce its discount rate from 3}i to 3 per cent
on February 26 and to 2}i per cent on June 24.
The Bank of England also made several reductions, which resulted in reducing its discount
rate from 6 to 2 per cent. With the exception
of the National Bank of Switzerland, which
kept its rate unchanged at 2 per cent, the Bank
of France maintained during 1932 the lowest
average discount rate of any central bank.
The volume of demand liabilities.—For the
first time since 1928 the total demand liabilities
of the bank declined from the beginning to the
end of the year. In round numbers they
amounted to $2,803,000,000 on June 25, 1928;
to $3,450,000,000 at the end of 1929; to
$3,959,000,000 at the end of 1930; and to
$4,430,000,000 at the end of 1931. On December 24, last, they stood at slightly more than
$4,195,000,000, a reduction of about $235,000,000.
This total includes not only notes in circulation and deposit accounts of banks and individuals, but also deposits of the Treasury and
the Caisse autonome.
The deposit accounts of public departments
declined by $140,000,000. These withdrawals
resulted in placing new funds in the hands of the
public. They were not, however, large enough
to balance the absorption of funds reflected in
the decline of the discount portfolio and the
slight falling off in the reserves of gold and
foreign exchange.
152
FEDERAL RESERVE BULLETIN
The total accounts opened on behalf of banks
and individuals declined by $63,000,000 and the
note circulation by $32,000,000. After haying
declined considerably during the first eight
months of the year, the total volume of notes
held by the public rose somewhat in September,
as a result not only of seasonal demands but
also of increased hoarding. This increase is
reflected in large withdrawals of notes in
denominations of 500 francs ($19.60) and 1,000
francs ($39.20).
Conclusion.—In the work of recovery, in
which the entire nation is in duty bound to
cooperate, the r61e of the bank is determined
in advance by a long tradition of service to the
public welfare. Instead of the illusions of
factitious prosperity, it prefers the reality of
equilibrium to which, more than any other
country, France may hope to aspire. To the
artificial measures which can bring only temporary appeasement, the bank intends to oppose the truths which experience has verified.
In the face of great uncertainties, the bank
continues to affirm its faith in the destiny of
this country. We do not doubt that the will
of the nation can surmount the existing difficulties. We find our reasons for confidence
above all in the spirit of sacrifice, in the virtues of work and of saving, which France has
exemplified so magnificently throughout its
history.
BALANCE SHEET OP THE BANK OF FRANCE AS OF DECEMBER 24,
Resources
Gold reserve (coin and bullion)
Silver and copper coins
...
Funds available on demand abroad
Foreign bills:
Negotiable
Other..
Domestic bills:
Negotiable
Other
_
Advances against gold coin and bullion
Advances against securities
_
Postal current accounts
Negotiable bills of the Caisse autonome d'amortissement (convention of June 23, 1928, and
Dec. 7,1931)..
Loans to the Government without interest (law
of June 9, 1857: convention of Mar. 29,1878;
law of June 13,1878, extended; laws of Nov.
17,1897, Dec. 29,1911, Dec. 20,1918, and June
25, 1928)
__.
._.
Rentes earmarked for special purposes
Bank buildings and equipment-._
Miscellaneous resources.
Total.
1
Francs (in
thousands)
Dollars *
(in thousands)
83,128,601 3,258,641
53,681
1,369,422
115,033
2,934,520
1,287,416
261,651
50,467
10, 257
32,000
3,223, 501
1,516,023
2, 519,267
642,723
1,254
126,361
59,428
98,755
25,195
6,802,408
266, 654
3,200,000
112,981
220,576
2,095,277
125,440
4,429
8,647
82,135
109,346,365
4,286,378
1932
Liabilities
Demand liabilities:
Notes in circulation..
Current account of the treasury
Current account of the Caisse autonome
d'amortissement
Other current accounts and deposits
Other demand liabilities
Capital
Surplus (laws of June 9,1857, and Nov. 17,1897).
Reserve invested in legal securities (law of May
17, 1834; decrees of Apr. 27 and May 2, 1848;
law of June 9, 1857)
Depreciation reserve (real estate)
Profit and loss:
Gross dividends: 2119.05 francs (net 100
francs)
Carried forward
Miscellaneous liabilities
Total
Francs (in Dollars»
thouthousands) (in
sands)
82,720,927
166,106
3,242,660
6,511
2,134,717
21,798,846
228,373
182, 500
272,696
83,681
854,515
8,952
7,154
10,690
22,106
4,000
867
157
21,726
24,958
1,769,410
852
978
69,361
109,346,365
4,286,378
Total demand liabilities, 107,048,969,594 francs ($4,196,319,608).
Ratio of gold reserve to demand liabilities, 77.65 per cent.
Conversion at par: 1 franc=$0.0392.
* For secondfhalf year. Gross dividend for first half year, 119.05 francs (net 100 francs).
MARCH, 1933
153
FEDEKAL KESERVE BULLETIN
MABCH, 1933
FINANCIAL STATISTICS FOR FOREIGN COUNTRIES
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
[In millions of dollars]
End of month
Total
(49 countries)
Europe
United
States»
Canada
Total (27
countries)
Austria
Denmark England
Belgium Bulgaria
France
1931—December...
11,289
4,051
6,189
354
1932—January
February
March
April
May
June
July
August
SeptemberOctober
November...
December...
11,340
11,418
11,499
11,515
11,416
11,348
11,420
11,562
11,694
v 11,789
v 11,859
v11,892
4,009
3,947
6,300
6,444
6,484
6,531
6,665
6,841
6,871
6,897
6,923
6,944
6,949
6,826
352
351
349
351
353
357
365
364
359
363
362
361
588
588
588
588
608
663
670
676
678
678
678
2,808
2,942
3,012
3,052
3,115
3,218
3,221
3,224
3,241
3,250
3,267
3,254
1933—January
February
v 11,915
*6,816
362
366
602
3,221
v 3,176
3,956
3,717
3,466
3,522
3,639
3,748
3,819
3,885
4,045
4,074
*3,808
39
Germany
234
688
221
209
205
206
198
183
183
190
195
197
192
196
Europe—Continued
End of month
Greece Hungary
Italy
Nether- Norway
Poland
lands
Portu- Ruma- Spain
Sweden Switzernia
gal
land
u. s. s.
R.
other
Yugo- 6counslavia
tries
1931—December.
296
357
434
453
328
26
1932—January...
February..
March
April
May
June
July
August
September.
October
November.
December.
296
296
296
296
297
298
300
302
305
306
306
307
351
353
354
364
384
394
408
415
416
416
415
415
434
434
434
434
435
435
435
435
435
436
436
436
472
482
471
471
493
503
509
510
509
509
493
477
329
329
330
331
335
349
357
368
«368
'368
»368
3 368
26
26
26
27
30
31
30
28
28
28
28
29
477
>368
1933—January...
413
Asia and Oceania
Latin America
End of month
Total
Co(10 Argencoun- tina Chile lombia
tries)
Peru
Total
Uru- 5 other (7
guay countries countries)
1931—December...
355
253
11
1932—January
February
March
April
May.
June,
July
August
September...
October
November...
December...
350
347
347
343
346
347
348
348
346
*341
*342
252
249
249
249
249
249
249
249
249
249
249
249
13
14
15
13
13
13
14
14
12
P12
Ml
J>341
249
1933—January
P342
P12
532
534
535
534
534
536
524
523
523
524
523
520
Africa
New
AusAlge- Egypt South
tra- India Japan Java Zea- Siam Turkey
ria
Africa
land
lia
162
234
32
162
162
162
162
52 ' 162
52
162
162
162
162
162
162
162
215
215
214
214
214
214
214
214
214
214
213
212
32
32
31
30
30
30
28
27
27
27
27 I
25
42
212
25
162
40
37
31
34
35
38
34
35
32
35
34
35
»28
38
v Preliminary.
* Differences between these figures and those shown elsewhere in the BULLETIN for total monetary gold stock of the United States are due to the
exclusion
from the former of gold coin in circulation.
2
The August, 1932, figure is carried forward for subsequent months as no statement has been issued by the State bank of the CJ. S. S. R. since
that time.
NOTES.—Figures for 34 countries are as of final day of month; for the other 15 countries—including England, France, and Netherlands—they are
as of last report date of month. See BULLETIN for May, 1932, p. 315. Since the note in the BULLETIN for May, 1932, was prepared, figures for the
Banque Centrale de la RSpublique de Turquie and for the Government of Siam have been added to the table. The figures for Turkey relate to the
last Thursday of the month.
The 6 European countries and 5 Latin American countries for which figures are not shown separately are Albania, Danzig, Estonia, Finland,
Latvia, and Lithuania; Bolivia, Brazil, Ecuador, Guatemala, and Mexico. None of these countries has had gold reserves during this period in excess
of $10,000,000.
For back figures—and for additional details relating to this table—see BULLETIN for May, 1932.
154
FEDERAL RESERVE BULLETIN
MARCH, 1933
GOLD PRODUCTION
[In thousands of dollars]
Month
1930-Total.
Total
South
Africa
Rhodesia
West
Africa
430,725
326,032
221,526
11,476
43,454
13,813
3,281
9,553
7,531
6,785
28,734
28,680
29,290
29,275
30,387
29,287
29,352
18,594
18,959
18,859
18,981
19,525
18,673
18,809
926
947
918
905
936
941
1,041
4,995
=====
447
451
462
486
473
477
498
3,618
38,207
38,153
38,763
38,748
39,860
38,760
340
342
353
397
437
408
417
4,725
4,711
4,718
5,005
4,933
4,906
4,974
1,103
814
1,228
1,074
1,041
914
877
354
353
256
452
389
312
1,092
933
1,229
916
1,240
1,321
1,181
663
668
654
692
679
667
664
490
500
516
562
673
590
579
11,193
5,524
4,448
=====
405
381
424
391
55,458
12,866
4,016
12,134
8,109
6,815
4,834
4,670
5,285
5,093
5,551
5,592
5,124
5,428
5,386
5,231
5,220
5,742
1,106
948
862
1,057
1,026
924
1,138
1,122
1,091
v 1,091
p 1,091
450
386
404
380
"447
405
455
524
456
455
415
353
1,032
1,063
1,131
1,164
1,234
1,172
1,244
1,221
1,292
1,216
1,376
p 1,376
628
657
741
671
653
647
692
696
702
727
715
534
525
545
690
567
603
585
588
559
547
556
581
63,156 p 12,417
5,132
14,521
1931—June
July
August
September.
October
November..
December—
Total (12 mos.)
1932—January
February..
March
April
May
June
July
August
September .
October
November.
December—
Production reported monthly
Estimated
world
production
Africa
459,104
345,426
«39,892
38,889
40,664
o29,978
28,975
30,750
30,381
« 31,316
• 31,171
31,259
32,054
31,375
31,417
P 31,512
P 31,956
40,296
c 41, 231
•41,085
41,174
41,969
41, 290
41,332
P 41,426
v 41,870
Total (12 mos.)
491,120 v372,143
19,587
18,935
19,877
19,593
19,970
19,871
20,268
20,475
19,888
20,157
20,190
20,118
921
956
996
976
1,011
981
1,019
1,041
1,044
997
p 1,080
238,931
v 12,001
977
453
484
466
481
c482
546
510
509
515
526
539
Belgian Canada Mexico
Congo
409
U26
U39
1455
U19
1433
1424
1406
i 5,014
960
Colombia
Australia
Japan
India
6,782
Preliminary.
« Corrected.
i Beginning with May, 1933, the monthly figures for Belgian Congo represent the actual production of the Kilo-Moto mines plus an estimate
of the production of other mines, the figures for which have not yet become available.
NOTE.—The annual figures for total world production in 1930 and 1931 are those published in the annual report of the Director of the Mint for
1932. The difference between the 1931 figure and the aggregate of production reported monthly for that year is $113,679,000, or $9,473,000 on a monthly
average basis. The monthly estimates of world production in 1931 represent the sum of this average difference and the figures actually reported
monthly. For 1932 this average difference, more than two-fifths of which represents United States production, is increased by 4.7 per cent—the
ratio of increase of United States production in 1932 according to the preliminary estimate of the Director of the Mint.
The figures reported monthly are not in every instance complete for the area indicated. Those for West Africa represent the output of the
Gold Coast and Sierra Leone; those for Australia, total output with the exception of Tasmania and Northern Territory; those for Japan, the output
of the leading mines; and those for India, the output of the Mysore State. Official figures for all mines in Colombia are available on a monthly
basis only for the year 1932. Monthly output in Colombia previous to 1932 has been estimated by adding to the official monthly figures for the
Department of Antioquia the figure $28,000, representing the average monthly output of the rest of Colombia in 1931.
For annual figures of world production of gold extending back to 1873 see the annual report of the Director of the Mint for 1932, p. 150.
GOLD MOVEMENTS
[In thousands of dollars]
United States
Net imports from—
Month
1931—September
October
November
December
Total (12mos.).
1932—January
February
March
April
May
June
July
August
September
October
November
December
Total
net imports
» Preliminary.
France
20,561
-337,685
89,436
56,858
23 -24,087
685 -324,500
333
-10
4,249 -15,150
145,325
6,797 -344,514
-72,950
-90,567
-24,671
-30,239
-195,514
-206,047
-3,437
6,103
27,897
20,613
21,740
100,859
Total (12 mos.). -446,213
1933—January
February?
England
128,465
14,398
Germany
Belgium
All
China
Nether- Switzer- Can- Mexico Argen- Co- British and Japan other
countina lombia India Hong
ada
lands land
tries
Kong
2 -4,172
-349 8,837 4,260
2
-831 -9,678 -35,904 -17,617 5,666 -1,239
-57
-394
989
-115
-515 7,408
- 6 2 -5,861 -9,857 -1,270 4,513 1,344
25,770
15,474
267
1,103
950
2,997
3,329
1,510
816
1,284
2,273
2,843
1,345
893
744
9,110
1,157
2,683
53,585 -441,649 -13,356 -82,571 -96,586 -118,273 64,574 20,087
12,991
29,490
-3,554
2,042
36,026 -15,583 -50,327 -19,768 81,136 22,267 141,263 15,116
-3,199 -83,783
- 7 1 -12,553 -6,257 -1,759 4,154
-235 -98,203
-495 -17,859 -8,672
-254 8,406
- 2 3 -37,532
2 -6,341
- 6 7,216
-669 -18,707
-1,922 -24,527 -3,286
-115 7,267
-7,047 -63,216 -9,710 -19,930 -58,473 -53,554 4,699
-1,910 -111,411
-116 -26,250 -23,168 -62,603 5,424
1,405 -21,513
-225 4,573
6,093 -17,950
- 8 5,257
~"l,"021
5,868
50
219 3,904
"~5,~543
320
506
1,251
75
2,381
25
5,622
1,376
2,685
8,082
7,546
51,928
16,357
10
50, 248
2,954
3,095
16
1,067
15,123
-1,743
-1,564
5,274
3,992
634
2,948
3
7
4,895
3,165
13
42
-1
22,501
75,932
68,285
3,584
2,209
941
4,837
8,064 34,240 199,286 31,322
4,677
2,575
70
175
45
52
28
94
43
3,596
5,533
1,644
623
240
467
2,855
6,068
4,773
4,697
167
819
2,948
2,402
3,791
4,866
3,524
4,783
4,205
3,600
2,964
4,974
3,240 26,597 39,043
52 15,193
8,237
5,612
3,610
9,969
19,441
2,013
2,441
5,172
4,197
3,362
3,124
2,542
1,795
3,313
3,967
3,800
3,133
3,064
4,122
2,039
1,933
3,322
3,353
49,719 36,383
3,729
2,042
2,466
155
FEDERAL RESERVE BULLETIN
M A R C H , 1933
GOLD
MOVEMENTS—Continued
[In thousands of dollars]
Great Britain
Net imports from—
Month
Total
net imports
1931—September..
October
November..
December..
-9,302
15,775
-45,386
-12,489
Total (12 mos.) _ -143,729
1932—January
February...
March
April
May
June
July
August
September..
October
November..
December..
United
States
-843
1,122
-4,637
-7,548
Total(12mos.)-
81,211
-43,260
17,862
-819
-6,769
-63,524
-25,941
-13,401 -319,989
-4,129
-7,320
-6,182
2,256
-119
-2,691
1,207
26,148
7,541
16,973
35,019
15,897
22,675
-1,671
-4,259
1,296
5,204
-6,887
5,814
-284
13,857 -1,634
-29, 582 -58, 561
1933—January
February p.
France
Germany
Netherlands
-21,353
-9,462
-14,101
-4,536
-18,397
33,754 -37,050 -124,101
-60,836
-43
-8
-91
-219
-119
-517'
-64,955
-52,712
-40,858
-17,795
-10,843
-9,035
-11,361
-20,269
-27,521
-24,895
-13,519
-3,277
-50,643 -297,040
-48, 314
-7,962
Belgium
South
Africa,
RhoAustraSwitzer- South British Straits
desia,
lia
land
America India Settlements
West
Africa
-2,109
-2,867
-76
-58
3
71
-18
14
4
45
5
-20
370
-29
-10,189
-2,502
311 -16,896
-71,376
-634
-438
-17,471
-7,258
-11
28
811
1,370
733
682
8,353
26,597
22,835
765
444
267
502
16
572
1,501
90
20,554
21,681
16,052
20,187
1,197
1,093
1,754
755
29,446
33,260
=====
1,555
371
1,750
1,083
915
794
9,661
175
1,505
870
830
854
236,921
3,904
17,062
20,884
20,616
24,893
18,965
26,246
19,351
19,712
25,866
18,378
20,006
23,326
352
1,426
887
420
1,734
760
3,207
5,010
1,326
1,853
831
602
20,363 255,305
18,408
63,080
11,280
-247
-3,723
-7,382
-16
-214
-1,081
-753
-75
-214
-120
-88
-108
105 45,986
2,226 30,661
1,002 24,340
17,393
406 11,565
12,812
500 14,204
300 14,279
187 13,009
189 11,973
527 10,488
181 13,684
746
781
602
-14,021
5,623 220,394
10,780
9,495
587
622
-134
-756
-53
-53
- 2 , 571
-2,767
-4,778
-4,015
-85
-104
-476
-1,104
-76
376
1931—September.
October
November _
DecemberTotal (12
mos.)
1932—January....
February..
March
April
May
June
July
August
September
October
November.
December.
Total (12
mos.)
1933—January
418
209
273,734 243,956
122,372 99,876
3,164
13,881
England
902
21,738
40,447
26,132
Ger- Nethermany lands
793
196
16, 530
26,664
Net imports from—
Net imports from—
Total
net
imports United
772
2,122
829
584
943
710
Germany
France
Month
All
other
countries
Switzerland
-2
- 1 0 -1,818
-153
6,060 -3,553
91 22,741 -42,572
1 -232 -22,386
All
other
countries
Total
net
imports
United
States
England
547
120
49
542
1,137 -16,947
5,685 -31,473
1,789 -41,968
875
7,203
France
Netherlands
Switzerland
U.S.
S. R.
-5,558 -11,859
-5,951 -10,965 -20,620 5,183
18 -16,455 -25,594
56
103
150
All
other
countries
78
-4
17
728,176 328,130 312,561 100,050 18,775 -81,207
149,867 -247,950 -36,160 -35,221 -102,019 -55,142 -63,866 58,932 -14, 475
74,007 65,062 10, 735 - 4 6 6,755
- 4 9,601
184,171 82,580 90,947
147,604 71, 279 49,028 13,889 12,561
60,340 38,080 23,888
- 1 5 2,019
17, 734 17,174 14, 232 2,582 1,999
168,000 152,072
7,541 5,737 4,601
31,954 16, 746 12, 472
-5
483
42,940 24,149 16, 241 5,382
-17
9,638
4,424 3,918 1,448
-625
32,695 11,927 19, 995
329
565
33,498
241 26,003 6,122
672
25,494 -10,634 34, 479
2 -3,138
1,401
2,639 -5,262
830 -13,647
-4,061 -8,319
3,133
17,135
6,281 -7,139
3,259 -13, 718
4,189
- 2 , 447
8,552
222
5,560
148
2,314
645
-3,293
-9,899
-1,592
17
428
-1,119
-8,234
-1,001
-369
249
-270
-186
4,306
828,072 468,052 309,984 37,889 37,547 -17,668
-7,732
- 2 7 , 282
200 -3,814 -1,126
145
4,423
-37,399 -35,361
2,558
i $29,233,000 imported by France from Spain in July,
a $21,292,000 exported by France to Belgium.
293
367
4
278
16
71
71
247
49 -5,647
- 2 -16,224
170 -2,776 5,152
- 1 4 -5,398 -8,328
42 5,198
17 -7,539
8
67 10,352
3,399
5 -5,800 -7,691
554
—42 - 4 , 753 -5,435
4,622
2
13 l,:
5,410
-2
8 3,456
5,461
29
33
41
6,275
-367 -6,169
2,584
24
17 -3,331
-250 -38,170 -24,455 -7,91546,
-14
v Preliminary figures.
NOTE—Germany—-The aggregates of the official monthly figures for gold imports in 1932 differ somewhat from the revised totals published
for the year as a whole. Since German figures for individual countries are subject to semiannual revision, those given the January, 1933, are preliminary in character. Figures for total net imports are final.
156
FEDERAL RESERVE BULLETIN
MARCH,
1933
GOLD MOVEMENTS—Continued
[In thousands of dollars]
Netherlands
Net imports from—
Month
Total net
imports
1931—September.
October
November.
December..
Total (12 mos.)--—
1932—January
February..
March
April
May
June
July
August.
September .
October
November.
December..
Total (12 mos.) _
1933—January
United
States
England
France
Germany Belgium
Poland
19,020
30,598
36,551
19,567
16,413
21,551
1,449
15,387
14,781
7,982
8,849
-86
-17,572
-1,113
-2,325
-113
17,455
4,717
11,672
-55
-233
-35
-58
-139
-252
-794
198.619
39,413
117,591
-21,024
56,059
-966
7,130
2,608
-1,886
7,737
58,256
54,107
4,983
7,204
-13, 797
—6,230
-4,857
894
7,747
8,810
6,342
2,799
55,317
47,324
-6,367
-1,916
- 3 , 765
-9,668
3,100
5,446
3,870
867
5,470
8,397
5,565
8,715
1,198
1,252
1,939
4,251
- 3 , 521
-9,900
-11,028
-771
-3,258
-1,786
-276
-334
-1,708
52
-304
320
34
8,445
7,429
9,763
5,376
-1,280
-3,496
-61
-3,085
3,745
116,149
106,623
50,070
-34,009
1,8
-14,101
14,069
-837
13,889
-107
38
754
-1,428
-365
4,553
4,548
-713
-760
-5,242
-26
1,759
- 5 , 729
-1,313
963
-790
-1,628
-511
- 1 , 791
-3,415
-3,385
-482
-281
-923
-217
-188
-20
—516
-354
-171
-2,325
-3,466
-5,849
-847
-579
-402
42
-537
-1,134
1,166
295
476
366
785
379
941
3,212
1,994
1,006
3,030
2,773
632
81
-77
147
107
24
-52
2 -2,222
* -5,852
-14
-52
26,886
-12,727
-13,630
-16,137
16,423
2,009
958
-976
-1,100
2,199
-7,346
. =
-323
-462
-821
British India
Net imports from—
Total (12 mos.;
1932—January
February
March
April
May
June
July
August
September
October
November
December..... _.
Total (12 mosv
1933—January
Total
Total
net imnet imports United EngGer- South NethAll
er- other ports United
States
States land France many Africa lands
25,505
94,339
43,572
19,687
1,722
32,919 5,346
3,224, 9,805
254 18,364
222,751
36,422 41,301
5,653
17,658
4,698
2,538
46,051
80,872
14,993
1,503
-604
-3,38£
-1,39f
1,202
2,067
1,411
82
65
41,034
70,247
9,779
81
-361
-50
—7
5
175
23
16,577
»7,182
8,270 44,196 - 1 9
229 -26,126
4,519 25,604
12 -24,217
408
886 - 7 5
15 -45,715
203 "~69
19,317 39,684 72,760
England
-101
-762
- 8 , 3 2 4 -10,180
- 3 , 2 7 9 -17,626
- 5 , 2 8 6 -39,682
13,220 -95,875 -17,665 -72,691
Increase Increase
or
de- ordeGold
produc- (-)in (-)in
All tion in govern- private
other India* ment holdings
reserves in India»
is India
1,035
-7,622
-3,311
-747
-5,52:
•
1,300
1,972
10
5,725
5,423 5,731
5,733 - 3 , 9 5 2 2,769
116
- 9 5 -165
116
1,718 - 5 2 .
1,734
3,554 -85»
11'
3,734 - 5 1
38
90
718
154
-540 - 3 4
82 -3,087 - 1 0 2
85 -2,347 - 6 7
320 - 1 1 1
96
169,786
124,354 15,342
4,65*
123
7,418 7,8
2,393
-77
All other
3,824
729
Net imports from—
1931—September
October
November
December
British
India
-69
-162
-135
Switzerland
Month
Switzerland
290
76
2,308
2,949
5,630
1,507
92
744
453
-280
480
14,996
1,176
13
-707
66
309
286
-209
-87
-260
-277
48
46
55
-24,029
-17,672
-18,670
-11,812
-8,935
-167
-13,227
-374
-16,437
-11,674 - 2 , 7 7 5
-17,20: -5,978
-14,482 - 4 , 8 2 0
-16,662 - 2 , 4 2 0
—24,964 -18,002
-304
-195,765 -38,061 -151,880
1,040 p-12,402
564
675
592
58:
21
718
- 3 5 3 -25,098
359 -23,984
-45,134
6,832
-122,575
535
527
546
592
569
605
586
589
561
548
557
583
-23,512
-17,143
-18,117
86 - l l , 3 0 S
-8,365
-12,622
-15,851
-11,085
-16,674
-13,934
-16,105
—24,381
6,798
12* -189,095
P583
p-11,819
:
253
-21,419
43
-17,353
209
-18,788
••-374
-11,229
72
-9,007
95
-13,155
-14,575 • - 1 , 4 8 8
-920
-7,979
-9,835 '-1,388
-652
-9,010
-997
-13,244
-676
-6,286
-5,823
i1 $4,020,000 imported by Netherlands from Dutch East Indies.
Exported from Netherlands to Czechoslovakia in August, $2,199,000; in September, $5,847,000.
» $7,293,000 imported by Switzerland from Norway.
• Reported monthly production of the Mysore State plus $67,000 representing the average monthly production of the rest of India in 1931.
• Figures derived from preceding columns. Net imports plus production minus increase in Government reserves in India.
• $7,575,000 was exported from India to Netherlands.
i $1,891,000 was exported from India to Netherlands; $2,173,000 to France.
• $1,777,000 was exported from India to Netherlands.
• $1,640,000 was exported from India to Netherlands.
» Preliminary.
• Revised
NOTES.—Netherlands—The aggregates of the official monthlyfiguresfor gold exported to Germany and gold imported from the world in
1933 differ somewhat from the revised totals published for the year as a whole.
British India.—From January, through June, 1932,figuresfor net imports from individual countries are preliminary and subject to revision.
Figures for tota ]net imports, gold production, and increase in government and private holdings arefinalunless otherwise indicated.
157
FEDERAL RESERVE BULLETIN
MARCH, 1933
GOVERNMENT NOTE ISSUES AND RESERVES
[Figures are for last report date of month]
1932
1933
Argentine Conversion Office (millions of
gold pesos):
Gold
Notes issued *
«
Irish Currency Commission (thousands of
pounds sterling):
Legal tender note f u n d British legal tender and bank
balances
British securities
Notes issued
Consolidated bank notes *—
Issued
Deemed such under sec. 60 (4) of
currency act, 1927
1932
1933
Jan.
Dec.
Nov.
Jan.
257
*588
257
589
257
583
260
547
686
727
70
867
6,388 6,987 6,269 6,725
7,256 7,673 6,996 6,795
4,617 4,602 4,589 4,350
1,363 1,376 1,391 1,631
Jan.
Canadian Minister of Finance (millions
of Canadian dollars):
Gold reserve against Dominion notes..
72
Advances to banks under finance a c t . .
47
Dominion n o t e s Issued _
. .
__
180
Outside chartered bank holdings..
26
Indian Government (millions of rupees):
Gold standard reserveGold
188
Foreign exchange
345
Paper currency reserve255
Gold
Silver coin and bullion
1,095
Other assets
393
Notes issued
... . .
1,743
Dec.
Nov.
Jan.
72
57
73
65
67
45
191
24
199
28
170
28
276
257
326
207
395
138
187
1,107
455
1,748
118
1,130
509
1,756
48
1,158
586
1,792
* Includes a small quantity of subsidiary coin.
* The figures of consolidated bank notes issued represent daily averages for the 4 weeks ended Jan. 9,1933, Dec. 10, Nov. 12, and Jan. 7,1932.
The figures for notes deemed to be consolidated bank notes are as of the close of business on these dates.
v Preliminary.
BANK FOR INTERNATIONAL SETTLEMENTS
[In thousands of dollars converted from Swiss francs at par; 1 Swiss franc=$0.1930]
1932
1933
Jan. 31 Dec. 31 Jan. 31
Jan. 31 Dec. 31 Jan. 31
Cash on hand and on current account with
banks
Demand funds at interest
Rediscountable bills and acceptances (at
cost):
Commercial bills and bankers' acceptances
Treasury bills
TotalTime funds at interest: Not exceeding 3
months
2,366
17,113
2,905
19,397
78,458
19,370
98,522
97,787
97,828
46,549
44,680
45,057
7,726
9,206
10,438
11,455
2,964
11,501
120
251
9,204
120
Total
Other resources-
31,517
1,402
31,467
1,357
197,468
21,265
1161
21,425
2,011
197,593,199,
i Composed entirely of investments exceeding 1 year.
3,343
30,295
64,995
32,792
64,622
Sundry bills and investments:
Maturing within 3 m o n t h s Treasury bills
Sundry investments
Between 3 and 6 m o n t h s Treasury bills.
Sundry investments
Over 6 months
Total resources
1932
1933
Liabilities
Resources
Short-term deposits:
Central banks for own account—
Demand..
_
TimeNot exceeding 3 months. TotalCentral banks for account of others—
Demand
Time—Not exceeding 3 months
TotalOther depositorsDemand
Time—Not exceeding 3 months..
Long-term deposits:
Annuity trust account
German Government deposit—
French Government guaranty fundTotal
Capital paid in
Reserves:
Legal reserve fund
Dividend reserve fund.
General reserve fund...
Other liabilities
Total liabilities..
96,005
97,912
60,897
6,344
4,597
30,768
102,350
102,509
91,665
2,385
2,646
14,995
6,854
2,646
21,849
83
1,204
19
1,203
1,144
29,677
14,839
13, 249
29,677
14,839
13,249
29,677
14,839
13,249
57,765
24,125
57,765
24,125
57,765
20,941
254
519
1,038
7,745
254
519
1,038
7,513
108
211
422
5,854
197,468
197,593
199,960
2,385
:
158
FEDERAL RESERVE BULLETIN
MARCH, 1933
CENTRAL BANKS
[For explanation of tables on this page, see BULLETIN for February, 1931, pp. 81-83]
Resources of banking department
Bank of England
Gold (in
issue
department) *
Cash reserves
Coin
Millions of pounds sterling:
1931—Dec. 30
1932—Jan. 27
Feb. 24
Mar. 30
Apr. 27
May 25
June 29
July 27
Aug. 31
Sept. 28
Oct. 26
Nov. 30
Dec. 28
1933—Jan. 25
Feb. 22 v
12a 7
120.8
120.8
120.8
120.8
125.0
136.1
137.7
138.9
139.4
139.4
139.4
119.8
123.6
142.2
.9
1.0
1.0
1.0
.8
.8
.7
Notes
Liabilities of banking department
Discounts
Securiand
advances
27.3
12.9
11.5
11.7
11.5
12.2
14.9
15.3
12.2
12.1
11.6
11.9
18.5
11.6
11.9
31.6
49.9
49.4
35.3
43.0
45.8
48.1
43.4
48.6
54.6
56.0
55.6
23.6
45.4
61.0
133.0
82.5
71.0
86.8
79.4
93.2
93.5
92.5
92.2
88.0
85.4
87.1
120.1
107.9
104.0
Note
circulation
Deposits
Bankers'
364.2
345.9
346.4
360.5
352.8
354.2
363.1
369.3
365.3
359.8
358.4
358.8
371.2
353.2
356.2
126.4
74.3
67.9
54.6
58.3
77.5
86.6
88.2
79.5
80.6
77.3
90.5
102.4
103.4
98.3
Resources
Bank of France
Gold
Millions of francs:
1931—Dec. 30—
1932—Jan. 29
Feb. 26—
Mar. 25—
Apr. 29—
May 27—
June 24—
July 29—
Aug. 26...
Sept. 30...
Oct. 28—.
Nov. 25__.
Dec. 30—
1933—Jan. 27—
Feb. 24 P.
71,625
75,059
76,832
77,862
79,470
82,100
82,168
82,239
82,681
82,909
83,342
83,017
82,167
81,016
7,389
6,555
5,544
4,820
4,690
4,160
3,929
3,905
3,467
2,604
3,637
3,266
3,438
3,142
3,303
7.7
15.3
14.1
27.2
23.4
23.6
18.0
11.2
20.7
23.4
25.4
10.1
8.9
11.7
26.2
2,730
2,744
2,707
2,716
2,735
2,700
2,715
2,747
2,761
2,783
2,764
2,500
2,515
2,537
2,580
Negotiable
securities'
7,157
6,882
6,881
6,881
6,881
6,626
6,621
6,621
6,621
6,621
6,621
6,802
6,680
6,647
Other
8,545
8,278
8,329
8,371
8,697
8,684
8,634
8,994
8,878
9,686
9,145
9,008
9,196
9,172
()
Note
circulation
Reserves
Gold
Millions of reichmarks:
1931—Dec. 31
1932—Jan. 30
Feb. 29
Mar. 31-.
Apr. 30
May 31
June 30
July 30.
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 31
1933—Jan. 31
Feb. 28 v
984
948
928
879
859
863
832
766
768
796
817
827
806
822
769
Foreign
exchange
172
145
149
142
131
129
130
128
157
133
123
110
114
101
152
40.3
38.2
32.2
34.4
35.3
32.9
34.7
34.6
35.4
33.4
33.6
37.1
33.8
32.5
35.0
85,725
84,723
83,189
81,782
82,774
81,418
80,667
82,118
79,912
82,459
82,205
81,536
85,028
83,314
Deposits
Government
5,898
4,722
3,637
3,526
3,111
3,432
2,881
3,740
3,982
3,010
4,553
2,931
2,311
2,269
2,226
Resources
Reichsbank
Other
Other
liabilities
18.0
18.1
18.2
18.2
17.7
17.8
18.0
18.1
18.2
18.2
17.7
17.8
18.0
18.1
18.2
Liabilities
Foreign Domestic Security
loans
exchange
bills
21, 111
18,805
15,127
12,632
11,800
9,001
6,332
5,482
5,389
4,977
4,984
4,853
4,484
4,434
4,401
Public
Other
22,183
23,552
24,899
24,962
24,827
24,128
24,621
22,033
23,426
21,876
21,229
22,969
20,072
20,474
18,731
1,989
1,910
1,925
1,980
1,953
1,917
2,167
2,025
2,035
2,009
2,071
2,153
2,041
2,074
(3)
Liabilities
Other
Treasury bills
(and Security
bills
loans Securities
checks)
4,144
3,632
3,324
3,258
3,146
2,990
3,100
3,108
3,009
2,991
2,857
2,731
2,806
2,459
2,439
Other
liabili-
245
158
303
290
282
257
261
224
207
242
198
207
176
93
279
161
161
162
362
362
363
364
365
365
362
362
395
398
401
401
Other
assets
1,065
1,098
1,100
1,044
977
1,032
1,038
975
960
940
957
959
1,114
1,097
1,040
Note
circulation
Deposits
4,776
4,407
4,268
4,231
4,128
3,961
3,984
3,967
3,817
3,755
3,620
3,531
3,560
3,338
3,356
755
394
423
578
405
431
473
380
408
451
389
418
540
345
402
Other
liabilities
1,338
1,373
1,318
1,226
1,249
1,262
1,271
1,267
1,279
1,298
1,345
1,314
1,313
1,333
1,343
1
In addition the issue department holds Government and other securities and silver coin as cover for the fiduciary issue, which is fixed by
law at £260,000,000. Since Aug. 1,1931, however, an increase of £15,000,000 in the fiduciary issue (and securities held as cover) has been authorized
by the British Treasury under section 8 of the Currency and Bank Notes Act, 1928; the maximum period for which such authorization may be granted
is two
years.
1
1ssued by the independent office for retirement of public debt (Caisse Autonome d'Amortissement).
«Not yet available.
» Preliminary figures.
159
FEDERAL RESERVE BULLETIN
MARCH, 1933
CENTRAL BANKS—Continued
(Figures are for last report date of month]
1933
1932
Dec.
National Bank of Albania (thousands
of Albanian francs):
Gold
Foreign exchange
--Loans and discounts.
Other assets..
Note circulation
Demand deposits
Other liabilities
Commonwealth Bank of Australia
(thousands of Australian pounds):
Issue departmentGold and English sterling
Securities
Banking departmentCoin, bullion, and cash
London balances
Loans and discounts
Securities
Deposits
Bank notes in circulation
Austrian National Bank (millions of
schillings):
Gold
Foreign exchnage of the reserve..
Other foreign exchange.
Domestic bills...
Government debt
Note circulation
Deposits
National Bank of Belgium (millions
of belgas):
Gold
Domestic and foreign bills
Loans to State
Note circulation
Deposits
Central Bank of Bolivia (thousands
of bolivianos):
Gold at home and abroad
Foreign exchange
Loans and discounts
Note circulation
Deposits
Bank of Brazil (millions of milreis)#:
Currency..
*_..
Correspondents abroad
Loans and discounts
Note circulation
Deposits
National Bank of Bulgaria (millions
of leva):
Gold
Net foreign exchange in reserve..
Total foreign exchange
Loans and discounts.
Government obligations
Note circulation
Other sight liabilities
Central Bank of Chile (millions of
pesos):
Gold at home and abroadForeign exchange for account of—
Bank
Exchange commission
Loans and discounts
Securities
Note circulation
Deposits
Central Bank of China 3 (thousands
of Yuan dollars):
Gold
Silver
__
Due from banks abroad..
Due from domestic banks.__
Loans and discounts
Securities
Other assets
Note circulation
Deposits—Government
Bank
_
Other
Other liabilities
1
Gold coin and bullion.
1932
Central bank
Central bank
Nov.
5,508
29.891
3,413
6,033
12, 272
19.892
12, 680
4,939
26, 786
4,475
5,427
11,488
17,660
12,479
11,499 11,199 11,199
36,095 38,253 37, 280
10, 500
41,745
5,511
31,320
3,439
5,194
13,052
20,912
11,499
Jan.
Jan
Bank of the Republic of Colombia
(thousands of pesos):
Gold at home and abroad
Foreign exchange
Loans to member banks
Note circulation
Deposits
National Bank of Czechoslovakia
(millions of Czechoslovak crowns):
Gold
Foreign balances and currency
Loans and advances
Assets of banking office in liquidation
Note circulation
Deposits
Dec.
Nov.
12,742 12,275 11,947
4,167 5,553 5,870
3.455 7,475 5,963
21,315 22,458 20,122
19,154 19,001 20,164
6,661
7,626
16,516
17,617
14,289
1,708
1,029
1,675
1,649
940
1,611
1,709
1,005
1,333
1,692
1,049
1,267
0
0
0
874
5,616 6,267 5,951
602
15,570
512
904
17, 542
28,616 Danish National Bank (millions of
65,082
kroner):
133
133
46, 566
Gold
22
37
Foreign bills, etc
13
82
82
Loans and discounts
82
332
318
149
179
149
149
Note circulation
310
131
105
39
87
39
39
Deposits.
54
0
12
0
0
884 Bank of Danzig (thousands of Dan336
379
317
97
zig gulden):
663
663
662
1,093
880
914
872
Gold
21,373 21,373 21,375
113
196
219
181
Foreign exchange of the reserve.. 12,953 14,007 14,135
252
456
Other foreign exchange
220
11,069 12,227 9,690
Loans and discounts
2,534
35,152
36,103
2,605 2,596 2,608
Note circulation
690
923
5,512 9,034 5,144
773
Deposits
728
367
363
288
(2)
3,672 Central Bank of Ecuador (thousands
3,577 3,627 3,623
206
189
307
of sucres):
217
14, 797 14, 707
Gold at home and abroad
2,612 3,850
Foreign exchange
28, 663 24, 287
16, 669
Loans and discounts..
2,766
24,024 24, 600
9,008
Note circulation
29,171 22,893
13,875 10, 782
Deposits
36, 096 25,497
24,929 12,892 National Bank of Egypt (thousands
of Egyptian pounds):
563
304
458
Gold
3,029
276
133
311
Foreign exchange
12,459
1,728
British Government securities...
2,664 1,905
170
6,631
170
Loans and discounts
170
20,892
1,807
Egyptian Government securities.
2,886 2,674
3,545
Other assets
19,012
Note circulation
1,512
5,291
Deposits—Government
1,520 1,519 1,518
-16
70
7
20,723
Other
15
245
333
8,192
208
86
Other liabilities
795
699
846
726
2,965 Bank of Estonia (thousands of
2.873 2,900 2,935
2,730
krooni):
2,426 2,635 2,590
1,514
Gold
1,663 1,593 1,637
15, 236 15,229 13, 721
Net foreign exchange
4,555 4,481 5,342
Loans and discounts
21, 378 22,084 21,790
83
85
Note circulation
30, 256 31,217 31,881
67
D eposits—Government
4,301 3,352 3,280
70
108
6,416 6,821 5,950
Bankers'
5
0
5
3,188 3,064 2,675
Other
216
308
173 Bank of Finland (millions of mark313
465
180
461
461
324
484
488
Gold
304
304
304
111
236
319
349
Balances abroad and foreign
459
credits
505
Foreign bills
236
206
284
2,494
0
1,003
1,010
Domestic
bills
856
52,205 37,109
Note circulation.
1,047 1,085 1,064
8,002
8,345
354
381
Demand liabilities
35, 341 16,962
93,672 68,624 Bank of Greece (millions of drach'
6,198
5,708
mas):
18, 513 11,720
Gold and foreign exchange
1,887 1,824 1,905
35,161 27,058
Loans and discounts
1,476 2,982 2,199
93,170 76, 601
Government obligations
3,368 3,368 3,322
34, 764
6,994
Note circulation
4,602 4,714 4,488
4,850
5,870
O ther sight liabilities
1,960 3,451 3,176
223
47,460 32,961
225
Liabilities in foreign exchange
262
2
8
Figure not available.
Items for issue and banking departments consolidated.
1,048
14,599
17, 626
30,090
64,913
42,833
836
17, 520
14,933
29,839
64,143
46,192
950
15,489
13,228
29,471
62,446
43,072
Jan.
290
6,808
384
149
26
173
325
50
21,821
22,134
6,212
10, 220
42,195
8,572
5,625
8,628
14,123
17,810
8,193
4,225
2,603
15,198
9,514
14,718
2,934
19, 246
4,256
18,096
7,593
7,307
14,244
22.436
34.437
5,083
5,571
2,856
304
420
247
972
1,220
234
1,775
830
3,151
3,797
585
133
160
FEDERAL RESERVE BULLETIN
MARCH, 193$
CENTRAL BANKS—Continued
[Figures are for last report date of month]
1933
1932
Jan.
National Bank of Hungary (millions
ofpengos):
97
14
467
52
14
350
63
202
Dec.
97
14
472
52
25
353
78
201
Nov.
Jan
97
12
460
52
23
348
78
190
100
16
425
58
13
416
97
72
Bank of Italy (millions of lire):
5,857 5,839 5,826
Gold at home.
1,306
1,305 1,352
Credits and balances abroad
5,560 6,539 6,078
Loans and discounts
13,
672 13, 564
13,433
Total note circulation
—
300
300
300
Public deposits
1,604
1,322
1,051
Other deposits
5,626
1,935
5,311
13,971
300
2,049
Foreign bills, etc
Loans and discounts
Advances to treasury
Other assets
...
Note circulation
Deposits
Miscellaneous liabilities
Bank of Japan (millions of yen):
Gold
Advances and discounts
Government bonds
Notes issued
Total deposits
Bank of Java (millions of florins):
Gold
Foreign bills
Loans and discounts
Note circulation
Deposits
-
425
807
523
1,227
423
425
846
565
1,426
387
429
771
451
1,077
586
431
1,004
143
1,187
407
104
20
44
201
37
104
19
44
205
31
104
19
48
208
32
113
9
56
225
28
Bank of Latvia (millions of lats):
Gold
Foreign exchange reserve
Bills..
Loans
Note circulation
Government deposits
Other deposits
..
Bank of Lithuania (millions of litu):
Gold—
Foreign currency
Loans and discounts
Note circulation
.
Deposits
Netherlands Bank (millions of florins):
Gold
Foreign bills
Loans and discounts
Note circulation
Deposits
_
Bank of Norway (millions of kroner):
Gold
Foreign balances and bills
Domestic credits
_
Note circulation
Foreign deposits...
_
Total deposits...
Central Reserve Bank of Peru (thousands of soles):
Gold
.__
Foreign exchange..
Bills
Note circulation
Deposits
Bank of Poland (millions of zlotys):
Gold
Foreign exchange of the reserve Other foreign exchange
Loans and discounts
Note circulation._
_
Other sight liabilities
'Revised.
1932
1933
Central bank
Central bank
49
16
91
100
53
50
29
103
104
73
1,028
73
113
951
309
1,033
71
118
962
304
1,033
71
112
967
301
873
84
175
144
32
246
295
2
97
144
30
256
315
2
74
144
23
254
301
3
82
155
16
250
311
2
68
39,347 39,056
r
734
303
20,713 20,834
50,134 48,853
5,551 6,118
54,169
114
12,647
52,731
3,924
512
27
76
651
979
185
502
48
88
700
1,003
220
501
36
106
680
997
201
600
69
119
789
1,152
233
Jan.
Bank of Portugal (millions of escudos):
Gold
—
Other reserves
Discounts and advances
Government obligations
Note circulation
_..
Other sight liabilities
National Bank of Rumania (millions of lei):
Gold
9,557
Foreign exchange of the reserve. _.
661
Other foreign exchange
32
Loans and discounts
10,301
State debt
5,726
Note circulation
21,090
Demand deposits
7,396
South
African
Reserve
Bank
(thousands of South African
pounds):
Gold
_
7,822
Foreign bills.—
_
4,270
Domestic bills
1,139
Note circulation.._
8,392
1,866
Deposits—Go vernment
Bank
6,703
Other
310
Bank of Spain (millions of pesetas):
2,259
Gold
Silver
610
Balances abroad
281
Loans and discounts
2,655
Note circulation
4,789
Deposits
947
Bank of Sweden (millions of kronor):
Gold
_
206
260
Foreign bills, etc
Loans and discounts
144
Note circulation
538
229
Deposits
Swiss National Bank (millions of
francs):
Gold
2,471
Foreign balances and bills
Loans and discounts
1
Note circulation
1,501
Demand deposits...
_. 1,141
Central Bank of the Republic of
Turkey (thousands of Turkish
pounds):
Gold
20,845
Foreign exchange
1,551
Government securities
154, 517
Other securities.
28,154
Other assets._
32, 609
Note circulation
163,205
Deposits.
21,442
Other liabilities
53,029
Bank of the Republic of Uruguay
(thousands of pesos):
Gold
_
Loans and discounts
_
Other assets
Note circulation..
Deposits—Demand
Time
Judicial and administrative
Other liabilities
National Bank of the Kingdom of
Yugoslavia (millions of dinars):
Gold
_
1, 761
Foreign exchange.
."
188
Loans and discounts
2,416
Advances to State
2,410
Note circulation
4,588
Other sight liabilities.—
844
Dec.
Nov.
Jan,
523
527
338
1,058
1,995
430
405
547
342
1,058
1,961
330
691
3461,058
1,975
407
9,527
495
64
10, 545
5,726
21, 594
6,366
9,481
553
79
10, 574
5,730
20,974
7,014
9,700
84
6
13,246
5,767
22,713
4,446
7,173
0
1,203
8,335
1,175
3,833
141
6,925
0
1,363
6,399
1,676
4,145
261
8,172
53
2,949
8,116
1,180
4,618
59
2,259
601
285
2,809
4,834
966
2,258
598
290
2,691
4,802
. 964
2,248
526
284
3,084
4,923
1,083
206
214
217
598
202
206
221
211
537
285
206
85
527
526
214
2,471
87
69
1,611
1,037
2,553
74
59
1,535
1,157
2,446
112
83
1,519
1,128
20,514 19,813
756
178
7,592
154,835 155,180 157,764
28,081 28,081
24,105 22,526 18,275
163, 523 163,868 170,629
'15,317 r 12, 510 * 5,048
r 49, 450 "•49,400 '16,653
46,730 46,730 50,544
107,302 110, 211 101,786
38,114 39,969 33,452
84,641 86,040 80,395
32,201 33,064 31,401
37,677 37,200 38,461
2,907
34,719
2,969
37,637
3,098
32,427
1,761
806
2,457
2,409
4,773
1,767
215
2,538
2,412
4,712
835
1,759
290
2,216
2,180
4,945
161
FEDERAL RESERVE BULLETIN
M A R C H , 1933
COMMERCIAL BANKS
1932
1933
Country
Jan.
Argentina (millions of gold pesos):
Bank of the N a t i o n Gold
Other cash
_ Loans and discounts
Deposits
Other banks in Buenos A i r e s Gold
Other cash
_
Loans and discounts
Deposits
. .
Canada (millions of Canadian dollars):
Assets entirely in Canada—
Cash in vault * _
Cash in central gold reserves
Security loans
Other current loans
Security loans abroad
Securities
Liabilities entirely in C a n a d a Notes in circulation . . .
Individual demand deposits
...
Individual time deposits
England (millions of pounds sterling):
Cash in vault and at bank
Money at call and short notice.
Advances and discounts
Investments—,
Deposits
France (millions of francs):
Bills and national-defense bonds.
Loans and advances
Demand deposits
Time deposits
Germany (millions of reichsmarks):
Bills and treasury notes
Due from other banks
Miscellaneous loans
Deposits
A ppeDtances
Japan (millions of yen):
Cash on hand.
__
Loans
.
Deposits
- -
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
1
111
675
639
1
113
234
642
1
115
680
649
1
105
685
644
1
121
688
664
1
136
696
712
1
127
688
702
1
132
679
696
1
128
679
690
1
128
668
681
1
128
671
680
1
114
664
659
1
200
821
936
1
199
1,251
933
1
206
798
933
1
206
794
922
1
212
783
914
1
218
775
907
1
218
769
905
1
228
761
909
1
243
754
926
1
248
747
928
1
250
745
929
1
263
740
937
176
167
158
150
154
166
161
154
151
161
202
191
185
22
131
1,071
66
674
20
130
1,063
99
664
24
131
1,071
88
671
23
122
1,070
73
666
23
114
1,057
65
663
23
110
1,037
74
669
25
112
1,028
76
674
22
114
1,004
96
703
23
115
1,003
95
699
21
117
1,018
88
727
19
108
999
99
759
20
103
964
91
778
19
100
946
84
784
123
122
121
125
119
126
123
117
124
120
116
115
108
507
1,368
496
1,390
500
1,389
495
1,393
498
1,387
489
1,373
462
1,363
475
1,367
481
1,359
493
1,371
472
1,379
466
1,378
446
1,383
177
116
1,128
268
1,677
170
108
1,093
264
1,621
171
111
1,103
266
1,639
170
111
1,105
272
1,643
176
110
1,102
284
1,661
188
111
1,114
324
1,727
188
120
1,138
333
1,765
190
114
1,176
348
1,813
190
110
1,179
367
1,826
189
112
1,171
396
1,853
190
112
1,161
409
1,859
203
123
1,167
456
1,944
211
110
1,179
455
1,943
18,454
9,041
36,196
1,179
17,347
9,114
36,435
1,218
17,482
8,711
35,983
1,201
18,043
8,312
35,929
1,239
18,998
8,296
35,826
1,284
18,994
8,593
36,351
1,250
20,136
8,188
36,031
1,263
18,745
8,456
36,148
1,286
19,034
8,490
36,372
1,280
1,503
320
5,935
7,276
903
1,380
367
6,034
7,289
863
1,613
267
6,235
7,539
872
1,652
290
6,160
7,562
851
1,660
257
5,898
7,541
815
1,661
263
5,813
7,457
796
1,651
256
5,745
7,439
773
1,674
242
5,706
7,401
775
1,631
245
5,668
7,307
770
130
2,228
1,954
116
2,264
1,938
136
2,248
1,946
215
2,250
1,949
156
2,252
1,963
117
2,234
1,973
1,665
242
5,736
7,397
782
212
2,219
2,027
197
2,187
2,019
185
2,165
2,042
302
2,188
2,125
286
2,219
2,133
166
2,171
2,132
124
2,283
2,008
19, 757 21,266
8,287 8,086
36,197 37,257
1,342 1,312
i Gold, Dominion notes, and subsidiary coin.
NOTE.—Banks included are as follows: Canada—chartered banks; England—nine London clearing banks; France—four commercial banks;
Germany—six Berlin banks previous to consolidation of Dresdner Bank and Darmstadter und Nationalbank in February, 1932, five Berlin banks
thereafter; Japan—Tokyo banks.
162
FEDERAL RESERVE BULLETIN
MARCH, 1933
DISCOUNT RATES OF CENTRAL BANKS
Date effective
Bank Bank German Bank Nether- Swiss
lands National
Reichsof
of
of EngBank
Bank
Italy
land France bank
In effect June 1,1931.
June 13
July 16
July 23
July 30 _
Aug. 1
Aug. 12
Sept. 2
Sept. 21
Sept 28
Sept. 29
Oct. 10
Dec. 10
Feb. 18,1932
Mar. 9
Mar. 10
Mar. 17
Mar. 21
Apr. 9
Apr. 19
Apr. 21
Apr. 28
May 2
May 12
June 30
Sept. 22.
Jan. 9,1933
In effect Mar. 1,1933.
2H
2
5
7
10
as
5H
2
2
15
10
8
6
7
2H
5
3
7
2M
3
5
2
2
4
2H
4
8
6
Bulgaria
Chile
Colombia-..
Czechoslovakia
8
Finland
Greece
Hungary
India-
6
5H
Albania . . .
Austria
Belgium
Bolivia
Danzig
Denmark. __
Ecuador
Estonia
6
4
Rate
Mar.
1
Country
5
In effect
since—
July
Aug.
Jan.
July
6
1,1931
24,1932
14,1932
5,1932
May 25,1932
Aug. 23,1932
Sept. 19,1932
Jan. 25,1933
4
6
9
July
Oct.
Nov.
Feb.
12,1932
12,1932
30,1932
1,1932
Feb.
Dec.
Oct.
Feb.
1,1933
3,1932
18,1932
16, 1933
Country
Japan
Java
Latvia
Lithuania
Norway
Peru
Poland
Portugal
Rate
Alar.
1
4.38
6
4
6
6
Aug.
Mar.
Jan.
Apr.
18,1932
11,1930
1,1933
1,1930
Sept.
May
Oct.
Apr.
1,1932
20,1932
21,1932
4,1932
Mar. 4,1932
Feb. 20,1933
Oct. 26,1932
Rumania
7
South Africa- 4
Spain
6
Sweden
U. S. S. R— 8
Yugoslavia—.
In effect
since—
Sept. 1,1932
Mar. 22,1927
July 20,1931
2
Changes since Feb. 1: British India—Feb. 16, down from 4 to Z\i per
cent; South Africa—Feb. 20, down from 5 to 4 per cent.
4
4
2
2H
MONEY RATES IN FOREIGN COUNTRIES
England (London)
Month
1932—January
February...
March
April
May
June
July
August
SeptemberOctober
November..
December..
1933—January
Bankers'
acceptances,
3 months
5.52
4.63
2.59
2.19
1.44
1.05
.92
.74
.67
.82
.89
1.02
Treasury
bills, 3
months
4.94
4.08
2.28
2.07
1.10
.85
.66
.60
.55
.71
.82
1.04
.87
Bankers'
Day-to-day allowance
money
on deposits
4.20
3.84
2.40
1.91
1.29
.99
.67
.73
.67
.71
.73
.81
Netherlands (Amsterdam)
Germany (Berlin)
4
4 -3
3 -1H
1H1
H
1 -
.73
Switzerland
Belgium
(Brussels)
France
(Paris)
Italy
(Milan)
Private
discount
rate
Private
discount
rate
Private
discount
rate
Private
discount
rate
Private
discount
rate
Money for Day-to-day
1 month
money
Private
discount
rate
Money for
1 month
6.94
6.67
6.10
5.12
4.87
4.75
4.58
4.50
4.25
3.87
3.87
3.87
7.58
7.98
7.10
6.31
5.96
5.76
5.75
5.75
5.55
5.00
5.00
5.08
7.86
7.81
7.76
6.17
5.91
5.70
5.49
5.82
5.55
4.94
4.80
4.91
2.24
1.87
1.22
1.02
.60
.39
.49
.37
.37
.37
.37
.37
2.37
1.69
1.06
.94
1.03
1.00
1.00
1.00
1.00
1.00
1.00
1.00
3.87
5.03
4.98
.37
1.00
Hungary
Sweden
(Stock,
holm)
Japan (Tokyo)
Month
1932—January...
February..
March
April
May
June
July
August
September
October—.
November.
December.
1.68
1.52
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
2.91
3.31
3.36
3.26
3.21
3.16
3.17
3.12
3.00
3.00
3.00
2.94
1.75
1.75
1.80
1.66
1.50
1.22
.99
1.02
1.00
1.01
1.00
.91
7.50
6.92
6.53
6.00
5.52
5.50
5.50
5.50
5.50
5.00
5.00
5.00
1933—January...
1.50
2.88
1.12
4.42
Prime
Loans up Discounted
Call
commer- Day-to-day
to 3
money
money
bills
cial paper
months
overnight
6 -7H
5H7
5 -7
5 -7
4
-fy
4 -b\
4 -5^
5.84-6.57
5.84-6.57
6.20-6.57
6.20-6.57
6.20-6.57
6.02-6. 57
6.02-6.39
5.84-6.21
5.66-6.21
5.66-6.02
5.66-5.84
5.66-5.84
6.02
6.39
5.84
5.48
4.56
4.56
4.20
4.02
3.47
3.28
2.92
2.74
163
FEDERAL RESERVE BULLETIN
MARCH, 1933
FOREIGN EXCHANGE RATES
[Monthly averages of daily quotations based on noon buying rates for cable transfers in New York. In cents per unit of foreign currency]
Argentina
Month
1932—February
March
April
May
June
July
August
September
October
November
December
Australia 3
Austria Belgium
Brazil
Bulgaria Canada
58.2204
58.2879
58.2171
58.3242
58.5205
58.5574
58.5695
58.5886
58.5835
58.5837
__ 58.5851
275.95
290.56
299.40
293.42
291.15
283.40
277. 50
277.13
271.15
261.50
261. 77
13.9516
13.9601
13.9544
13.9645
13.9600
13.9813
13.9696
13.9635
13.9550
13.9477
13.9581
13.9384
13.9361
13.9956
14.0249
13.9366
13. 8724
13.8735
13. 8606
13.8940
13.8723
13.8460
6.1720
6. 2121
6. 5402
7.1294
7.5008
7. 5960
7.6221
7. 6171
7.6214
7.6302
7.6327
1933—January
February
58.5847
58.5804
267.19
272.17
13.9715
13.9867
13.8629
13.9638
7. 6352
7.6348
Month
Egypt
England
Finand
354.4697
372.6136
384. 7773
376.8328
374.1009
364.0790
356.4018
355.9494
348.5176
336.0492
336.1120
345.6316
363.9304
374. 9994
367.5140
364.6648
354.9564
347. 5721
347.1062
339.6163
327.5267
327.8679
1. 5014
L. 6015
L. 7225
L. 7171
L. 7019
L. 5350
L5114
L. 4953
L. 4823
L. 4441
L. 4239
3.9379
3.9325
3.9430
3.9468
3.9363
3.9207
3.9187
3.9179
3.9264
3.9190
3.9033
336.1385
342.2073
]L.
1.4577
4919
3.9034 23.7703
3. 9228 23.8291
1932—February. _
March
April
May
June
_
July..
August
SeptemberOctober
NovemberDecember..
1933—January..^
February.
New
Zealand* N « w » y Poland
Month
Germany
France
Chile
0.7145 87.2936 12.0500
.7176 89.4530 12.0606
.7201 89.8808 10.6538
.7202 88.4430 6.0000
.7200 86. 7427 6.0202
6.0250
.7230 87.0658
6.0283
.7209 87.5513
.7203 90. 2636 6.0414
.7200 91. 2332 6.0250
.7200 87.3000 6.0276
.7200
6.0274
.7195
.7200
87. 4621
83.5084
China
Colombia
24.3587
23. 9213
22.3221
21.7116
21.3125
20.6400
21.0031
21.0404
20.8883
20.5937
19.4719
95.2400 99.9622
95.2400 100.0590
95.2400 99.9816
95.2400 99.9299
95.2400 99.9217
95.2400 99.9186
95.2400 99.9094
95.2400 99.9118
95.2400 99. 9109
95.2400 99.9237
95.2400 99.9261
2.9627
2.9628
2.9629
2.9650
2.9641
2.9589
2.9596
2.9594
2.9606
2.9619
2.9613
19.0192
20.0112
20.5267
20.0654
19.9248
19.2044
18.4993
17.9781
17.6412
17.0613
17.0069
95.2400
94.4191
99.9411
99.9790
2.9614
2.9632
16.9097
15.2612
6.0275 19.7916
6.0278 20.1136
Cuba
Czechoslovakia
Denmark
Hungary
India
Italy
Japan
Mexico Nether
lands
17.4397
17.4353
17.4298
17. 4384
17.4740
17.4612
17.4507
17. 4653
17.4452
17.4356
17.4265
26.0329
27.3121
28.0133
27.3175
27.1647
26. 6842
26.1577
26.2192
25.6800
24. 7830
24.7923
5.1799
5.1824
5.1493
5.1491
5.1162
5.1009
5.1144
5.1264
5.1195
5.1124
5.1088
34.3233
32.1562
32.8063
31.9730
30.2856
27.4471
24.4944
23. 6314
23.0628
20.6218
20.7298
37.8712
33.6841
33.3728
30.2540
26.8977
27.7321
28.5682
29.9159
31.1060
32.2205
31.9923
40.3479
40.2799
40.4914
40.5474
40.4411
40.2740
40.2443
40.1586
40.2217
40.1774
40.1680
.5392 21. 7525 17. 4260 25.4055
.5610 22.0710 17. 4359 25. 8336
5.1177
5.1156
20.7393
20.7945
30.1631
28.4212
40.1797
40.2691
Greece
Hong
Kong
23. 7392 1.2875 25.3353
23.7812 1.2875 24.6855
23.7427 1.2318 23. 7187
23.7947
.6641 23.4337
23. 6878 .6387 23. 3431
23. 7176 .6399 22.8893
23. 7838 .6321 23.2479
23. 7814 .6060 23.4293
23.7692
.6014 22.9487
23. 7536 .5743 22.4062
23.7869
.5418 21.3527
Portugal
Rumania
Spain
Straits
Settlements
Union of
Turkey South Uruguay YugoSweden Switzerslavia
land
Africa 3
19.2922
19.8540
19.0910
18. 7238
18. 7049
18.2190
17. 8485
17.8055
17. 5334
17. 4314
17. 9108
1932—FebruaryMarch
April
May
June
July
August
September.
October
November.
December.
315.65
332.36
342.47
335.63
333.03
324.16
317.42
316. 99
310.15
299.11
299.42
18.7701
19.6003
19.0780
18.4823
18.0626
17.6386
17.4101
17.4470
17.1752
16. 7252
16.8899
11.1896
11.1770
11.1847
11.1810
11.1839
11.1885
11.1771
11.1800
11.1740
11.1769
11.1825
3.1830
3.2832
3. 3804
3.3267
3. 3320
3. 2240
3.1579
3.1481
3.0872
3.0293
3.0191
0. 5950
.5958
.5960
.5970
.5966
.5972
.5978
.5982
.5978
.5975
.5973
7. 7671
7. 5993
7. 6942
8.1169
8.2451
8.0518
8.0608
8.1044
8.1871
8.1730
8.1506
39. 7745
41.3333
42. 7404
42. 2400
41.9567
40.9675
40.1042
40. 2475
39.4372
38. 0026
38.0123
1933—January...
February..
292.13
272.87
17.2684 11.1872
17. 5270 11.1940
3. 0364
3.1017
.5972
.5958
8.1777
8.2446
18. 2982 19. 2836 47.0260
39. 5818 18. 2670 19. 3707
19.4961
19. 3405
19.4374
19. 5579
19.5141
19.4684
19.4528
19. 3007
19.3041
19. 2470
19. 2354
46.1521
47.0796
47.3186
47. 5433
47. 2115
47. 5680
47.4413
47.3900
47. 3466
47. 3402
47. 3397
1. 7803
1. 7753
1. 7725
1. 7743
1. 7436
1.6717
1. 6903
1. 5892
1.4094
1.3506
1.3448
340. 63 47. 3366
338.90 47. 3363
1. 3555
1. 3593
471.14
47.4678
47.3330 474.98
473.19
47.4935
47. 5060 479. 72
47. 3550 479.89
47.1604 478. 31
477. 50
47.1011
476. 79
47.1916
47.2680 475.85
47. 2167 477. 58
47. 0127 * 479.13
Monetary units and pars of exchange (in cents per unit of foreign currency):
Country
Argentina
Australia
Austria
Belgium
Brazil
Bulgaria
Canada
Chile
China
Colombia
Cuba
England
Monetary unit
Par of
exchange
Country
Gold peso
Pound
Schilling
Belga...
__
Milreis
Lev.
Dollar
Peso
_.
Yuan*
Peso
do
Egyptian pound.
Pound
96.48
486. 66
14.07
13.90
11.96
.72
100.00
12.17
20.28
97.33
100.00
494.31
486. 66
Finland
France
Germany
Greece
Hong Kong
Hungary
India
Italy
Japan
Mexico
Netherlands
New Zealand
Norway
Monetary unit
Markka
Fn
Reichsmark
_ Drachma
Hong Kong dollar
Pengo._. Rupee.
Lira.
Yen.... !__
Silver peso..
Florin.
Pound
Krone
Par of
exchange
Country
Monetary unit
2.52
3.92
23.82
1.30
20.58
17.49
46.50
5.26
49.85
49.85
40.20
486. 66
26.80
Poland
Portugal
Rumania
Spain
Straits 2 Settlements.
Sweden
Switzerland
_
Turkey
Union of South
Africa.
Uruguay
Yugoslavia
Zloty
Escudo
Leu..
Peseta
Singapore dollar...
Par of
exchange
11.22
4.42
.60
19.30
39.92
Krona.
Franc.
Turkish pound
Pound
26.80
19.30
439. 65
486. 66
Peso..
Dinar.
103.42
1.76
1
Silver currencies—Figures given for parity represent gold value of unit in February, 1933, computed by multiplying silver content of unit by
New2 York average price of silver for February, 1933, which was $0.26386 per fine ounce.
Straits Settlements dollar is legally equivalent to seven-sixtieths of one English pound. Figure given for parity represents seven-sixtieths
of average quotation of pound in New York for February, 1933.
3 Monthly averages for Australia, New Zealand, and South Africa from February through December, 1932, are taken from the League of Nations
Monthly Bulletin of Statistics.
4
5
Average based on quotations for Dec. 1-27.
Average based on quotations for Jan. 7-31.
Back figures—See BULLETIN for January, 1933, 1932. 1931,1930, 1929. and 1928.
164
FEDERAL RESERVE BULLETIN
MARCH, 1933
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
SECURITY PRICES
[Index numbers except as otherwise specified]
Common stocks (1926 average—100)l
Bonds
United
States
(average
price)
Month
England
France
(December, (1913 aver1921=100) age=100)
Germany
(average
price) J
United
States
England
France
Germany
Number of issues.
60
87
421
278
300
1931—January
February...
March
April
May
June
July
August
September..
October
November..
December..
99.6
99.4
100.0
99.6
99.7
99.4
99.4
98.5
95.6
89.4
89.0
81.6
112.8
109.7
111.6
111.3
110.8
111.1
111.2
107.2
103.5
104.2
104.8
102.2
95.7
97.1
97.9
99.0
98.4
98.8
98.9
99.5
97.7
94.8
94.4
90.8
112.3
119.8
121.6
109.2
98.0
95.1
98.2
95.5
81.7
69.7
71.7
57.7
89.6
89.3
89.4
85.1
76.8
77.8
79.2
73.8
67.2
75.6
74.7
68.1
156.7
160.1
155.4
148.5
138.2
141.2
132.6
130.5
115.5
106.9
104.3
94.8
1932—January
February
March
April
_...
May
June.
July
August
September
October
November
December
81.0
80.3
80.8
79.4
75.2
72.2
74.2
83.2
85.8
84.1
81.9
81.2
104.7
106.5
111. 6
110.6
111.4
111.0
115.6
116.1
118.4
120.3
115.9
116.1
91.5
90.3
90.5
89.0
85.9
85.2
87.4
88.6
89.5
89.1
88.9
87.8
58.0
56.4
56.8
43.9
39.8
34.0
35.9
53.3
58.2
49.9
47.5
47.4
69.7
68.9
69.6
63.5
61.6
59.3
63.5
69.5
72.7
72.4
72.7
72.0
107.3
126.2
117.6
107.3
94.4
97.4
100.4
103.4
104.3
97.4
100.0
104.3
«45.5
46.4
45.6
45.8
47.9
54.1
52.5
53.4
56.7
1933—January.
84.1
116.9
86.4
49.1
72.4
101.3
59.3
169
81.4
75.0
78.5
83.6
84.8
76.1
69.6
«70.5
* Stock price series for England, France, and Germany have been converted from original bases to a 1926 base.
»New ssries compiled by the Statistisches Reichsamt; weighted average of the prices of one hundred sixty-nine 6 per cent bonds.
* Figures not available because of closing of the exchange.
< Based on data for part of month, no quotations being available for remainder of month.
Back figures.—See BULLETIN for February, 1932, page 121, and sources there cited.
WHOLESALE PRICES—ALL COMMODITIES
United
Canada
England
Germany
France
Italy
States
(1926=100) (1926=100) (1913=100) (1913=100) (1913=100) (1913=100)
Month
1931—January
. . . . .
March.
April
May
June
July
August
September
October
November
December.
1932—January
February
March .
April
May
June
July
August
September
October
November
December
-
. .
. . .
- .
.
.
-. - .
«. .
. . .
- ...
...
_ ..
1933—January
.
_.
.
- .
Japan
(Oct.,
1900=100)
Netherlands
(1913=100)
78
77
76
75
73
72
72
72
71
70
70
69
77
76
75
74
73
72
71
71
70
70
71
70
107
106
106
106
104
103
102
100
99
104
106
106
541
538
539
540
520
518
500
488
473
457
447
442
115
114
114
114
113
112
112
110
109
107
107
104
342
338
339
337
332
327
324
322
319
322
320
319
158
158
158
158
154
151
153
152
150
147
147
151
105
104
103
102
102
100
97
94
91
89
89
85
67
66
66
66
64
64
65
65
65
64
64
63
69
69
69
68
68
67
67
67
67
65
65
64
106
105
105
102
101
98
98
100
102
101
101
101
439
446
444
439
438
425
430
415
413
412
413
413
100
100
100
98
97
96
96
95
95
94
94
92
317
314
315
311
305
297
296
296
300
299
298
296
160
161
159
154
150
146
148
156
167
169
178
185
84
83
82
80
79
78
78
75
76
77
77
76
61
64
100
411
91
292
185
75
165
FEDERAL RESERVE BULLETIN
MARCH, 1933
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued
WHOLESALE PRICES—GROUPS OF COMMODITIES
[Groups are those included in indexes shown in preceding table]
England ( 1913-100) France (1913-100)
United States (1926-100]
Month
Farm
products
73
51
50
49
47
46
48
49
49
47
47
44
1933—January
78
77
76
75
74
74
74
74
73
74
72
68
7?
71
71
71
70
70
70
70
70
70
70
69
56
67
62
62
61
61
43
.] Foods
79
65
63
62
61
59
59
61
53
December
113
112
111
113
113
113
97
455
372
102
114
101
114
116
101
99
115
114
112
108
107
96
94
91
92
95
107
106
99
98
107
98
108
107
Germany
(191314=100) i
1932
1933
1932
1933
1932
1933
109
q
131
131
129
126
125
123
125
123
123
125
125
125
123
114
115
115
115
114
111
108
104
102
102
104
103
102
116
107
-
104
101
100
-
Provisions
107
Industrial raw Indusfinand semi- trial
ished
finished
products products
108
106
106
105
103
103
103
102
100
99
99
97
142
140
139
138
137
137
136
136
135
133
132
130
92
91
90
89
88
87
87
88
89
125
122
121
120
119
118
117
116
115
115
114
84
90
91
89
88
87
85
84
83
85
83
81
80
81
81
87
10?
100
99
97
96
95
97
96
94
107
105
103
101
99
99
94
91
95
92
95
97
95
93
92
93
91
89
88
88
88
88
87
114
113
COST1 OF LIVING
1933
99
99
390
389
388
381
374
369
370
382
384
379
373
375
100
102
1932
100
100
97
496
511
510
506
511
490
498
453
445
450
458
456
98
113
115
113
France
(July,
1914=100)
101
101
507
505
603
495
480
472
465
452
443
429
416
400
103
103
102
100
98
95
95
England
(July,
1914=100)
105
105
580
575
581
592
566
571
541
528
508
489
482
491
104
110
108
108
United
States
(1913=100)
Januaxv
February
March
April
May
June
July..
August
September
October
November..
December
Indus- AgriculFarm
Industrial
tural
and food
trial
products products products products
FOOD PRICES
]RETAIL
Month
81
78
78
76
74
73
74
75
74
73
71
69
70
71
70
67
65
66
64
61
59
59
56
1932—January . February..—
March
April
May
Juno
July
August
September.
October
Other
commodities
Illl
1931—January
February
March
April
May
June
July
August
September
October
November
December
Foods
Germany (1913-100)
114
114
113
113
113
114
112
111
110
110
109
Month
January
February
March
April
May
June
July
August
September
October November
December
United
States
(1913=100)
England
(July,
1914=100)
France
(Jan.-June,
1914=100)
1932
1932
1933
1932
147
147
146
144
143
142
143
141
141
143
143
143
142
1933
136
_.
...
...
...
:::
...
...
"ifi-
108
109
105
1933
<3ermany
(1913]L4=100) i
1932
m
m
m
i?i
1933
117
i?,i
122
120
120
119
119
118
» Average of October, 1913, January, April, and July, 1914=100.
and cost of living.—United States—
SOURCE: Wholesale prices.—For original sources, see BULLETIN for March, 1931 (p. 159). Retail food .
Bureau of Labor Statistics, Department of Labor; England—MINISTRY OF LABOUR; Germany—Statistic) tes Reichsamt; France—For retail food
prices, Statistique Ge'ne'rale, and for cost of living, Commission d'fitudes relatives au cout de la vie a Paris
166
FEDERAL RESERVE BULLETIN
MARCH, 1933
LAW DEPARTMENT
CONSTITUTIONALITY OF LEGISLATION PROVIDING A UNIFIED COMMERCIAL
BANKING SYSTEM FOR THE UNITED STATES
The Federal Reserve Board, at the time of
the appearance of the Governor of the Board
on March 29, 1932, before the Senate Committee on Banking and Currency in connection
with the Glass bill (S. 4115), which was then
under consideration by the committee, was
requested to suggest a constitutional method
of creating a unified banking system in the
United States. In accord with this request,
the General Counsel of the Federal Reserve
Board prepared an opinion, which was transmitted to the Chairman of the Senate Committee on Banking and Currency. The text
of the opinion is published below:
CONSTITUTIONALITY OF LEGISLATION PROVIDING
A UNIFIED COMMERCIAL BANKING SYSTEM
FOR THE UNITED STATES
_ ^ r j _ _^
To the Federal Reserve Board:
Senate Resolution 71, adopted on May 5,
1930, directed the Committee on Banking and
Currency to conduct an investigation and recommend legislation "to provide for a more
effective operation of the national and Federal
reserve banking systems of the country."
Following extensive hearings by a subcommittee
of which he was chairman, Senator Glass
introduced Senate bill 4115, Seventy-second
Congress. At a hearing on the bill before the
Committee on Banking and Currency on
March 29, 1932, Governor Meyer presented a
letter expressing the unanimous views of the
members of the Federal Reserve Board, which
contained the following statement:
It should be recognized that effective supervision of
banking in this country has been seriously hampered by
the competition between member and nonmember
banks, and that the establishment of a unified system
of banking under national supervision is essential to
fundamental banking reform.
Bankers had testified that certain provisions
of the bill would make it difficult for member
banks to compete with nonmember banks and
would cause defections from the Federal reserve
system and the national banking system; and
during his testimony Governor Meyer called
attention to the statement quoted above and
stressed the fact that " effective supervision
of banking in this country has been seriously
affected by competition between member and
nonmember banks/ 7 and that "competition
between the State and national banking systems
has resulted in weakening, both steadily."
Thereupon Senator Glass requested Governor
Meyer to " suggest to us a constitutional
method of creating a unified banking system in
this country."
In view of the circumstances under which
this request was made, the history of our
banking system, and the provisions of Senate
Resolution No. 71, it appears that, by "creating a unified banking system," is meant bringing all commercial banking business in the
United States into a single banking system
subject to effective regulation and supervision
by the Federal Government.
Congress has already created the national
banking system and the Federal reserve system;
and the problem is how to achieve uniformity
of corporate powers, regulation and supervision
with respect to banks engaged in the commercial banking business and to provide for their
safe and effective operation, by eliminating
the existing competition between the Federal
Government and the 48 States for the privilege
of granting charters to banks transacting that
type of business.
Since commercial banking necessarily involves the receipt of deposits subject to withdrawal by check, Congress can achieve that
result if it can enact legislation which will have
the effect of confining the business of receiving
deposits subject to withdrawal by check to
national banks, which have uniform powers
under the national bank act, are subject to
effective regulation and supervision by the
Federal Government, and are required to be
members of the Federal reserve system.
The question presented, therefore, is whether,
in order to provide for a more effective operation of the national banking system and the
Federal reserve system, Congress has the power
under the Constitution to restrict the business
of receiving deposits subject to withdrawal by
check to national banks.
A consideration of the decisions of the Supreme Court of the United States leaves no
room for doubt that this question must be
answered in the affirmative. While numerous
authorities supporting this conclusion are cited
and discussed below, the principal reasons may
be stated concisely as follows:
1. The power to create the national banking
system and the Federal reserve system as useful instrumentalities to aid the Federal Govern-
MARCH, 1933
FEDERAL RESERVE BULLETIN
ment in the performance of certain important
Governmental functions includes the power to
take such action as Congress may deem necessary to preserve the existence and promote the
efficiency of those systems. McCulloch v.
Maryland, 4 Wheat. 316; Farmers and Mechanics National Bank v. Bearing, 91 U. S. 29;
Westjall v. United States, 274 U. S. 256.
2. Having provided the country with a
national currency through the national banking
system and the Federal reserve system, Congress may constitutionally preserve the full
benefits of such currency for the people by appropriate legislation. Veazie Bank v. Fenno,
S Wall. 533; Legal Tender Cases, 12 Wall. 457.
3. The existence of a heterogeneous banking
structure in which there have been more than
10,000 bank failures during the past 12 years
constitutes a burden upon and an obstruction
to interstate commerce; and Congress may
enact appropriate legislation to correct this condition. United States v. Ferger, 250 U. S.
195; Stafford v. Wallace, 258 U. S. 495; Board
of Trade v. Olsen, 262 U. S. 1.
Any one of these grounds standing alone
would be a sufficient constitutional justification
for the enactment of legislation restricting the
conduct of the commercial banking business to
national banks; and, when all three grounds are
considered together, there can be no doubt
that such legislation would be not only constitutional but also entirely appropriate and in
accordance with a proper division of authority
between the Federal Government and the
States.
Having the power to confine the commercial
banking business to national banks, Congress
can exercise that power in any manner which it
deems appropriate and adequate for its purposes. It is not necessary that the legislation
assume the form of a revenue act or an act to
regulate interstate commerce, though either of
these means would be appropriate.
I.
THE POWER
TO CREATE AND MAINTAIN A
BANKING SYSTEM
Ample authority for the first conclusion
stated above is contained in the opinion of
Chief Justice Marshall in the case of McCulloch
v. Maryland (1819), 4 Wheat. 316, 4 L. Ed.
579, wherein the Supreme Court of the United
States established the following principles:
(1) Congress has the power to create banks as
convenient, appropriate, and useful instrumentalities to aid the Federal Government in the
performance of its functions.
167
(2) This power is derived from a group of
great powers, including the powers to lay and
collect taxes, to borrow money, to regulate
commerce, to declare and conduct wars, to raise
and support armies and navies and, "To make
all Laws which shall be necessary and proper for
carrying into Execution the foregoing Powers,
and all other Powers vested by this Constitution in the Government of the United 77
States, or
in any Department or Officer thereof.
(3) If the end be legitimate and within the
scope of the Constitution, all the means which
are appropriate, which are plainly adapted to
that end, and which are not prohibited, may
constitutionally be employed to carry it into
effect.
(4) If a certain means to carry into effect any
of the powers, expressly given by the Constitution to the Government of the Union, be an
appropriate measure, not prohibited by the
Constitution, the degree of its necessity is a
question of legislative discretion, not of judicial
cognizance.
(5) The States have no power by taxation or
otherwise to retard, impede, burden, or in any
manner control the operation of the Constitutional laws enacted by Congress to carry into
execution the powers vested in the Federal
Government.
(6) The Constitution and laws of the United
States are the supreme laws of the land; and
" it is of the very essence of supremacy to remove
all obstacles to its action within its own sphere.77
Applying these principles, Congress has
created the national banking system and the
Federal reserve system, which are now recognized as appropriate, if not indispensable,
agencies to assist the Government in the performance of certain essential Governmental
functions. The States have no legal power to
retard, impede, burden, or in any manner control the operation of these agencies; and Congress clearly has the right to enact such legislation as77it may deem necessary to "remove all
obstacles to their safe and effective operation.
If it deems it necessary to prevent banks organized under State laws from engaging in the commercial banking business in order to accomplish
this object, Congress may lawfully do so.
Since the decision of the Supreme Court in
McCulloch v. Maryland is the legal foundation
stone upon which our national banking system,
our Federal reserve system and our Federal
farm loan system have been built and their
constitutionality sustained, that case should be
considered in more detail. The essential facts
giving rise to the decision were as follows:
168
FEDERAL RESERVE BULLETIN
The Bank of the United States was granted a
special charter by the act of Congress approved
April 10, 1816, and was authorized to establish
branches throughout the United States. It
established its head office in Philadelphia and a
branch in Baltimore, Md. The Legislature of
the State of Maryland enacted a statute taxing
all banks or branches thereof in the State which
were not chartered by the State and prescribing
a penalty to be collected from the officers of
any bank that failed to pay the tax. The
Bank of the United States did not pay this
tax on the transactions of its Baltimore branch,
and a suit was brought against McCulloch, the
cashier of the branch, to recover the penalty.
McCulloch defended on the ground that the
State law was unconsititutional and void because it was in conflict with a valid Federal
statute. The State contended that the act of
Congress chartering the Bank of the United
States was unconstitutional and that, therefore, the State statute was valid. By a unanimous opinion, the Supreme Court of the United
States held that the act of Congress chartering
the Bank of the United States was valid and
that the State law purporting to tax the bank
was invalid.
The following quotations from the masterful
opinion rendered by Chief Justice Marshall will
illustrate the profound reasoning upon which
the court's decision was based (4 Wheat. 407,
411,415,421,422,424):
Although, among the enumerated powers of government, we do not find the word "bank" or "incorporation," we find the great powers to lay and collect taxes;
to borrow money; to regulate commerce; to declare and
conduct a war; and to raise and support armies and
navies. The sword and the purse, all the external relations, and no inconsiderable portion of the industry of
the nation, are entrusted to its Government. Tt can
never be pretended that these vast powers draw after
them others of inferior importance, merely because they
are inferior. Such an idea can never be advanced. But
it may with great reason be contended, that a government, entrusted with such ample powers, on the due
execution of which the happiness and prosperity of the
Nation so vitally depends, must also be entrusted with
ample means for their execution.
*
*
*
*
*
But'the Constitution of the United States has not
left the right of Congress to employ the necessary
means for the execution of the powers conferred on the
Government to general reasoning. To its enumeration
of powers is added that of making "all laws which shall
be necessary and proper, for carrying into execution the
foregoing powers, and all other powers vested by this
Constitution, in the Government of the United States,
or in any department thereof."
*
*
*
*
*
To have prescribed the means by which Government
should, in all future time, execute its powers, would
have been to change, entirely, the character of the in-
MARCH, 1933
strument, and give it the properties of a legal code. It
would have been an unwise attempt to provide, by immutable rules, for exigencies which, if foreseen at all, must have
been seen dimly, and which can be best provided for as
they occur. To have declared that the best means shall
not be used, but those alone without which the power
given would be nugatory, would have been to deprive
the legislature of the capacity to avail itself of experience, to exercise its reason, and to accommodate its
legislation to circumstances.
*
*
*
*
*
We admit, as all must admit, that the powers of the
Government are limited, and that its limits are not to
be transcended. But we think the sound construction
of the Constitution must allow to the national legislature
that discretion, with respect to the means by which the
powers it confers are to be carried into execution, which
will enable that body to perform the high duties assigned to
it, in the manner most beneficial to the people. Let the
end be legitimate, let it be within the scope of the Constitution, and all means which are appropriate, which are
plainly adapted to that end, which are not prohibited, but'
consistent with the letter and spirit of the Constitution, are
constitutional.
*
*
*
*
*
If a corporation may be employed indiscriminately
with other means to carry into execution the powers of
the government, no particular reason can be assigned
for excluding the use of a bank, if required for its
fiscal operations. To use one, must be within the discretion of Congress, if it be an appropriate mode of
executing the powers of government. That it is a convenient, a useful, and essential instrument in the prosecution of its fiscal operations, is not now a subject of
controversy.
*
*
*
*
*
After this declaration, it can scarcely be necessary to
say that the existence of State banks can have no possible
influence on the question. No trace is to be found in the
Constitution of an intention to create a dependence of
the Government of the Union on those of the States,
for the execution of the great powers assigned to it. Its
means are adequate to its ends; and on those means
alone was it expected to rely for the accomplishment of
its ends. To impose on it the necessity of resorting to
means which it can not control, which another government may furnish or withhold, would render its course
precarious; the result of its measures uncertain, and
create a dependence on other governments, which
might disappoint its most important designs, and is
incompatible with the language of the Constitution.
But were it otherwise, the choice of means implies a right
to choose a national bank in preference to State banks, and
Congress alone can make the election. [Italics supplied.]
Having announced that it was "the unanimous and decided opinion" of the court that
the act to incorporate the Bank of the United
States was a law made in pursuance of the Constitution, and was a part of the supreme law of
the land, the Chief Justice proceeded to consider the question whether the State could tax
the bank (4 Wheat. 426, 427, 436):
This great principle is, that the Constitution and
the laws made in pursuance thereof are supreme; that
they control the Constitution and laws of the respective
States, and can not be controlled by them. From this,
which may be almost termed an axiom, other proposi-
MARCH, 1933
FEDERAL RESERVE BULLETIN
169
tions are deduced as corollaries, on the truth or error of relevant in the judgment of Congress to make
which, and on their application to this case the cause the business of the bank successful.
has been supposed to depend. These are, 1st. That a
In rendering the opinion of the court, Chief
power to create implies a power to preserve. 2d. That a
power to destroy, if wielded by a different hand, is hostile Justice Marshall said (9 Wheat. 860-863):
to, and incompatible with these powers to create and to * * * That the mere business of banking is, in its
preserve. 3d. That where this repugnancy exists, that own
nature, a private business, and may be carried on
authority which is supreme must control, not yield to that by individuals
or companies having no political conover which it is supreme.
nection with the Government, is admitted; but the
*
*
*
*
bank is not such an individual or company. It was
* * * It is of the very essence of supremacy to remove not created for its own sake, or for private purposes.
all obstacles to its action within its own sphere, and so to It has never been supposed that Congress could create
modify every power vested in subordinate governments such a corporation. The whole opinion of the court,
as to exempt its own operations from their own influence. in the case of McCulloch v. The State of Maryland, is
This effect need not be stated in terms. It is so in- founded on, and sustained by, the idea that the bank is
volved in the declaration of supremacy, so necessarily an instrument which is " necessary and proper for
implied in it, that the expression of it could not make carrying into effect the powers vested in the Governit more certain. We must, therefore, keep it in view ment of the United States."
while construing the Constitution.
*
*
*
*
*
*
*
*
*
*
*
Can
this
instrument,
on
any
rational
calculaThe court has bestowed on this subject its most
effect its object, unless it be endowed with that
deliberate consideration. The result is a conviction tion,
of lending and dealing in money which is conthat the States have no power, by taxation or otherwise, faculty
by its charter? * * * The distinction beto retard, impede, burden, or in any manner control the ferred
destroying what is denominated the corporate
operations of the constitutional laws enacted by Congress tween
and destroying its vivifying principle, is
to carry into execution the powers vested in the general franchise,
as incapable of being maintained as a distincgovernment. This is, we think, the unavoidable conse- precisely
between the right to sentence a human being to
quence of that supremacy which the constitution has tion
death, and a right to sentence him to a total privation
declared. [Italics supplied.]
of sustenance during life. Deprive a bank of its trade
In the case of Osborn v. United States Bank and business, which is its sustenance, and its immortal(1824), 9 Wheat. 738, 6 L. Ed. 204, substan- ity, if it have that property, will be a very useless attriThis distinction, then, has no real existence.
tially the same questions as had been consid- bute.
To tax its faculties, its trade and occupation, is to tax
ered by the Supreme Court in McCulloch v. the
bank itself. To destroy or preserve the one, is to
Maryland, were presented in substantially the destroy or preserve the other.
same form. Yielding to the request of counsel,
*
*
*
*
the whole subject was reexamined and the * * * The operations of the bank are believed not
principles announced in McCulloch v. Maryland only to yield the compensation for its services to the
Government, but to be essential to the performance of
were restated and upheld.
services. Those operations give its value to the
Considering more fully the question of the those
currency in which all the transactions of the Government
possession by the bank of private powers asso- are conducted. They are, therefore, inseparably conciated with its public authority and meeting the nected with those transactions. They enable the bank to
contention that the two were separable and render those services to the Nation for which it was created,
are, therefore, of the very essence of its character, as
that the public power should be treated as and
national instruments * * *. [Italics supplied.]
within, and the private power as without, the
implied power of Congress, the Supreme Court
expressly held that the authority of Congress
was to be ascertained by considering the bank
as an entity, possessing the rights and powers
conferred upon it, and that the lawful power to
create the bank and give it the attributes which
were deemed essential should not be rendered
unavailing by detaching particular powers and
considering them alone and thus destroying
the efficacy of the bank as a national instrument.
The ruling of the court, therefore, was to the
effect that, although a particular character of
business might not, when considered alone, be
within the implied power of Congress, yet, if
such business was appropriate or relevant to
the banking business, the implied power was
to be tested by the right to create a bank and
the authority to attach to it that which was
The charter of the Bank of the United States,
having expired in 1836, the country was left
to depend for its currency on a multitude of
State banks which sprang up under numerous
different State laws, most of which contained
either no provisions or inadequate provisions
regarding capital, reserves, and supervision.
Having experienced the difficulty of conducting the War of 1812 without the aid of a Federal
banking system, however, Congress, during the
Civil War enacted the national bank act on
February 25, 1863, and revised it on June 3,
1864. This time it did not undertake to create
a single bank with branches throughout the
Union, but provided for the creation of numerous local banks each independent of the other
but all operating under a single banking law
and under the supervision of the Treasury
Department of the United States Government.
170
FEDERAL RESERVE BULLETIN
In the case of Farmers and Mechanics National Bank v. Bearing (1875), 91 U. S. 29, 23
L. Ed. 197, the Supreme Court applied the
doctrines of its earlier decisions to national
banks organized under the national bank act of
1864. The case involved the question whether
State usury laws were applicable to national
banks; and, in holding that they were not, the
court said (p. 33):
The constitutionality of the act of 1864 is not questioned. It rests on the same principle as the act
creating the second bank of the United States. The
reasoning of Secretary Hamilton and of this court in
McCulloch v. Maryland (4 Wheat. 316) and in Osboirn
v. Bank (9 Wheat. 738), therefore, applies. The national banks organized under the act are instruments designed
to be used to aid the Government in the administration of
an important branch of the public service. They are
means appropriate to that end. Of the degree of the necessity which existed for creating them, Congress is the sole
judge.
Being such means, brought into existence for this
purpose, and intended to be so employed, the States
can exercise no control over them, nor in any wise affect
their operation, except in so far as Congress may see
proper to permit. Anything beyond this is "an abuse,
because it is the usurpation of power which a single
State can not give." Against the national will " t h e
States have no power, by taxation or otherwise, to
retard, impede, burthen, or in any manner control the
operation of the constitutional laws enacted by Congress to carry into execution the powers vested in the
general Government." Osborn v. Bank, supra; Weston
and Others v. Charleston, 2 Pet. 466; Brown v. Maryland, 12 Wheat. 419; Dobbins v. Erie County, 16 Pet.
435.
The power to create carries with it the power to preserve.
The latter is a corollary from the former. [Italics
supplied.]
In Davis v. Elmira Savings Bank (1896), 161
U. S. 275, 16 Sup. Ct. 502, the same question
arose in another form. The Legislature of the
State of New York provided by law that a
savings bank organized under the laws of that
State should have a preference as a depositor
in other banks in case of the insolvency of the
latter, and it was sought to apply this provision
to the case of a deposit by a savings bank in a
national bank which had subsequently become
insolvent. The Supreme Court of the United
States held that such a provision of a State law
could not apply to national banks, because it
was in conflict with that provision of the
national bank act which requires the assets of
an insolvent national bank to be distributed
ratably among its creditors. In so holding, the
court said (p. 503):
National banks are instrumentalities of the Federal
Government, created for a public purpose, and as such
necessarily subject to the paramount authority of the
United States. It follows that an attempt by a State to
define their duties or control the conduct of their affairs is
absolutely void, wherever such attempted exercise of authority expressly conflicts with the laws of the United States,
MARCH, 193a
and either frustrates the purpose of the national legislation
or impairs the efficiency of these agencies of the Federal
Government to discharge the duties, for the performance of
which they were created. These principles are axiomatic,
and are sanctioned by the repeated adjudications of this
court. [Italics supplied.]
In Easton v. Iowa (1903), 188 U. S. 220, 23
Sup. Ct. 288, Easton, the president of a
national bank was convicted in the State court
under a State law making it a crime to receive
deposits while the bank was insolvent. On
appeal, the Supreme Court of the United States
held that the State law had no application to a
national bank. In so holding, the court said
(pp. 290, 293):
* * * the Federal legislation creating and regulating national banks * * * has in view the erection
of a system extending throughout the country, and independent, so far as powers conferred are concerned, of
State legislation which, if permitted to be applicable,
might impose limitations and restrictions as various and
as numerous as the States. Having due regard to the
national character and purposes of that system, we can not
concur in the suggestions that national banks, in respect
to the powers conferred upon them, are to be viewed a&
solely organized and operated for private gain. The
principles enunciated in McCulloch v. Maryland, 4
Wheat. 316, 425, and in Osborn v. United States Banky
9 Wheat. 788, though expressed in respect to banks incorporated directly by acts of Congress, are yet applicable to
the later and present system of national banks.
*
*
*
*
*
*
*
Our conclusions, upon principle and authority, are
that Congress, having power to create a system of
national banks, is the judge as to the extent of the
powers which should be conferred upon such banks, and
has the sole power to regulate and control the exercise
of their operations; * * * that it is not competent for
State legislatures to interfere, whether with hostile or
friendly intentions, with national banks or their officers
in the exercise of the powers bestowed upon them by the
general government. [Italics supplied.]
Having been denied the right to impose
limitations and restrictions upon national
banks, the States have granted increasingly
liberal powers to competing State banks and,
in many instances, have subjected them to
fewer restrictions and less effective regulation
and supervision. This has led Congress to
modify the safeguards contained in the original
national bank act, in order to enable national
banks to compete with State banks and thus to
preserve the existence of the national banking
system. Such competition between the Federal Government and the various States has led
to more and more laxity in bank regulation and
supervision.
Moreover, when Congress has undertaken to
enact legislation designed to "provide for the
safer and more effective use of the assets of
national banking associations " it has been told
that the proposed legislation would make it
difficult for national banks to compete with
MARCH, 1933
FEDERAL RESERVE BULLETIN
State banks and would cause national banks to
reorganize as State banks.
Since "it is not competent for State legislatures to interfere * * * with national
banks or their officers in the exercise of the
powers bestowed
upon them by the general
government,7' they can not do so indirectly
by granting State banks competitive advantages; and, if the competition of State banks
interferes with the safe and effective operation
of national banks, Congress can put an end to
such interference with the national purpose by
preventing State banks from competing with
national banks for commercial banking business.
First National Bank v. Lnion Trust Co.
(1917), 244 U. S. 416, 37 Sup. Ct. 734, turned
upon the constitutionality of section 11 (k) of
the Federal reserve act, which granted to
national banks the right to act, in certain
circumstances, as trustees, executors and
administrators. It was contended that, unlike
the business of banking, there was no natural
connection or relationship between acting in
these capacities and carrying on the fiscal
operations of the Federal Government and
that, moreover, the legislation constituted a
direct invasion of the sovereignty of the States,
which control not only the devolution of the
estates of deceased persons and the conduct of
private business within the States, but as well
the creation of corporations and the qualifications and duties of such as may engage in the
business of acting as trustees, executors and
administrators. The Supreme Court of the
United States, however, took cognizance of
the fact that Congress had authorized national
banks to act in these capacities in order to
enable them to compete with State corporations which were authorized to transact such
business in connection with their banking
business; and, therefore, the court sustained
the constitutionality of the law.
In rendering the opinion of the court on this
question, Chief Justice White reviewed the
earlier decisions of the Supreme Court in the
cases of McCulloch v. Maryland and Osborn v.
Bank and said (p. 737):
* * * What those cases established was that
although a business was of a private nature and subject to State regulation, if it was of such a character as
to cause it to be incidental to the successful discharge
by a bank chartered by Congress of its public functions,
it was competent for Congress to give the bank the
power to exercise such private business in cooperation
with or as part of its public authority. Manifestly
this excluded the power to the State in such case,
although it might possess in a general sense authority
to regulate such business, to use that authority to
prohibit such business from being united by Congress
171
with the banking function, since to do so would be
but the exertion of State authority to prohibit Congress
from exerting a power which, under the Constitution,
it had a right to exercise. From this it must also
follow that even although a business be of such a
character that it is not inherently considered susceptible
of being included by Congress in the powers conferred
on national banks, that rule would cease to apply if, by
State law, State banking corporations, trust companies, or others which, by reason of their business, are
rivals or quasi rivals of national banks, are permitted
to carry on such business. This must be, since the
State may not by legislation create a condition as to a
particular business which would bring about actual or
potential competition with the business of national banks,
and at the same time deny the power of Congress to meet
such created condition by legislation appropriate to avoid
the injury which otherwise would be suffered by the
national agency. [Italics supplied.]
Likewise, the States may not, by granting increasingly liberal powers to State banks and
trust companies, create a competitive situation
that makes it impossible for Congress to preserve the existence of the national banking
system without removing the safeguards necessary to make it a safe and effective system and
at the same time deny the right of Congress to
meet the situation by putting an end to such
competition.
In the case of State of Missouri v. Duncan
(1924), 265 U. S. 17, 44 Sup. Ct. 427, the
Burnes National Bank of St. Joseph, Mo., being
duly authorized to act as executor by a permit
issued by the Federal Reserve Board under the
provisions of section 11 (k) of the Federal
reserve act, was named as executor by a citizen
of Missouri who died leaving a will. The bank
applied to the probate court for letters testamentary but was denied appointment on the
ground that national banks were not permitted
to act as executors under the laws of Missouri.
Thereupon, the national bank applied to the
supreme court of the State for a writ of mandamus to require the judge of the probate court
to issue letters testamentary. The Supreme
Court of Missouri denied a writ of mandamus
and an appeal was taken to the Supreme Court
of the United States, which reversed the opinion
of the State court and held that the probate
court had no right to deny the national bank
letters testamentary.
After quoting the second paragraph of section
11 (k) of the Federal reserve act, as amended by
the act of September 26, 1918 (40 Stat. 967),
the Supreme Court said, through Mr. Justice
Holmes (pp. 23, 24):
* * * This says in a roundabout and polite but
unmistakable way that whatever may be the State
law, national banks having the permit of the Federal
Reserve Board may act as executors if trust companies
competing with them have that power. The relator
has the permit, competing trust companies can act as
172
FEDERAL RESERVE BULLETIN
MARCH, 1933
executors in Missouri, the importance of the powers to the system. Moreover, when it is necessary in order to
the sustaining of competition in the banking business prevent an evil to make the law embrace more than
is so well known and has been explained so fully here- the precise thing to be prevented, it may do so. It
tofore that it does not need to be emphasized, and thus may punish the forgery and utterance of spurious interthe naked question presented is whether Congress had state
the bills of lading in order to protect the genuine
power to do what it tried to do.
commerce. United States v. Ferger, 250 U. S. 199.
See further Southern Ry. Co. v. United States, 222 U. S.
*
*
*
*
#
The States can not use their most characteristic 20, 26. That principle is settled. Finally Congress
powers to reach unconstitutional results. Western may employ State corporations with their consent as
Union Telegraph Co. v. Kansas, 216 U. S. 1. Pullman instrumentalities of the United States, Clallam County
Co. v. Kansas, 216 U. S. 56. Western Union Telegraphv. United States, 263 U. S. 321, and may make frauds
Co. v. Foster, 247 U. S. 105, 114. There is nothing that impair their efficiency crimes. United States v.
over which a State has more exclusive authority than Walter, 263 U. S. 15. [Italics supplied.]
the jurisdiction of its courts, but it can not escape its
If Congress can go to that length in order to
constitutional obligations by the device of denying
jurisdiction to courts otherwise competent. Kenney protect the Federal reserve system from a
v. Supreme Lodge of the World, 252 U. S. 411, 415.
relatively minor danger, it can relieve the
Nor would it seem that the States, through
the exercise of their power to charter banks,
can maintain a situation which impairs the
efficiency of the national banking system and
the Federal reserve system. The power to
create these systems includes the power to
preserve them; and Congress can eliminate
the ruinous competition that now exists between
the national banking system and the 48 State
banking systems if it finds it necessary to do as
a means of preserving the efficacy of its own
instrumentalities.
In Westfall v. Lnited States (1927), 274 U. S.
256, 47 Sup. Ct. 629, the defendant, who was
not even an official of any member bank of the
Federal reserve system, was indicted for aiding
and procuring a branch manager of a State
bank which was a member of the Federal
reserve system to misapply the funds of the
bank in violation of a provision of section 9 of
the Federal reserve act. He attacked the
constitutionality of the Statute on the ground
that Congress had no power to punish offenses
against the property rights of State banks and
that the statute is so broad that it covers such
offenses when they would not result in any loss
to the Federal reserve bank. The Supreme
Court of the United States, however, held that
the statute was constitutional and said (p. 258):
serve system from the greater danger of having
the efficiency and safety of its operations impaired by such competition. If, in order to
accomplish this object, it deems it appropriate
to restrict the transaction of a commercial
banking business to national banks, which are
required to be members of the Federal reserve
system, Congress clearly has the right to do so.
A brief review of the history of Federal
banking legislation will disclose that Congress
already has made two attempts to create a
unified banking system for the United States
and that, in the language of Mr. Justice Holmes
in State of Missouri v. Duncan, "The naked
question presented is whether Congress has the
power to do what it tried to do."
When it enacted the national bank act,
Congress recognized that banking is a matter of
national public interest and attempted to
create a unified banking system under Federal
supervision. As will be shown in more detail
hereinafter, the act of March 3, 1865, which
imposed a prohibitive tax on the circulating
notes of State banks, was intended not only to
provide a uniform currency but also to compel
State banks to convert into national banks. It
succeeded in eliminating State bank currency
and almost succeeded in eliminating State
banks; but the State banks overcame the handicap of not being able to issue currmcy and
multiplied in number until, by 1910, their
number was almost twice that of national banks*
By the enactment of the Federal reserve act
of December 23, 1913, Congress made another
attempt to create a unified banking system, by
requiring all national banks in the continental
United States to become members of the Federal
reserve system and inviting State banks to do
so voluntarily. This object was recognized by
the Federal Keserve Board in a circular issued
on June 7, 1915, and published in the FEDEEAL
So here—the State can not lay hold of its general control member banks of that system of the competition
of administration to deprive national banks of their
power to compete that Congress is authorized to sus- of nonmember banks for commercial banking
business, in order to protect the Federal retain. [Italics supplied.]
* * * And if a State bank chooses to come into the
system created by the United States, the United States
may punish acts injurious to the system, although
done to £ corporation that the State also is entitled to
protect. The general proposition is too plain to need
more than statement. That there is such a system
and that the reserve banks are interested in the solvency and financial condition of the members also is
too obvious to require a repetition of the careful
analysis presented by the Solicitor General. The only
suggestion that may deserve a word is that the
statute applies indifferently whether there is a loss to
the reserve banks or not. But every fraud like the one
before us weakens the member bank and therefore weakens
FEDEKAL RESERVE BULLETIN
MARCH, 1933
173
Moreover, at the peak of State bank memberfor July, 1915, at page 145,
ship, which occurred on June 30, 1922, there
wherein the board said:
A unified banking system, embracing in its member- were only 1,648 State banks and trust comship the well-managed banks of the country, small and panies which were members of the Federal
large, State and national, is the aim of the Federal reserve system out of a total of approximately
reserve act. There can be but one American credit 20,000 State banks and trust companies in the
system of nation-wide extent, and it will fall short of country; and the member State banks and
satisfying the business judgment and expectation of
the country and fail of attaining its full potentialities trust companies held only 51 per cent of the
if it rests upon an incomplete foundation and leaves out total resources of all State banks and trust
of its membership any considerable part of the banking companies. (Ann. Rep. F. R. Board, 1922,
strength of the country.
p. 29; Ann. Rep. Comp. Cur., 1931, pp. 3, 5.)
When we entered the Great War, however, And on June 30, 1932, there were only 835
only 53 State banks with resources aggregating State member banks and trust companies in
$756,000,000 had become members of the the Federal reserve system.
Furthermore, the amendments of June 21,
Federal reserve system; and, in order to induce
additional State banks to become members, 1917, which were enacted in order to induce
so that the financial resources of the Nation State banks to become members of the Federal
might be mobilized for the great struggle then reserve system voluntarily, had greatly weakconfronting it, Congress made a number of ened the control of the Federal Government
concessions which materially diminished its over State member banks; the successive
own control over State member banks of the amendments to the national bank act, which
were intended to enable national banks to comFederal reserve system.
By the act of June 21, 1917 (40 Stat. 232), it pete more effectively with State banks, had
eliminated the requirements of the original materially lowered the standard previously
act; the "better
Federal reserve act that State member banks set by the national bank
77
must comply with the loan limitations of the supervision of banking, which is one of the
national bank act and must be examined at major purposes of the Federal reserve act, had
least twice a year by the Comptroller of the been seriously impeded; and the 10 years 1921
Currency and provided that, subject to the to 1931 witnessed numerous failures of State
provisions of the Federal reserve act and the member banks and a larger number of failures
regulations of the Federal Reserve Board made of national banks than had occurred previously
pursuant thereto, such banks should retain in the entire history of the national banking
their full charter and statutory rights as State system from 1863 to 1921.
Mr. Eugene Meyer, then managing director
banks or trust companies and might continue
to exercise all corporate powers granted by the of the War Finance Corporation, made the
following statement on January 31, 1923, in
States in which they were created.
On October 13, 1917, the President of the testifying before the Committee on Banking
United States appealed to the State banks and and Currency of the House of Representatives
trust companies to become members of the (Hearings on S. 4280, 67th Cong., Pt. I, p. 56):
Federal reserve system for patriotic purposes,
There are necessarily many difficulties involved in
saying that, "The extent to which our country our dual system of banking. We have a State banking
a national banking system, and a Federal
can withstand the financial strains for which system,
reserve system, the latter having a membership derived
we must be prepared will depend very largely from
both the State and the national systems. The
upon the strength and77staying power of the State banking departments supervise the State banks^
Federal reserve banks.
(Ann. Rep. F. R. and the Comptroller of the Currency supervises the
national banks, while the Federal reserve system has
Board, 1917, p. 9.)
a supervision of its own for the member banks, and
Notwithstanding these concessions by Con- there
has been at times some disposition to competigress and this appeal of President Wilson, tion between the State and the national banking
however, there were only 936 State member systems.
The State banking laws frequently permit practices
banks with resources aggregating $7,338,813,000 which
national banks can not legally engage in. This
in the Federal reserve system on January 1, is creating
competition between the two systems which
1919. Only 11 per cent of the State banks had can not be regarded as wholesome and may lead to the
become members of the Federal reserve sys- gradual weakening of both. * * * The competithat exists at the present time between State and
tem, and these banks held only 54.5 per cent tion
banks can not fail to remind one of the comof the resources of all State banks and trust national
petition that prevailed a generation ago among the
companies in the country. (Ann. Rep. F. R. various States seeking to become domiciles for corporations—a competition that was based upon the
Board, 1918, pp. 26 and 27.)
RESERVE BULLETIN
161485—33
5
174
FEDERAL RESERVE BULLETIN
MARCH, 1933
laxity of the laws governing incorporation. Nothing officials in interpreting the laws. The national banking
could be more disastrous than competition between the act has to compete not only with the most conservative
State and national banking groups, based upon competi- States but the most liberal ones. Consequently,
tion in laxity. [Italics supplied.]
there has been a constant tendency to liberalize banking
laws and to weaken their administration. In such
In testifying before the Committee on Ways cases the argument is always made that it is desirable
and Means of the House of Representatives on to liberalize the law so as to enable the banks to be of
April 27 and 28, 1932, in his capacity as great service to borrowers.
The first question always regarding banks doing a
governor of the Federal Reserve Board and demand
deposit business should be the safety of the
chairman of the board of directors of the deposits and the ability of the bank to return them to
Reconstruction Finance Corporation and in the depositors instantly on request, unless they be time
light of his experience as managing director of deposits. No thought of service to borrowers should
be permitted to impair the safety and security of dethe War Finance Corporation, Mr. Eugene posits.
Banks of deposit are, after all, primarily cusMeyer discussed this subject again. (Hearings todians of liquid funds. Only such use of such funds
re payment of adjusted service certificates, 72d should be permitted as may be consistent with the
Cong., 1st sess., pp. 631, 642, 643). His interests of the depositors.
In the early years of our Government, our business
testimony was, in part, as follows:
was largely done by currency moving from hand to
Personally I feel, as I stated to a subcommittee of the hand. It was felt at that time, and properly so, that
Banking and Currency Committee the other day, that we should have a national and uniform currency.
we will never have a satisfactory banking system in the Consequently, Congress was given power to coin money
United States until banks of deposit, commercial banks, and regulate the value thereof. This power was made
can be gathered under one chartering, supervising, effective as to paper money by the national bank act.
and regulatory power. The constant competion be- Now our business is carried on mostly by transfers of
tween State and national banking systems has resulted bank deposits, currency forming only a small part of
in a weakening of the laws and the safeguards of both our money transfers. If control of our currency were
systems which I think contributed in no small degree necessary in the beginning by the Federal Government,
to the excesses of the inflation period and to the suffer- control of our bank deposits by it now would seem deing of the deflation period. The minds of the com- sirable. We have transferred, either affirmatively of
mittees charged with banking and currency responsi- by acquiescence, many powers to the Federal Government which ought not to be there. I am bitterly opbilities are engaged in studying this problem.
posed to the impairment of the rights of the States in
*
*
*
*
*
*
*
their appropriate field. It does seem strange, howI am entirely in favor of maintaining State rights to ever, that in the face of such gravitation toward Federal
the extent that they can properly be maintained. But authority, we should have retained divided rather than
there are various functions over which the Federal unified power over our deposit banking system.
Government has had to assume jurisdiction. We have
Except for the currency in our pockets, our banks of
the Postal Service and have had it since the beginning deposit
hold the liquid capital of the people of the
of the Government. As other activities become United States.
transfer of this capital from one
national and interstate on a greater scale, I feel that of us to another, The
promptly and safely, should be faciliwe must take account of these changed conditions. tated. That means,
however, that every bank of deWe must have elasticity in our conception of decentraliis truly engaged in a national business. Its soundzation and the advantage of local control when there posit
and safety is of concern to our people everywhere.
are vital changes in financial and economic conditions. ness
Our business of deposit banks is not local in character;
This subject was also discussed by Mr. Owen it is, and should be, national. Therefore, in my judgby the national law.
D. Young, deputy chairman of the Federal ment, *it should* be governed
*
*
*
Reserve Bank of New York, in his testimony
I
should
hope,
sir,
that
you
might
find
way to bring
before the subcommittee of the Senate Com- all State banks holding themselves out toado
a national
mittee on Banking and Currency on February business and carrying demand deposits into the Federal
4, 1931. (Hearings pursuant to Senate Resolu- reserve system by compulsion.
tion No. 71 of the 71st Cong., pp. 353 et seq.)
Having failed to accomplish fully its purposes
He said:
by creating the Federal reserve system and
I want to say, first, Mr. Chairman, * * * that inviting State banks to become members
all commercial deposit banking in the United States voluntarily and by modifying the safeguards
should be carried on under one law, that examinations
of banks and their control should be under one authori- contained in the national bank act and the
ty. Their reserves should be mobilized in the Federal Federal reserve act, in order to encourage the
reserve system. Then we could develop for the country organization of national banks and to induce
as a whole a sound banking system, and definitely fix State banks to become members of the Federal
responsibility. That would mean that all banks of reserve system, Congress may resort to other
deposit, as distinguished from savings, should be
measures. It can abandon inducement and
national banks.
As it is now, banks are chartered both by the resort to compulsion. In other words, it can
National Government and by each of the 48 States. prevent the transaction of a commercial bankThey are in competition, each endeavoring to offer
the most attractive charters and the most liberal laws, ing business except by national banks, which
to say nothing of the liberality of administrative must be members of the Federal reserve system.
MARCH, 1933
FEDERAL RESERVE BULLETIN
That Congress has the power to adopt this
means to accomplish its great objects follows
necessarily from the fundamental principles
established by the Supreme Court of the
United States in its decision in the case of
McCulloch v. Maryland and the other cases
discussed a,bove; but there are also other reasons and additional authorities for this conclusion.
II. THE POWER TO PROVIDE A NATIONAL CURRENCY
A separate and independent ground for the
above conclusion and an effective method of
bringing all commercial banking into the national banking system is found in the measures
adopted by Congress to provide a national
currency for the Nation and in the decisions of
the Supreme Court regarding the constitutionality of such measures.
By the act of March 3, 1865 (13 Stat. 484),
later reenacted as the Act of July 13, 1866
(14 Stat. 146), Congress imposed a tax of 10 per
cent on the circulating notes of State banks
paid out by National or State banks. The
avowed purpose of this legislation was to create
a uniform currency by driving the circulating
notes of State banks out of existence and, if
necessary, by driving all State banks into the
national banking system; and the Supreme
Court of the United States upheld its constitutionality. Veazie Bank v. Fenno (1869), 8
Wall. 533, 19 L. Ed. 482.
How near this legislation came to creating a
unified banking system is indicated by the fact
that up to November 15, 1864, there were only
584 national banks with capital aggregating
$81,961,450 and, by October 1, 1865, there were
1,566 national banks capitalized at $276,219,450.
In 1862, prior to the passage of the national
bank act, there were 1,492 State banks; in
July, 1864, there were 467 national banks and
1,089 State banks; in 1865, there were 1,294
national banks and 349 State banks; in 1866,
there were 1,634 national banks and 297 State
banks; and by 1868, the number of State banks
fell to 247, the lowest figure for any time since
1857. (Report, National Monetary Commission, vol. 5, pp. 22, 103; Annual Report, Comp.
Cur., 1931, p. 3.)
It is appropriate, therefore, to examine in
this connection not only the legal basis for the
decision of the Supreme Court in the case of
Veazie Bank v. Fenno, but also the circumstances giving rise to that opinion. While the
situation then confronting Congress assumed a
different form, the problem of the Sixties and
175
the method of its solution furnish a guide to
the method of dealing with the problem of
effecting desirable reforms in our present banking system.
In his report to Congress dated November 28,
1863, (p. 57) the Comptroller of the Currency
said:
* * * The idea that the national banks can not
supersede the State banks without breaking them down
and ruining their stockholders is an erroneous one, and
can only be honestly entertained by those who have
not carefully considered the subject or noticed the
process of conversion, which has changed some banks
in the West, and is changing others in the East, from
one system to the other. No war is being waged, or is
intended to be waged, by the national system upon
State institutions. So far from it, it opens the way by
which the interests of stockholders can be protected, at
the same time that the character of their organizations
is changed.
* * * The amount of losses which the people
have sustained by insolvent State banks, and by the
high rate of exchanges—the result of a depreciated
currency—can hardly be estimated. That some of the
new States have prospered, notwithstanding the vicious
and ruinous banking systems with which they have
been scourged, is evidence of the greatness of their
resources and the energy of their people. The idea has
at last become quite general among the people that the
whole system of State banking, as far as circulation is
regarded, is unfitted for a commercial country like ours.
The United States is a nation as well as a union of
States. Its vast railroad system extends from Maine
to Kansas, and will soon be extended to the Pacific
Ocean. Its immense trade is not circumscribed by
State lines, nor subject to State laws. Its internal
commerce is national, and so should be its currency.
At present some 1,500 State banks furnish the people
with a bank-note circulation. This circulation is not
confined to the States by which it is authorized, but is
carried by trade or is forced by the banks all over the
Union. People receive it and pay it out, scarcely
knowing from whence it comes or in what manner it is
secured. Banks have been organized in some States
with a view to lending their circulation to the people of
others. Probably not one-quarter of the circulation of
the New England banks is needed or used in New
England—the balance being practically loaned to other
States. The national currency system is intended to
change this state of things, not by a war upon the State
banks, but by providing a means by which the circulation which is intended for national use shall be based
upon national securities through associations organized
under a national law. [Italics supplied.]
In his report of November 25, 1864, (p. 54)/
the Comptroller of the Currency said :
As long as there was any uncertainty in regard to the
success of the national banking system, or the popular
verdict upon its merits and security, I did not feel at
liberty to recommend discriminating legislation against
the State banks. It is for Congress to determine if
there is any longer a reasonable uncertainty on these
points, and if the time has not arrived when all these
institutions should be compelled to retire their circulation. It is indispensable for the financial success of
the Treasury that the currency of the country should be
under the control of the Government. This can not
be the case as long as State institutions have the right
176
FEDERAL RESERVE BULLETIN
MABCH, 1933
to flood the country with their issues. As a system demption has seriously affected the value of our curhas been devised under which State banks, or at least rency. The national banks were intended to supersede
as many of them as are needed, can be reorganized, so the State banks. Both can not exist together; yet, while
that the Government can assume a rightful control the national system is extending, the issues of State
over bank-note circulation, it could hardly be con- banks have not materially decreased. Indeed, many
sidered oppressive if Congress should prohibit the local banks have been converted into national banks,
further issue of bank notes not authorized by itself, and yet carefully keep out their State circulation.
and compel, by taxation, (which should be sufficient to They exact interest from the people on this circulation,
effect the object without being oppressive), the with- and yet avail themselves of the benefits of the new sysdrawal of those which have been already issued. My tem. They transfer their capital to national banks,
own opinion is, that this should be done, and that the issue new circulation upon it, and yet studiously keep
sooner it is done the better it will be for the banks out the old. They issue two circulations upon the
themselves and for the public. As long as the two same capital. It is far better at once to abandon the
systems are contending for thefield,(although the result
national banking system than to leave it as a cloak for
of the contest can be no longer doubtful), the Government
outstanding State issues.
can not restrain the issue of paper money; and as the
If the State banks have power enough in Congress to
preference which is everywhere given to a national prolong their existence beyond the present year, we
currency over the notes of the State banks indicates had better suspend the organization of national banks.
what is the popular judgment in regard to the merits As the first friend of this measure in the Senate, I would
of the two systems, there seems to be no good reason vote today for its repeal rather than allow it to be the
why Congress should hesitate to relieve the Treasury agency under which State banks can inflate our curof a serious embarrassment, and the people of an rency. And the power of taxation can not be more wisely
unsatisfactory circulation. [Italics supplied.]
exercised than in harmonizing and nationalizing and
placing on the secure basis of national credit all the money
The circumstances giving rise to the enact- of the country. [Italics supplied.]
ment of the act of March 3, 1865, and the
purposes sought to be accomplished thereby
were graphically described by Senator Sherman, Chairman of the Finance Committee,
when he reported the bill to the Senate on
February 27, 1865. His entire speech is
worthy of careful study; but the following
quotations will suffice. (Congressional Globe,
38th Cong., 2d Sess., pp. 1138, 1139.)
The various legislative steps leading up to
the passage of the act of July 13, 1866, were
stated as follows in the opinion of the Supreme
Court in the case of Veazie Bank v. Fenno by
Mr. Chief Justice Chase, who had been Secretary of the Treasury during the events related
(8 Wall. 536-540):
At the beginning of the rebellion the circulating meThe people of the United States having definitely de- dium consisted almost entirely of bank notes issued by
numerous
independent corporations variously organtermined to prosecute war, it only remained for Congress to provide the ways and means to carry it on ized under State legislation, of various degrees of credit,
* * * I still think that with parsimonious economy and very unequal resources, administered often with
and heavy taxes from the beginning, we might have great, and not unfrequently with little skill, prudence
borrowed money enough on a specie basis to have and integrity. The acts of Congress, then in force, proavoided a suspension of specie payments; but when it hibiting the receipt or disbursement, in the transactions
came we were without a currency and without a system of the National government, of anything except gold
of taxation. Gold disappeared and was hoarded by and silver, and the laws of the States requiring the rebanks and individuals. It flowed in a steady stream demption of bank notes in coin on demand, prevented
from our country. By the Sub-Treasury act we could the disappearance of gold and silver from circulation.
not use the irredeemable bills of State banks, and with There was, then, no national currency except coin;
the terrible lessons of 1815 and 1837 staring us in the there was no general regulation of any other by national
face, no one was bold enough to advise us to make as alegislation; and no national taxation was imposed in
any form on the State bank circulation.
standard of value the issues of 1,500 banks founded upon
as many banking systems as there were States. Under The first act authorizing the emission of notes by the
Treasury Department for circulation was that of July
these circumstances we had but one resource.
We had to borrow vast sums, and as a means to do it 17, 1861. The notes issued under this act were treaswe had to make a currency. This was done by the ury notes, payable on demand in coin. * * *
On the 31st of December, 1861, the State banks
issue of United States notes. Subsequently, to unite
the interests of private capital with the security of the suspended specie payment. Until this time the exGovernment as a basis of banking, we established a penses of the war had been paid in coin, or in the desystem of national banks, and upon this currency, as a mand notes just referred to; and, for some time aftermedium for collecting taxes and borrowing money, have wards, they continued to be paid in these notes, which,
waged a war unexampled in the grandeur of its opera- if not redeemed in coin, were received as coin in the
tions, and, as I trust, soon to be crowned with uncondi- payment of duties.
Subsequently, on the 25th of February, 1862, a new
tional success.
policy became necessary in consequence of the suspen*
*
*
*
*
the condition of the country, and was
A still more important feature of this bill is the sec sion and ofThe
notes hitherto issued, as has just been
tion to compel the withdrawal of State bank notes. As adopted.
stated, were called Treasury notes, and were payable on
the volume of currency affects the price of all commodi- demand
in coin. The act now passed authorized the
ties, I have no doubt the amount of such paper money issue of bills
circulation under the name of United
now outstanding adds to the cost of our purchases States notes,formade
to bearer, but not ex$50,000,000. The refusal of Congress, at the last pressed to be payable payable
on demand, * * *.
session, to pass restrictive measures to compel its re-
MARCH, ]
FEDERAL RESERVE BULLETIN
This currency, issued directly by the Government
for the disbursement of the war and other expenditures, could not, obviously, be a proper object of taxation.
But on the 25th of February, 1863, the act authorizing national banking associations was passed, in which,
for the first time during many years, Congress recognized the expediency and duty of imposing a tax upon
currency. By this act a tax of 2 per cent annually was
imposed on the circulation of the associations authorized by it. Soon after, by the act of March 3d, 1863, a
similar but lighter tax of 1 per cent annually was imposed on the circulation of State banks, in certain proportions to their capital, and of 2 per cent on the excess;
and the tax on the national associations was reduced to
the same rates.
At a later date, by the act of June 3d, 1864, which
was substituted for the act of February 25th, 1863,
authorizing national banking associations, the rate of
tax on circulation was continued and applied to the
whole amount of it, and the shares of their stockholders
were also subjected to taxation by the States; and a
few days afterwards, by the act of June 30,1864, to provide ways and means for the support of the Government, the tax on the circulation of the State banks was
also continued at the same annual rate of 1 per cent as
before, but payment was required in monthly installments of one-twelfth of 1 per cent with monthly reports
from each State bank of the amount in circulation.
It can hardly be doubted that the object of this provision was to inform the proper authorities of the exact
amount of paper money in circulation, with a view to its
regulation by law.
* * * The act just referred to was * * *
followed some months later by the act of March 3d,
1865, amendatory to the prior internal revenue acts, the
sixth section of which provides, "that every national
banking association, State bank or State banking association, shall pay a tax of 10 per centum on the amount
of the notes of any State bank, or State banking association, paid out by them after the 1st day of July, 1866."
The same provision was reenacted, with a more
extended application, on the 13th of July, 1866, in these
words: "Every national banking association, State
bank, or State banking association, shall pay a tax of 10
per centum on the amount of notes of any person, State
bank, or State banking association used for circulation,
and paid out by them after the first day of August, 1866,
and such tax shaU be assessed and paid in such manner
as shall be prescribed by the Commissioner of Internal
Revenue."
The constitutionality of this last provision is now
drawn in question, and this brief statement of the
recent legislation of Congress has been made for the
purpose of placing in a clear light its scope and bearing,
especially as developed in the provisions just cited.
It will be seen that when the policy of taxing bank
circulation was first adopted in 1863, Congress was
inclined to discriminate for, rather than against, the
circulation of the State banks; but that when the
country had been sufficiently furnished with a national
currency by the issues of United States notes and of
national bank notes, the discrimination was turned,
and very decidedly turned, in the opposite direction.* ^
Let us consider the present problem in the
light of past experience: By the revenue act
of 1932, approved June 6, 1932, Congress
recently imposed a tax of 2 cents on each
177
check, without making any distinction between
checks drawn on State banks and those drawn
on national banks. Is there any reason why
Congress could not increase this tax to 10 per
cent of the amount of each check but exempt
therefrom the checks drawn upon national
banks and Federal reserve banks, the instrumentalities which it has created to aid the
Government in the performance of certain
important functions?
While there are other grounds for holding
that Congress could do so, adequate grounds
for such a conclusion are contained in the
reasons given by Mr. Chief Justice Chase for
the court's decision in the case of Veazie
Bank v. Fenno.
After disposing of the contentions that the
tax was a direct tax and had not been apportioned among the States, as required by the
Constitution, and that the act imposing the
tax impaired a franchise granted by the State,
which it was urged Congress had no right to
do, he stated and disposed of the principal
question as follows (8 Wall. 548-550):
It is insisted, however, that the tax in the case before
us is excessive, and so excessive as to indicate a purpose
on the part of Congress to destroy the franchise of the
bank, and is, therefore, beyond the constitutional
power of Congress.
The first answer to this is that the judicial can not
prescribe to the legislative departments of the Government limitations upon the exercise of its acknowledged
powers. The power to tax may be exercised oppressively upon persons, but the responsibility of the legislature is not to the courts, but to the people by whom its
members are elected. So if a particular tax bears
heavily upon a corporation, or a class of corporations,
it can not, for that reason only, be pronounced contrary
to the Constitution.
But there is another answer which vindicates equally
the wisdom and the power of Congress.
It can not be doubted that under the Constitution
the power to provide a circulation of coin is given to
Congress. And it is settled by the uniform practice
of the Government and by repeated decisions, that Congress may consitutionally authorize the emission of
bills of credit. It is not important here to decide
whether the quality of legal tender, in payment of
debts, can be constitutionally imparted to these bills;
it is enough to say, that there can be no question of the
power of the Government to emit them; to make them
receivable in payment of debts to itself; to fit them
for use by those who seefitto use them in all the transactions of commerce; to provide for their redemption;
to make them a currency, uniform in value and description, and convenient and useful for circulation. These
powers, until recently, were only partially and occasionally exercised. Lately, however, they have been called
into full activity, and Congress has undertaken to
supply a currency for the entire country.
The methods adopted for the supply of this currency
were briefly explained in the first part of this opinion.
It now consists of coin, of United States notes, and of
the notes of the national banks. Both descriptions of
notes may be properly described as bills of credit, for
178
FEDERAL RESERVE BULLETIN
MARCH, 1933
both are furnished by the Government; both are issued reserve system, Congress may constitutionally
on the credit of the Government; and the Government is
responsible for the redemption of both; primarily as to adopt this means and the courts will not interthe first description, and immediatly upon default of fere; because the degree of the necessity for the
the bank, as to the second. When these bills shall be enactment of such legislation is a question of
made convertible into coin, at the will of the holder, legislative discretion, not of judicial cognithis currency will, perhaps, satisfy the wants of the zance. McCulloch v. Maryland.
community, in respect to a circulating medium, as
At one time it was contended that Congress
perfectly as any mixed currency that can be devised.
Having thusf in the exercise of undisputed constitu-is not authorized to provide the people of the
tional powers, undertaken to provide a currency for the
United States with a national currency, that the
whole country, it can not be questioned that Congress may,
only
power of this general character granted to
constitutionally, secure the benefit of it to the people it
by was the power to coin money and regulate
appropriate legislation. To this end, Congress has
denied the quality of legal tender to foreign coins, and the value thereof, and that this power is conhas provided by law against the imposition of counter- fined to matters pertaining to metallic money.
feit and base coin on the community. To the same end,
Such an argument was answered, however,
Congress may restrain, by suitable enactments, the
circulation as money of any notes not issued under its in the decision of the Supreme Court of the
own authority. Without this power, indeed, its at- United States in the Legal Tender Cases (1871),
tempts to secure a sound and uniform currency for the 12 Wall. 457, 20 L. Ed. 287, wherein the
country must be futile.
Supreme Court upheld the validity of certain
Viewed in this light, as well as in the other light of a
duty on contracts or property, we can not doubt the acts of Congress making United States notes
constitutionality of the tax under consideration. and Treasury notes legal tender for the payment
[Italics supplied.]
of debts. In that case, the court, speaking
Likewise, having undertaken to provide an
elastic currency for the country by enacting
the Federal reserve act, which authorized the
issuance of Federal reserve notes thrQugh the
Federal reserve banks, Congress may constitutionally secure the benefit of that currency to
the people by appropriate legislation.
Federal reserve notes are secured by the
assets of Federal reserve banks; and the
Federal reserve banks depend largely upon their
member banks to furnish the assets required
for this purpose. They derive all their capital
from subscriptions by member banks to their
capital stock and most of their deposits consist
of the legal reserves deposited with them by
their member banks.
In normal times, Federal reserve notes are
secured largely by eligible paper acquired by
the Federal reserve banks from their member
banks, and, as pointed out by the Federal
Reserve Board in the circular quoted in part
above, the Federal reserve act contemplated
the creation of a banking system which would
include most, if not all, of the commercial banks
in the country.
This result not having been accomplished by
the methods heretofore adopted, it would seem
clear that Congress has the power to enact
appropriate legislation in order to preserve for
the Nation the full benefits of the flexible currency which it undertook to provide by the
enactment of the Federal reserve act. If it
finds that, in order to accomplish this purpose,
it is necessary to prevent the transaction of a
commercial banking business except by national
banks, which must be members of the Federal
through Mr. Justice Strong, said (544-546):
It is not easy to see why, if State bank notes can be
taxed out of existence for the purposes of indirectly
making United States notes more convenient and useful
for commercial purposes, the same end may not be
secured directly by making them a legal tender.
* * * The Constitution was intended to frame a
government as distinguished from a league or compact,
a government supreme in some particulars over States and
people. It was designed to provide the same currency,
haying a uniform legal value in all the States. It was for
this reason the power to coin money and regulate its value
was conferred upon the Federal Government, while the
same power as well as the power to emit bills of credit was
withdrawn from the States. The States can no longer declare what shall be money, or regulate its value. Whatever power there is over the currency is vested in Congress.
If the power to declare what is money is not in Congress,
it is annihilated. * * * it might be argued with
much force that when it is considered in what brief and
comprehensive terms the Constitution speaks, how
sensible its framers must have been that emergencies
might arise when the precious metals (then more scarce
than now) might prove inadequate to the necessities of
the Government and the demands of the people—when
it is remembered that paper money was almost exclusively in use in the States as the medium of exchange,
and when the great evil sought to be remedied was the
want of uniformity in the current value of money, it
might be argued, we say, that the gift of power to coin
money and regulate the value thereof, was understood as
conveying general power over the currency, the power
which had belonged to the States, and which they surrendered. [Italics supplied.]
In a separate concurring opinion, Mr. Justice
Bradley said (p. 562):
Another ground of the power to issue Treasury notes
or bills is the necessity of providing a proper currency
for the country, and especially of providing for the
failure or disappearance of the ordinary currency in
times of financial pressure and threatened collapse of
commercial credit. Currency is a national necessity.
The operations of the Government, as well as private trans-
MARCH, 1933
FEDERAL RESERVE BULLETIN
actions, are wholly dependent upon it. The State
governments are prohibited from making money or
issuing bills. Uniformity of money was one of the
objects of the Constitution. The coinage of money and
regulation of its value is conferred upon the General
Government exclusively. That Government has also
the power to issue bills. It follows, as a matter of
necessity, as a consequence of these various provisions,
that it is specially the duty of the General Government
to provide a national currency. The States can not do it,
except by the charter of local banks, and that remedy, if
strictly legitimate and constitutional, is inadequate,
fluctuating, uncertain, and insecure, and operates with
all the partiality to local interests, which it was the
very object of the Constitution to avoid. But regarded
as a duty of the General Government, it is strictly in
accordance with the spirit of the Constitution, as well
as in line with the national necessities. [Italics
supplied.]
The tax imposed by the act of July 13, 1866,
accomplished the object of eliminating the
circulating notes of State banks and thus giving
us a national currency of uniform value; but
it has not accomplished the object of eliminating the competition of State banks and thus
creating a unified commercial banking system as
a basis for that currency.
Prior to the Civil War, banks derived most of
their profits from the issuance of circulating
notes and relied to a much lesser extent than
they do now on deposits as a source of earning
power. In fact, the amount of their circulatingnotes frequently exceeded the amount of their
deposits. (Rep. National Monetary Commission, vol. 5, pp. 16, 27.) It was expected, therefore, that the imposition of a prohibitive tax on
their circulating notes would cause all State
banks either to convert into national banks or to
go out of business.
A way was soon found, however, to conduct a
profitable banking business without issuing circulating notes. It was through the development of the use of checks in lieu of currency as a
means of payment. This was convenient to
depositors and profitable to the banks, since the
latter could enjoy the use of the money pending
its withdrawal and even while the checks were
in process of collection; and the practice was
encouraged by national banks as well as State
banks. Moreover, arrangements facilitating
the easy flow of checks throughout the country
made the use of checks so popular that it has
been estimated that, at the present time, more
than 90 per cent of all payments are made by
means of checks.
Checks, therefore, have to a very large extent
taken the place of currency as a medium of payment; and State banks, operating under laws
allowing a greater latitude and requiring less
rigorous supervision and regulation than the
national bank act, have grown in number until,
179
in the peak year of 1921, there were 20,349
State banks (other than mutual savings banks)
compared with 8,154 national banks and, in
1931, there were 13,728 State banks compared
with 6,805 national banks. The reduction in
the number of banks of both classes resulted
principally from failures and consolidations.
(Ann. Rep. Compt. Currency, 1931, p. 3.)
Moreover, with the return of the predominance of State banks, many of the disadvantages of a heterogeneous banking structure
have reappeared in another form; and checks,
which have replaced currency as the principal
medium of payment, frequently prove to be an
ineffective medium. Checks go unpaid because
the banks upon which they were drawn have
failed. Balances against which depositors
expected to draw checks in settlement of their
business transactions are unavailable for that
purpose, because the banks have closed their
doors.
Not only has the effective operation of the
national banking system and the Federal reserve system been seriously impaired by the
"competition in laxity" of bank regulation and
supervision, described in the statements of
Governor Meyer and Mr. Owen D. Young
quoted above, but the proportion of national
banks to the total number of commercial banks
in the country has fallen from 87 per cent in
1868 to 33 per cent in 1931; and only 38 per
cent of all the commercial banks were members
of the Federal reserve system in 1931. A material portion of commercial banking business,
therefore, is conducted outside of the Federal
reserve system and contributes nothing to the
basis for our currency.
The tax on circulating notes having become
ineffective as a result of the use of checks in
lieu of currency, Congress has the right to
bring the act of July 13, 1866, up to date by
making the tax applicable to checks drawn on
State banks.
III. THE POWER TO REGULATE AND PROTECT
INTERSTATE COMMERCE
Either one of the two grounds discussed
above is sufficient to sustain the conclusion
herein reached; but there is still another separate ground upon which the same conclusion
could be sustained independently. The right
to enact legislation to make banks more reliable
instrumentalities of interstate commerce is
included in the power granted to Congress by
section 8 of article 1 of the Constitution, "To
regulate commerce with foreign nations, and
among the several States, and with the Indian
tribes."
180
FEDERAL RESERVE BULLETIN
MARCH, 1933
In a long series of decisions, this clause of the services of a commercial bank for its consumConstitution has been held to give Congress mation.
control over all phases of interstate commerce,
That the power to regulate commerce among
as well as over all other matters so connected the several States includes the power to remove
with interstate commerce as to require Con- obstructions and impediments to such comgressional control over them in order to make merce and to regulate the instrumentalities as
effective the control over such commerce itself. well as the articles of that commerce is too well
The rule of these decisions is that "commerce" settled by numerous decisions of the Supreme
does not include merely the transfer of goods, Court to require argument. No attempt will
but that the proper regulation of commerce be made, therefore, to review the multitude of
must include the regulation of all aspects of decisions of the Supreme Court regarding the
commerce and of all instrumentalities upon extent of this important power. A few leadwhich the carrying on of commerce depends. ing cases will suffice.
Mondou v. New York, New Haven, and HartThe scope of the power of Congress over
ford R. R. Co., 223 U. S. 1, 32 Sup. Ct. 169.interstate commerce was stated concisely by
Since the transportation system of the country the Supreme Court in Mondou v. New York,
is regarded as an essential instrumentality to N. H. & H. R R Co. (1911), 223 U. S. 1,
this end, it has, under the commerce clause, 32 Sup. Ct. 169, wherein the court sustained
been subjected to Congressional regulation on the validity of the Federal employees' liability
a vast scale. Railroad cars not used in inter- act and reaffirmed the power of Congress to
state commerce, but which may be placed in the determine the necessity for/ and to enact,
same train with those that are, must conform uniform national legislation to replace the
to the Federal safety appliance act. Southern variant State legislation governing the same
Railway Co. v. United States, 222 U. S. 20, 32 subject (pp. 173,174):
Sup. Ct. 2. Intrastate freight rates are sub- The clauses in the Constitution (art. I., sec. 8,
jected to Federal regulation when they interfere clauses 3 and 18) which confer upon Congress the power
with interstate rates. Railroad Commission of "to regulate commerce * * * among the several
Wisconsin.v. Chicago, B. & Q. R. R. Co., 257States/' and "to make all laws which shall be necessary
proper" for the purpose, have been considered by
U. S. 563, 42 Sup. Ct. 232. The issuance of and
this court so often and in such varied connections that
fraudulent bills of lading is punishable under a some propositions bearing upon the extent and nature
Federal statute, even when they cover no inter- of this power have come to be so firmly settled as no
state shipment. United States v. Ferger, 250 longer to be open to dispute, among them being these:
The term "commerce" comprehends more than
U. S. 199, 39 Sup. Ct. 445. Stockyards, the1.mere
of goods. It embraces commercial
although engaged in dealing locally in livestock, intercourseexchange
in all its branches, including transportation
are subjected to Federal control, because they of passengers and property by common carriers, whether
are essential cogs in the machinery of interstate carried on by water or by land.
2. The phrase "among the several States" marks the
commerce. Stafford v. Wallace, 258 U. S. 495, distinction,
for the purpose of governmental regulation,
42 Sup. Ct. 397. The same is true of the prin- between commerce
which concerns two or more States
cipal grain markets. Board of Trade of City of and commerce which is confined to a single State and
Chicago v. Olsen, 262 U. S. 1, 43 Sup. Ct. 470. does not affect other States,—the power to regulate the
being conferred upon Congress and the regulaThe decisions contain many other examples of a former
tion of the latter remaining with the States severally.
similar nature.
3. "To regulate/' in the sense intended, is to foster,
Although the courts have held that the pow- protect, control, and restrain, with appropriate regard for
welfare of those who are immediately concerned
ers of Congress under the commerce clause the
the public at large.
extend to a great variety of matters related to and4. ofThis
power over commerce among the States, so concommerce—from the quality of radio broad- ferred upon Congress, is complete in itself, extends incicasting stations to the criminality of traffic dentally to every instrument and agent by which such
is carried on, may be exerted to its utmost
in certain articles—no judicial interpretation commerce
extent over every part of such commerce, and is subject to
nor any extension of the literal terms of that no
limitations save such as are prescribed in the Conclause is necessary to make it include the very stitution. But, of course, it does not extend to any
essentials of commerce, i. e., the acts of trans- matter or thing which does not have a real or substantial relation to some part of such commerce. [Italics
ferring the goods and of transmitting the con- supplied.]
sideration for them. The one is as essential
as the other. A breakdown in the means of
That these considerations apply as much to
payment would be as disastrous as a break- the instruments as to the agents of such comdown in the means of shipment, since virtually merce, is shown by the brilliant passage which
every commercial transaction requires the immediately follows in the opinion (p. 174):
FEDERAL RESERVE BULLETIN
MARCH, 1933
As is well said in the brief prepared by the late Solicitor General: "Interstate commerce—if not always, at
any rate when the commerce is transportation—is an
act. Congress, of course, can do anything which, in
the exercise by itself of a fair discretion, may be deemed
appropriate to save the act of interstate commerce
from prevention or interruption, or to make that act
more secure, more reliable, or more efficient. The act
of interstate commerce is done by the labor of men and
with the help of things; and these men and things are
the agents and instruments of the commerce. If the
agents or instruments are destroyed while they are
doing the act, commerce is stopped; if the agents or
instruments are interrupted, commerce is interrupted;
if the agents or instruments are not of the right kind or
quality, commerce in consequence becomes slow or
costly or unsafe or otherwise inefficient; and if the conditions under which the agents or instruments do the
work of commerce are wrong or disadvantageous, those
bad conditions may and often will prevent or interrupt
the act of commerce or make it less expeditious, less
reliable, less economical, and less secure. Therefore,
Congress may legislate about the agents and instruments of
interstate commerce, and about the conditions under which
those agents and instruments perform the work of interstate commerce, whenever such legislation bears, or, in the
exercise of a fair legislative discretion, can be deemed to
bear, upon the reliability or promptness or economy or
security or utility of the interstate commerce act.}}
[Italics supplied.]
If banks are destroyed, commerce is stopped;
if banks are suspended, commerce is interrupted; if banks are not of the right kind or
quality, " commerce in consequence becomes
slow or costly or unsafe or otherwise inefficient"; and if the laws, regulations, and supervision under which banks perform their
functions are wrong or inadequate, " these bad
conditions may and often will prevent or
interrupt the act of commerce or make it less
expeditious, less reliable, less economical, and
less secure." Therefore, it would seem that
Congress may legislate about banks as agents
and instruments of interstate commerce and
may prescribe the conditions under which banks
perform the work of finally consummating
transactions in interstate commerce, " whenever
such legislation bears, or, in the exercise of a
fair legislative discretion, can be deemed to
bear, upon the reliability or promptness or
economy or security or utility" of the act of
interstate commerce.
The fundamental incentive for interstate
commerce is profit; and no transaction in interstate commerce is finally consummated until
payment has been received for the goods which
have been sold and shipped. In many instances, the very act of shipping goods in
interstate commerce is inseparably connected
with the forwarding, through a series of banks,
of bills of lading attached to bills of exchange
which must be paid or accepted before the goods
are released. The ultimate payment which
161485—33
6
181
constitutes the object and the final act of
nearly every transaction in interstate commerce
is made by means of a check drawn upon a bank
in one State in favor of a payee in another
State; and such checks are forwarded for collection through a series of banks scattered over
at least two, and frequently more, different
States. Banks, therefore, are essential instrumentalities of interstate commerce.
Nearly every bank failure delays or prevents
the final consummation of numerous transactions in interstate commerce by preventing or
delaying the payment of the checks given in
settlement therefor; and Congress clearly would
be justified in finding that a heterogeneous
banking system in which there have been more
than 10,000 suspensions involving deposits
amounting to nearly $5,000,000,000 since 1920,
is a burden upon and an obstruction to interstate commerce.
Since " Congress * * * can do anything which, in the exercise by itself of a fair
discretion, may be deemed appropriate to save
the act of interstate commerce from prevention
or interruption, or to make the act more secure,
more reliable, or more efficient," it would seem
clear that Congress can create a unified banking
system in order to remove such an obstruction
and burden to interstate commerce.
In Houston, etc. R. Co. v. United States
(1914), 234 U. S. 342, 34 Sup. Ct. 833, wherein
the Supreme Court sustained the validity of an
act of Congress regulating purely intrastate
freight rates when such rates were found by the
Interstate Commerce Commission to interfere
with interstate rates, the court said (p. 836):
It is unnecessary to repeat what has frequently been
said by this court with respect to the complete and
paramount character of the power confided to Congress
to regulate commerce among the several States. It is
of the essence of this power that, where it exists, it dominates. Interstate trade was not left to be destroyed or
impeded by the rivalries of local government. The pur-
pose was to make impossible the recurrence of the evils
which had overwhelmed the Confederation, and to provide the necessary basis of national unity by insuring
"uniformity of regulation against conflicting and discriminating state legislation." By virtue of the compre-
hensive terms of the grant, the authority of Congress is at all
times adequate to meet the varying exigencies that arise,
and to protect the national interest by securing the freedom
of interstate commercial intercourse from local control.
[Italics supplied.]
It has been recognized that one of the principal reasons for subjecting interstate commerce
and matters related to it to national rather than
local regulation is the fact that interstate commerce "is of national importance, and admits and
requires uniformity of regulation." Walton v.
Missouri (1876), 91 U. S. 275.
182
FEDERAL RESERVE BULLETIN
MARCH, 1933
In Stafford v. Wallace (1922), 258 U. S. 495,
In Mondou v. New York, N. H. & H. R. Co.,
42 Sup. Ct. 397, the court considered the
supra, the court said, (p. 175):
We are not unmindful that that end was being validity of an act of Congress which, among
measurably attained through the remedial legislation other things, provided for Federal supervision
of the several states, but that legislation has been far from and control of stockyards. The court found
uniform^ and it undoubtedly rested with Congress to that, although many of their transactions are
determine whether a national law, operating uniformly
in all the Statesy upon all carriers by railroad engaged in purely local, the business of the packers and of
interstate commerce, would better subserve the needs of the stockyards is an integral and essential part
that commerce. [Italics supplied.]
of the interstate commerce in livestock and
Obviously the same principle applies to meat, and accordingly held the statute to be a
banks or a banking system which Congress has valid exercise of the power conferred on
created. See Easton v. Iowa, supra, wherein Congress by the commerce clause.
In rendering the opinion of the court, Mr.
the court said that the national bank legislation
"has in view the erection of a system extending Chief Justice Taft said (pp. 517, 521):
throughout the country, and independent so jar
* * * The only question here is whether the
as powers conferred are concerned, of State business done in the stockyards, between the receipt
the livestock in the yards and the shipment of them
legislation which, if permitted to be applicable of
is a part of interstate commerce, or is so
might impose limitations and restrictions as therefrom,
associated with it as to bring it within the power of
various and as numerous as the States."
national regulation. A similar question has been
It is not only within the power of Congress, before this court and had great consideration in
v. United States, 196 U. S. 375, 25 Sup. Ct. 276,
therefore, to create a unified banking system Swift
49 L. Ed. 518. The judgment in that case gives a
in order to remove existing impediments and clear and comprehensive exposition, which leaves to
obstructions to interstate commerce resulting us in this case little but the obvious application of the
from the existence of 48 different State banking principles there declared.
*
*
*
*
systems, but it is also right, meet, and proper
* * * Whatever amounts to more or less constant
for Congress to do so, since the object is a practice^
threatens to obstruct or unduly to burden the
national one which can be dealt with effectively freedom ofand
interstate commerce is within the regulatory
only by the national legislature.
power of Congress under the commerce clause^ and it is
This conclusion is not based upon the theory primarily for Congress to consider and decide the fact of
meet it. This court will certainly not
that the banking business is itself commerce, the dangeritsand
judgment for that of Congress in such a
but upon the fact that banks are instrumentali- substitute
matter unless the relation of the subject to interstate
ties of interstate commerce and that an un- commerce and its effect upon it are clearly nonexistent.
sound and unsatisfactory banking system is a [Italics supplied.]
burden upon and an impediment to interstate
Two cases dealing with Congressional legiscommerce.
lation regarding grain futures markets have an
If, therefore, Congress decides to solve this important bearing not only upon the right of
problem through the exercise of its powers over Congress to regulate the commercial banking
interstate commerce and as a means to remov- business in order to prevent an obstruction to
ing an obstruction to interstate commerce, it interstate commerce but also upon the proper
need not confine the legislation to transactions method of preparing such legislation.
of an interstate character, but may legislate
In the first of these cases, Hill v. Wallace
for the banking system as a whole; since every (1922), 259 U. S. 44, 42 Sup. Ct. 453, an act of
commercial bank actually functions as an Congress designed to regulate the conduct
instrumentality of interstate commerce and of business of boards of trade through the
every failure of a commercial bank obstructs exercise of the power of taxation was held to
and impedes the consummation of numerous be unconstitutional. In Board of Trade v.
transactions in interstate commerce.
Olsen (1923), 262 U. S. 1, 43 Sup. Ct. 470,
The effective regulation of interstate com- however, the court upheld the validity of a
merce requires the regulation of some matters statute having the same object, on the ground
which in and of themselves are not interstate that it was intended to remove an obstruction
commerce, but which have a direct relation- or interference with interstate commerce in the
ship to such commerce. In other words, if the form of price manipulation and control in these
transaction which is of itself purely intrastate is markets.
a vital part of interstate commerce, the regulaUnlike the statute held unconstitutional in
tion of that transaction may be undertaken by Hill v. Wallace, the statute which was sustained
Congress under the commerce clause.
as constitutional in Board of Trade v. Olsen
MARCH, ]
FEDERAL RESERVE BULLETIN
183
clearly stated its relation to interstate com- presented the question whether sales and purchases of
cattle made in Chicago at the stockyards by commission
merce. It contained a recital and finding of men
and dealers and traders under the rules of the
the facts disclosed in the hearings and commit- stockyards corporation could be brought by Congress
tee reports, to the effect that transactions in under the supervision of the Secretary of Agriculture to
grain involving sales for future delivery as prevent abuses of the commission men and dealers in
charges and other ways, and in their relacommonly conducted on boards of trade are exorbitant
tions with packers prone to monopolize trade and
affected with a national public interest and depress and increase prices thereby. It was held that
that they are susceptible of speculation, manip- this could be done, even though the sales and purchases
ulation and control resulting in fluctuations in by commission men and by dealers were in and of themintrastate commerce, the parties to sales and purprices which constitute an obstruction to and selves
chases and the cattle all being at the time within the city
a burden upon interstate commerce in grain.
of Chicago.
*
*
*
*
*
With certain exceptions, the act forbade
boards of trade to use the mails or interstate
This case was but the necessary consequence of the
telephone, telegraphic, wireless, or other com- conclusions reached in the case of Swift & Co. v. United
196 U. S. 375, 25 Sup. Ct. 276, 49 L. Ed. 518.
munication in offering or accepting sales of States,
That case was a milestone in the interpretation of the
grain for future delivery or to disseminate commerce clause of the Constitution. It recognized
prices or quotations thereof, unless such boards the great changes and development in the business of
of trade are located at terminal markets which this vast country and drew again the dividing line
interstate and intrastate commerce where the
have been designated by the Secretary of between
Constitution intended it to be. It rejused to permit
Agriculture as contract markets, comply with local incidents oj great interstate movement, which taken
certain regulations and restrictions contained alone were intrastate, to characterize the movement as
in the act, and submit to the supervision of the such. The Swift Case merely fitted the commerce
clause to the real and practical essence of modern
Secretary of Agriculture.
business growth. It applies to the case before us just
In rendering the opinion of the court sus- as it did in Stafford v. Wallace.
taining the constitutionality of the act, Mr.
*
*
*
*
*
Chief Justice Taft said (262 U. S. 31-41, 43
In the act we are considering, Congress has expressly
declared that transactions and prices of grain in dealSup. Ct. 475-479):
ing in futures are susceptible to speculation, manipulaAppellants contend that the decision of this court tion, and control which are detrimental to the producer
in Hill v. Wallace, 259 U. S. 44, is conclusive against and consumer and persons handling grain in interstate
the constitutionality of the Grain Futures Act. Indeed commerce and render regulation imperative for the
in their bill they pleaded the judgment in that case as protection of such commerce and the national public
res judicata in this, as to its invalidity. The act whose interest therein.
constitutionality was in question in Hill v. Wallace was It is clear from the citations, in the statement of the
the Future Trading Act (c. 86, 42 Stat. 187). It was case, of evidence before committees of investigation as
an effort by Congress, through taxing at a prohibitive to manipulations of the futures market and their effect,
rate sales of grain for future delivery, to regulate such that we would be unwarranted in rejecting thefindingof
sales on boards of trade by exempting them from the Congress as unreasonable, and that in our inquiry as to
tax if they would comply with the congressional regu- the validity of this legislation we must accept the view that
lations. It was held that sales for future delivery where such manipulation does work to the detriment of prothe parties were present in Chicago, to be settled by ducers, consumers, shippers and legitimate dealers in
offsetting purchases or by delivery, to take place there, interstate commerce in grain and that it is a real abuse.
were not interstate commerce and that Congress could
*
*
*
*
*
not use its taxing power in this indirect way to regulate
q ues tion of price dominates trade
business not within Federal control.
between the States. Sales of an article which affect
*
*
*
*
*
the country-wide price of the article directly affect the
The Grain Futures Act which is now before us differs country-wide commerce in it. By reason and authorfrom the Future Trading Act in having the very features ity, therefore, in determining the validity of this act,
the absence of which we held in the somewhat care- we are prevented from questioning the conclusion of
fully framed language of the foregoing prevented our Congress that manipulation of the market for futures
sustaining the Future Trading Act. As we have seen in on the Chicago Board of Trade may, and from time to
the statement of the case, the act only purports to time does, directly burden and obstruct commerce
regulate interstate commerce and sales of grain for between the States in grain, and that it recurs and is
future delivery on boards of trade because itfindsthat a constantly possible danger. For this reason, Conby manipulation they have become a constantly recurring
gress has the power to provide the appropriate means
burden and obstruction to that commerce. Instead, thereadopted in this act by which this abuse may be restrainfore, of being an authority against the validity of the ed and avoided. [Italics supplied.]
Grain Futures Act, it is an authority in its favor.
*
*
*
*
*
Likewise, if Congress finds that our present
It is impossible to distinguish the case at bar, so far banking system, which has given rise to more
as it concerns the cash grain, the sales to arrive, and than 10,000 bank failures since 1920, which
the grain actually delivered in fulfillment of future necessarily have delayed and obstructed the
contracts, from the current of stock shipments declared
to be interstate commerce in Stafford v. Wallace, 258 consummation of innumerable transactions
U. S. 495, 42 Sup. Ct. 397, 66 L. Ed. 735. That case in interstate commerce, is a burden upon and
184
FEDERAL RESERVE BULLETIN
obstruction to interstate commerce, the Supreme Court would not be warranted in rejecting the finding of Congress as unreasonable or
in concluding that legislation designed to correct
this situation and remove such an obstruction
to interstate commerce is not a proper exercise
of the power to regulate commerce among the
States.
If the purchase and sale of cattle by commission men, dealers and traders at the Chicago
stock yards, and the sale of grain for future
delivery on the Chicago Board of Trade and
the dissemination of prices and quotations
thereof, can be brought by Congress under the
supervision of the Federal Government, on the
ground that abuses in such business constitute
obstructions to interstate commerce, it seems
clear that the transaction of a commercial
banking business, involving the payment of
checks given in settlement of transactions in
interstate commerce and the handling of
innumerable bills of exchange secured by bills
of lading growing out of transactions in interstate commerce, can also be brought under the
supervision of the Federal Government.
Such cases as Hammer v. Dagenhart (1918),
247 U. S. 251, 38 Sup. Ct. 529, and Bailey v.
Drexel Furniture Co. (1922), 259 U. S. 20,
42 Sup. Ct. 449, need not be distinguished in
detail; because they relate to Federal legislation wherein Congress attempted to deal with
purely local questions having no essential
connection with interstate commerce; whereas
commercial banking is a matter of national
rather than local concern and is essentially
connected with, and inextricably related to,
interstate commerce.
Federal legislation to relieve interstate commerce of the impediments and obstructions
resulting from a heterogeneous and inefficient
banking structure would not constitute an
invasion of the rights of the States; because it
would relate to a subject which the fathers of
the Constitution clearly intended to intrust
to the National Government, in order that we
might have a Nation and not a mere confederation of States and in order that the free flow
of commerce between the different parts of the
Nation might not be impeded by State legislation.
The importance of banking as an indispensable aid to commerce has already been recognized by the Supreme Court of the United States
in the case of Noble State Bank v. Haskell
(1911), 219 U. S. 104, 31 Sup. Ct. 186, wherein
the court said, through Mr. Justice Holmes
(p. 188):
M A E C H , 1933
* * * Among matters of that sort probably few
would doubt that both usage and preponderant opinion
give their sanction to enforcing the primary conditions of
successful commerce. One of those conditions at the present time is the possibility of payment by checks drawn
against bank deposits, to such an extent do checks replace
currency in daily business. * * * Even the primary object * * * is not a private benefit,
* * * but it is to make the currency of checks secure
and by the same stroke to make safe the almost compulsory
resort of depositors to banks as the only available means
for keeping money on hand. * * * [Italics supplied.]
It is appropriate and in accordance with the
fundamental principles of our Government for
Congress to undertake the task of making "the
currency of checks secure"; because it is essential to the free and unhampered flow of commerce between the States, the regulation of
which is intrusted to Congress alone by the
Constitution.
If Congress should decide that more effective
regulation and supervision of the commercial
banking business is desirable in order to make
the currency of checks secure, it is peculiarly
fitting and proper that Congress should undertake to provide that remedy; because the problem is not a local one but relates directly to
matters of national concern which are expressly
intrusted to Congress by the Constitution.
In the case of United States v. Ferger (1919),
250 U. S. 199, the Supreme Court of the
United States sustained the constitutionality
of section 41 of the act of August 29, 1916 (39
Stat. 538), which provides for the punishment
of any person who forges or counterfeits a bill
of lading, even though that section applies to
cases where no shipment from one State to
another is made or intended. The court held
that, in order to protect and sustain interstate
commerce, Congress may prohibit and punish
the forgery and utterance of bills of lading for
fictitious shipments in interstate commerce.
In delivering the opinion of the court, Mr.
Chief Justice White said (250 U. S. 203-205):
* * * Thus both in the pleadings and in the contention as summarized by the court below it is insisted
that, as there was and could be no commerce in a fraudulent and fictitious bill of lading, therefore the power
of Congress to regulate commerce could not embrace
such pretended bill. But this mistakenly assumes that
the power of Congress is to be necessarily tested by the
intrinsic existence of commerce in the particular subject
dealt with, instead of by the relation of that subject to
commerce and its effect upon it. We say mistakenly
assumes, because we think it clear that if the proposition were sustained it would destroy the power of Congress to regulate, as obviously that power, if it is to
exist, must include the authority to deal with obstructions
to interstate commerce (In re Debs, 158 U. S. 564) and
with a host of other acts which, because of their relation to
and influence upon interstate commerce, come within the
MAECH, 1933
FEDERAL RESERVE BULLETIN
185
Supreme Court recognized that it afforded a
good illustration of the application of the
principle to the subject dealt with in the Ferger
Case. Conversely, it would seem that the court
would not hesitate to apply the principle underlying
its decision in the Ferger Case to the
Art. I, sec. 8, clause 18. A case dealing with a somewhat different exercise of power, hut affording a good illus- subject of banking.
If bills of lading are instrumentalities of intration of the application of the principle to the subject in
hand, is First National Bank v. Union Trust Co., 244 terstate commerce, so are checks and the banks
U. S. 416.
upon which they are drawn, and if Congress has
*
*
*
*
*
the right to prohibit and to punish the fraudu* * * That, as instrumentalities of interstate lent making of spurious bills of lading in order
commerce, bills of lading are the efficient means of credit
resorted to for the purpose of securing and fructifying the to protect and sustain the vast volume of interflow of a vast volume of interstate commerce upon which state commerce operating and moving in relithe commercial intercourse of the country, both domestic ance upon genuine bills, then Congress must
and foreign, largely depends, is a matter of common have the right to enact legislation to safeguard
knowledge as to the course of business of which we may
take judicial notice. Indeed, that such bills of lading the use of checks in order to protect and susand the faith and credit given to their genuineness and tain the vast volume of interstate commerce
the value they represent are the producing and sus- which is consummated by payments made by
taining causes of the enormous number of transactions
in domestic and foreign exchange, is also so certain and means of checks. Since the safe use of checks
depends primarily upon the solvency of the
well known that we may notice it without proof.
With this situation in mind the question therefore is, banks upon which they are drawn, Congress
Was the court below right in holding that Congress had must have the right to enact legislation to prono power to prohibit and punish the fraudulent making mote the safer and more effective operation of
of spurious interstate bills of lading as a means of protecting and sustaining the vast volume of interstate commercial banks.
Nor is Congress prevented from exercising
commerce operating and moving in reliance upon
genuine bills? To state the question is to manifest the this power by the fact that part of the business
error which the court committed. * * * It pro- of commercial banks is purely local in characceeds further, as we have already shown, upon the
erroneous theory that the credit and confidence which ter; but the power to regulate interstate comsustains interstate commerce would not be impaired or merce "must include the authority to deal with
weakened by the unrestrained right to fabricate and circulate obstructions to interstate commerce * * *
spurious btUs of lading apparently concerning such and with a host of other acts which, because of
commerce. Nor is the situation helped by saying that
as the manufacture and use of the spurious interstate their relation to and influence upon interstate
commerce bills of lading were local, therefore the power commerce, come within the power of Congress
to deal with them was exclusively local, since the prop- to regulate, although they are not interstate
osition disregards the fact that the spurious bills were commerce in and of themselves."
in the form of interstate commerce bills which in and of
If Congress in its wisdom should find that
themselves involved the potentiality of fraud as far
reaching and all embracing as the flow of the channels our heterogeneous banking structure, which
of interstate commerce in which it was contemplated has given rise to more than 10,000 bank failthe fraudulent bills would circulate. As the power to
regulate the instrumentality was coextensive with inter- ures in the last 12 years, constitutes a burden
state commerce, so it must be, if the authority to regulateupon or an obstruction to interstate commerce,
is not to be denied, that the right to exert such au- therefore, there can be no doubt that Congress
thority for the purpose of guarding against the injury has the constitutional power to correct the situwhich would result from the making and use of spurious
imitations of the instrumentality must be equally ation by bringing all commercial banking business into a single system subject to effective
extensive. [Italics supplied.]
regulation and supervision by the Federal GovThe reference to the court's decision in the ernment, to the end that the currency of checks
case of First National Bank v. Union Trust Co., upon which practically every transaction in inwhich appeals at the end of the first paragraph terstate commerce depends for its consummaquoted from the opinion in the Ferger Case, is tion may be made more secure.
significant; because that is the case discussed
IV. METHODS WHICH COULD BE ADOPTED
elsewhere in this opinion, wherein the Supreme
Court upheld the right of Congress to grant • Having the power to enact such legislation,
trust powers to national banks in order to enable Congress could exercise the power in any manthem to compete with State banks and trust ner which it deems appropriate and adequate
companies. While that case dealt with a for this purpose. It is not necessary that the
somewhat different exercise of power, the legislation assume the form of a revenue act
power of Congress to regulate, although they are not interstate commerce in and of themselves. It would be super-
fluous to refer to the authorities which from the foundation of the Government have measured the exertion by
Congress of its power to regulate commerce by the principle just stated, since the doctrine is elementary and
is but an expression of the text of the Constitution.
186
FEDERAL RESERVE BULLETIN
or an act to regulate interstate commerce,
though either of these means would be appropriate. In the light of the decisions of the
Supreme Court of the United States in Stafford
v. Wallace, and Board of Trade of Chicago v.
Olsen, however, it would be desirable for such
legislation to contain findings of fact and a recital of the national objects to be attained, as
did the grain futures act.
Among the constitutional means which Congress could adopt in order to accomplish these
objects or to aid in their accomplishment are
the following:
(1) It could forbid the receipt of deposits
subject to withdrawal by check by any individual, partnership, or corporation other than
a bank organized under the laws of the United
States and provide suitable penalties for violations of this prohibition.
(2) It could impose a prohibitive tax on all
checks and similar documents drawn on, or
payable at, banks not organized under the laws
of the United States.
(3) It could forbid any officer of the United
States or any Federal reserve bank, national
bank, Federal land bank, joint stock land bank,
Federal intermediate credit bank, or Federal
home loan bank to receive in payment, on deposit, for the purposes of exchange or collection,
or for any other purpose, any check drawn
upon any bank not organized under the laws
of the United States.
(4) It could forbid any bank organized under
the laws of the United States to make loans or
extend credit to, or deposit any of its funds in,
or permit the use of any of its facilities by, any
commercial bank not organized under such laws.
(5) It could forbid the deposit of public funds
of the United States in any bank not organized
under the laws of the United States.
(6) It could exempt all national banks from
taxation, State or Federal, except taxes on real
estate.
In order to be completely effective, the legislation could combine several of the measures
suggested above. Thus, a comprehensive bill on
this subject might include the following:
(1) A finding of facts by the Congress (on the
basis of evidence already obtained pursuant to
Senate Resolution No. 71 and other evidence
which may be produced) to the effect that, in
order (a) to provide for the safe and more effective operation of the national banking system and the Federal reserve system, (6) to
preserve for the people the full benefits of the
currency provided for by the Congress, and (c)
MARCH, 1933
to relieve interstate commerce of the burdens
and obstructions resulting from the existing
situation, it is necessary to restrict the business
of receiving deposits subject to withdrawal by
check to national banks and thereby to subject
all commercial banking business to national
regulation and supervision;
(2) A prohibition against the receipt of deposits subject to withdrawal by check except
by banks organized under the laws of the
United States;
(3) A prohibition against any officer of the
United States or any bank organized under the
laws of the United States receiving in payment, on deposit, for exchange or collection, or
for any other purpose, any check drawn upon
any bank not organized under such laws;
(4) A prohibition against any bank organized
under the laws of the United States making
loans or extending credit to, depositing any of
its funds in, or permitting the use of any of its
facilities by, any commercial banking institution not organized under such laws;
(5) A provision imposing a prohibitive tax on
all checks or substitutes therefor drawn upon or
payable at any bank not organized under the
laws of the United States; and
(6) A provision prescribing suitable penalties
for violations of the above provisions.
If such legislation is enacted, its effective
date necessarily would have to be postponed for
a sufficient length of time to avoid too sudden
and revolutionary a change in our existing
financial structure and to allow time for existing
State banks to adjust themselves to the situation, by converting into national banks or
discontinuing the transaction of commercial
banking business.
The time intervening between the enactment of such legislation and the date when it
becomes effective could be devoted to the preparation and enactment of additional legislation
for the purpose of providing further for the
more effective operation, regulation, and supervision of the national banking system and the
Federal reserve system, by repealing undesirable
amendments to the national bank act and
Federal reserve act which grew out of the
competition in laxity, equipping the supervisory
authorities with adequate powers to enable them
to peform their functions more effectively, and
adopting such other measures as might be
deemed appropriate.
Respectfully,
WALTER WYATT,
General Counsel.
WASHINGTON,
D. C , December 5, 1932.
MARCH, 1933
FEDERAL RESERVE BULLETIN
187
Joint Resolution authorizing Comptroller of the Cur- as trustee or other fiduciary; (2) that the mortrency to exercise additional powers.
gages or other securities which are owned by
the participating estates are held in the trust
department
and are properly earmarked so as
[S. J. Res. 256]
to show that they are held for a particular group
JOINT RESOLUTION
of participating estates; (3) that the records
Authorizing the Comptroller of the Currency to exercise with respect to of the trust department show at all times the
national banking associations powers which State officials, may have
with respect to State banks, savings banks, and/or trust companies securities held for a particular group of parunder State laws.
ticipating estates and the proportionate shares
Resolved by the Senate and House of Representatives of the group owned by each estate; (4) that, in
of the United States of America in Congress assembled, the case of a payment on the principal of any
That, with the approval of the Secretary of the Treas- one of the mortgages or securities so held by
ury, the Comptroller of the Currency shall have and
may exercise to such extent as he deems advisable with a fund of this kind, the amount of the payment
respect to any national banking association any powers will ordinarily be retained in the fund as a part
which the State officials having supervision of State thereof for reinvestment as soon as practicable;
banks, savings banks and/or trust companies in the (5) that any such investment of trust funds
State in which such national banking associations are
located may have with respect to such State institu- must be authorized or permitted in accordance
tions under State laws now in force or hereafter with Section IX of the Federal Reserve Board's
enacted: Provided, That nothing herein shall be con- Regulation F, and must comply in all respects
strued to permit the establishment of branches of either with the provisions of the Federal reserve act,
national or State member banks or allow consolidation
of either national or State member banks not allowed the State laws, the board's regulations and the
by existing laws.
provisions of the will, trust agreement, court
Expenses incurred by the Comptroller of the Cur- order, or other instrument governing the powers
rency in the exercise of such powers may be assessed and duties of the trustee or other fiduciary;
by him against the banks concerned and, when so
[PUBLIC RESOLUTION—No. 58—72D CONGBESS]
assessed, shall be paid by such banks.
Nothing herein shall be construed to impair any
power otherwise possessed by the Comptroller of the
Currency, the Secretary of the Treasury or the Federal
Reserve Board.
The powers herein conferred shall terminate six
months from its approval by the President; but the
President of the United States may extend its force by
proclamation for an additional six months.
Approved, February 25, 1933.
Collective investments of trust funds by national banks.
There are summarized below two rulings
made by the Federal Reserve Board regarding
the collective investment of trust funds by
national banks exercising trust powers.
Under the provisions of Section VII of the
Federal Reserve Board's Regulation F, relating
to the exercise of trust powers by national
banks, the securities and investments held in
each trust are required to be kept separate and
distinct one from another; but the board has
ruled that an exception may be made to this
requirement where the cash balances to the credit
of trust estates are too small to be invested sep-
arately to advantage. The board's ruling in this
connection is to the effect that such small
amounts may be invested together in United
States bonds, first mortgage real estate loans,
or other proper securities and participation
certificates may be issued by the trust department to the various participating estates; Provided , (1) That the bank owns no participation in
the securities and has no interest in them except
and (6) that this method of handling trust funds
is permissible only in those cases in which the
cash balances to the credit of certain trust estates
are too small to be invested separately to advantage.
In another ruling the board considered a proposal by a national bank to deliver to its trust
department all real-estate bonds and mortgages
then owned or thereafter acquired by it, to be
held in a revolving pool in trust for the commercial department of the bank and for the various
trusts administered in the trust department of
the same bank. Trust funds were to be invested in participations in the revolving pool
and participation certificates were to be issued
to the various trusts for the amounts of their
respective investments. The proportionate share
of the entire pool over and above the amounts
allotted to the various trusts was to be owned by the
bank in its own right. The participating trusts
were not to own or receive the income from any
particular bonds and mortgages, but each trust
was to own merely a participation in the pool and
was to receive an income on the amount of such
participation equal to the average income
realized on all bonds or mortgages in the pool.
Any losses incurred in the revolving pool were
to be borne by all the participants in proportion
to their respective participations at the time the
amount of such losses was definitely ascertained. After careful consideration, the Federal
Reserve Board ruled that it was unlawful and
improper for a national bank to handle trust
funds in this manner; because: (1) It would
188
FEDEKAL KESERVE BULLETIN
violate the provisions of section ll(k) of the
Federal reserve act which requires national
banks to " segregate all the assets held in any
fiduciary capacity from the general assets of
the bank"; (2) it would violate Section VII of
the Board's Regulation F which requires that,
" Securities and investments held in each trust
shall be kept separate and distinct from the
securities owned by the bank and separate and
distinct one from another"; (3) it would violate
the general rule of equity jurisprudence that a
trustee must not mingle funds of various trusts
with each other or with his own funds but must
keep the funds of each trust separate and distinct from his own and from those of any other
trust; (4) it would violate the general rule of
equity jurisprudence that, in administering a
trust and investing trust funds, a trustee shall
not deal with himself, buy from or sell to
himself, have any pecuniary interest in any
transaction which he handles on behalf of a
cestui que trust, or otherwise acquire any
selfish interest which might interfere with the
faithful discharge of his duty as a fiduciary;
and (5) such a method of investing trust funds
is subject to important practical objections and
might lead to abuses resulting in substantial
losses to the trust estates. The fact that corporate fiduciaries in at least one State are permitted by State law to invest trust funds collectively in real-estate mortgage pools in this
manner was brought to the board's attention
when it was considering this question; but the
board held that this did not authorize national
banks to engage in such practices. The ruling
just described, however, was not intended to
supersede the earlier ruling wherein an exception to the general rule was made solely
to cover the case of balances too small to be
invested separately to advantage.
Warehouse receipts securing bankers' acceptances.
The Federal Reserve Board has had occasion
to consider the question whether receipts proposed to be issued by a warehouse company
under a certain field-warehousing arrangement
would comply with the requirements of the
Federal reserve act and the board's regulations
with reference
to warehouse receipts securing
bankers7 acceptances drawn to finance the
storage of readily marketable staples.
The following are the principal facts upon
which the board's consideration and conclusion
with respect to this question were based: It
was proposed that premises, which were
situated in several different localities, should
MARCH, 1933
be leased to the warehouse company for the
purpose of warehousing certain products owned
by the lessor. It was understood that the
warehoused products would be properly segregated from other goods on the premises in
separate buildings or in portions of buildings
partitioned off for that purpose and locked
with the warehouse company's own locks and
that conspicuous signs giving notice that the
products thus segregated were in the custody
of the warehouseman would be placed both
inside and outside the premises. In the operation of these warehouses, however, the company was not to detail men already in its
employ to take charge of the leased premises,
but for this purpose was to transfer to its
pay roll employees of the lessor, paying them
the same salary that they were receiving from
the lessor at the time of the transfer. It was
expected that these employees would be
reemployed by the lessor at the close of the
storage season or when the products had been
removed from storage; but the warehouse
company was to have the right to terminate
their services at any time. These local custodians were to be the only representatives of the
company at the warehouses; but periodical
audits were to be made by auditors sent from
the district office of the company, which was
located at a considerable distance from the
proposed warehouses. The premises were to
be leased at a nominal rental only and the
lessor, in addition to paying a monthly storage
fee, was to reimburse the warehouse company
for all expenses, including the compensation
of the custodians, the salaries and expenses of
auditors, and the costs of the bonds which were
to be required of the custodians. A local
custodian was not to be permitted to issue
warehouse receipts or to authorize releases, but
these functions were to be performed at the
district office of the warehouse company upon
the basis of statements signed by the custodian and a representative of the lessor.
In order for a bankers' acceptance drawn to
finance the domestic storage of readily marketable staples to be eligible for rediscount by
Federal reserve banks: (1) Section 13 of the
Federal reserve act requires that it be " secured
at the time of acceptance by a warehouse receipt
or other such document conveying or securing
title covering readily marketable staples"; and
(2) Section XI of the board's regulation A requires that it be " secured at the time of acceptance by a warehouse, terminal, or other similar
receipt, conveying security title to such staples,
issued by a party independent of the customer."
MARCH, 1933
The requirement of the law that such warehouse receipts must convey or secure title to
readily marketable staples obviously contemplates that the accepting bank shall have a lien
on such staples which is valid and enforceable
against general creditors of the person for whose
benefit such acceptance credit is granted.
Among the requirements generally recognized
as essential to the creation of a valid lien
through the pledge of warehouse receipts are
that the warehouseman must take and maintain actual physical possession of the goods and
that his possession must be exclusive and unequivocal. Under the arrangement above described, however, the actual possession of the
goods would be maintained by persons closely
identified with the owner of the goods and
naturally subject to his influence. Such a
custodian, who might be regarded by the owner
and his creditors as the employee of the owner
rather than of the warehouseman, probably
would find it difficult to deny access to the
premises to his former employer and the person
to whom he looks for future employment. In
the circumstances, it is open to serious question
whether the pledge of receipts issued under the
arrangement described would fulfill the requirements for the creation of a valid lien.
The requirement of the board's regulations
that warehouse receipts securing bankers' acceptances be issued by a party independent of the
customer contemplates that the actual custody
of the goods shall be maintained by an independent and disinterested party, so that the bank
holding the warehouse receipt may be able to
identify and obtain possession of the goods and
thus enforce its lien without any difficulty. A
lien on personal property is, of course, of no
practical value unless such property can be
found and identified when it becomes necessary
to enforce the lien; and, if custody of the goods
is not maintained by a disinterested party,
there is danger that the goods may be improperly released or disposed of. In the case under
consideration, whatever may be the theoretical
requirements as to the control and custody of
the goods by the warehouseman, it is obvious
that in fact the warehouseman would not be
independent of the owner; because the warehouse company would have to rely upon its
Local custodians and they would not be independent of the owner.
After carefully considering this question and
studying all information received on the subject, the Federal Reserve Board expressed the
opinion that bankers' acceptances issued against
receipts, such as those proposed to be issued
189
FEDEKAL RESERVE BULLETIN
under the circumstances above described, are
not eligible for rediscount at Federal reserve
banks; because it is doutbful whether such
receipts comply with the requirement of section
13 of the Federal reserve act that warehouse
receipts securing bankers' acceptances drawn to
finance the storage of readily marketable staples
must convey or secure title to such staples, and
because such receipts do not, in the board's
judgment, comply with the requirement of
Section XI of the board's Regulation A that
warehouse receipts securing such bankers'
acceptances must be "issued by a party independent of the customer."
In giving expression to this opinion, the
Federal Reserve Board did not undertake to
pass upon the merits of field warehousing in
general, either as conducted by the warehouse
company in question or as conducted by any
other company; and the board's opinion relates
solely to warehouse receipts such as those proposed to be issued under the facts of the arrangement as above described.
REGULATIONS OF THE SECRETARY OF AGRICULTURE FOR FIELD WAREHOUSEMEN
There is published below a copy of the regulations prescribed by the Secretary of Agriculture under date of July 30, 1932, for field
warehousemen, supplementary to the commodity regulations under the United States
warehouse act, with a foreword by the chief of
the Bureau of Agricultural Economics.
REGULATIONS OF THE SECRETARY OF AGRICULTURE FOR FIELD WAREHOUSEMEN, SUPPLEMENTARY TO THE COMMODITY REGULATIONS,
UNDER THE UNITED STATES WAREHOUSE ACT
OF AUGUST 11, 1916, AS AMENDED
FOREWORD
In the marketing and financing of our agricultural
products warehousing plays an important part. In
connection with some products "field warehousing,"
as distinguished from warehousing as practiced in concentration centers is being employed more and more.
"Field warehousing" carries warehouse service to
the patron of the warehouseman and thus avoids the
necessity of the patron moving his products to a concentration warehouse located at some distance from the
depositor who already has a building suitable for warehousing. The depositor usually finds it more convenient and less expensive to store his products in his own
building. Overhead expense usually is less. He can
avoid a multiplicity of handling and rehandling
charges. Sometimes back hauls may be avoided.
Duplication in inspection and grading may be eliminated. But the primary purpose of field warehousing
is to obtain warehouse receipts which may be used as
collateral to loans.
190
FEDERAL RESERVE BULLETIN
In the administration of the United States warehouse
act the Bureau of Agricultural Economics has frequently received applications for licenses from so-called
field warehousemen. The impression seems to exist
in some quarters that the bureau is opposed to "field
warehousing." This is not so. In the past six years
a number of licenses have been issued to field warehousemen. The bureau has repeatedly stated that
under certain conditions "field warehousing" could
render a valuable economic service. But it has also
consistently pointed out that unless the warehousing
arrangement rests on a correct basis it must fail in
accomplishing its primary purpose of converting
eligible agricultural products into sound collateral.
A convenient and generally recognized method of
converting commodities into such collateral is by storing them with public warehousemen. The warehouseman issues to the depositor his warehouse receipt.
The receipt is offered to the banker as collateral. But
a receipt is good collateral only in proportion as there
is responsibility back of it, as it conveys information as
to the value of the product it represents, and as a real
disinterested custody of the product exists. Regardless of its terms, to constitute the best collateral a
warehouse receipt must have back of it a disinterested
custody of the product.
The regulations of the Federal Reserve Board
provide that warehouse receipts covering readily
marketable staples and given as security to bankers'
acceptances must be issued by a party independent of
the customer.
To introduce the disinterested feature in field warehousing the borrower's building is leased to another
party as warehouseman. The value of such warehouse
receipts depends upon how independent the warehouseman may be of the depositor. Receipts which
on their face convey an apparent disinterested relationship between the depositor and the warehouseman may
not actually represent disinterested custodianship of
the product.
To lease a building from a depositor and then to
permit the depositor free access to the building in the
absence of the warehouseman, or to transfer employees
of the depositor to the pay roll of the warehouseman,
can hardly create such a degree of disinterested custody
of the product as to commend itself to sound banking.
Any number of circumstances and conditions may defeat real disinterested custodianship of the commodity
which after all constitutes the real collateral.
With a view to pointing out features peculiar to field
warehousing, the observance of which this bureau considers essential to creating sound warehouse receipts,
the attached regulations have been promulgated by the
Secretary of Agriculture to supplement all commodity
regulations now in effect under authority of the United
States warehouse act.
We also desire to emphasize that this bureau has
always made a clear distinction between field warehousing and subsidiary warehousing. It is possible to
create disinterested custodianship in field warehousing
but we have not been able to develop such custodianship
in connection with subsidiary warehousing. For this
reason the bureau has insisted that where subsidiary
warehousing exists the warehouse receipts must show
such relationship.
The attached regulations should be helpful to those
engaged or about to engage in field warehousing, to
patrons of field warehouses, and to bankers who are
approached for loans on the basis of field warehouse
receipts.
MARCH, 1933
DEPARTMENT OF AGRICULTURE,
Washington, D. C.
By virtue of the authority vested in the Secretary of
Agriculture by the United States warehouse act, approved August 11, 1916 (39 U. S. Stat. L., p. 486), as
amended, I, R. W. Dunlap, Acting Secretary of Agriculture, do make, prescribe, publish and give public
notice of the following rules and regulations to be
known as the regulations supplementary to the commodity regulations under the United States warehouse
act for field warehousemen, and to be in force and
effect until amended or superseded by rules and regulations which may hereafter be made by the Secretary
of Agriculture under said act.
In testimony whereof I have hereunto set my hand
and caused the official seal of the Department of
Agriculture to be affixed, in the city of Washington,
this 30th day of July, 1932.
[SEAL.]
R. W. DUNLAP,
Acting Secretary.
1. Definitions.—For the purposes of these
regulations, unless the context otherwise require, the
following terms shall be construed, respectively, to
mean:
Paragraph 1. Commodity regulations.—Rules and regulations made under the act by the Secretary for warehousemen storing certain designated agricultural
products.
Par. 2. Field warehouse.—A warehouse that is operated or is to be operated for the purpose of issuing
warehouse receipts representing a disinterested custodianship of the products stored therein and which
is leased from any person having a financial interest in
the products.
Par. 8. Field warehouseman.—Unless otherwise clearly indicated by the context, any person lawfully engaged in the business of operating a field warehouse as
defined in paragraph 2.
Par. 4. Custodian.—A person appointed or designated by a field warehouseman to supervise or manage
a field warehouse licensed under the act.
Par. 5. Assistant custodian.—A person appointed or
designated by a warehouseman to assist the custodian
of afieldwarehouse in the supervision and management
thereof.
SEC. 2. Nothing in these field warehouse regulations
shall be construed to conflict with, or to authorize any
conflict with, or in any way impair or limit, the effect
or operation of the commodity regulations issued by
the Secretary for warehousemen storing any specified
product or products, but these regulations shall be
considered as supplemental to all such commodity
regulations and to be effective as to all field warehouses
and field warehousemen operating under the act.
SEC. 3. Applications for licenses to operate field
warehouses shall be made in accordance with the
commodity regulations for warehousemen storing the
particular agricultural product or products stored or
to be stored in the field warehouse.
SEC. 4. Compliance with all the preliminary requirements of the commodity regulations applicable to the
agricultural product or products in question, as well
as these regulations, shall be prerequisite to issuing a
license to operate a field warehouse.
SEC. 5. There shall be no close relationship, either
by blood or marriage, between the field warehouseman
or his custodians and any depositor or the lessor of the
field warehouse.
SEC. 6. Paragraph 1. No employee, either full or
part-time, of any depositor, nor any person who is a
NILS A. OLSEN,
Chief, Bureau of Agricultural Economics. close blood or other relative of any person occupying a
SECTION
MARCH, 1933
FEDERAL RESERVE BULLETIN
supervisory or directing position in the business or
organization of any depositor, or closely interested
with any depositor in any business, shall be appointed
as a custodian or an assistant custodian by a licensed
field warehouseman; nor shall any person be appointed
as a custodian or an assistant custodian if he has
resigned from the employ of any depositor for the
purpose of accepting employment from the warehouseman at the warehouse.
Par. 2. The compensation, or any part thereof, of
any custodian, assistant custodians, or any other
employee of the warehouseman, if any there be, must
be paid by the warehouseman and not by any depositor. The custodian or assistant custodians need not
be full-time employees of the warehouseman, but shall
not be, under any conditions, part or full-time employees of any depositor of products in the warehouse.
Par. 3. Each person designated by a licensed field
warehouseman as a custodian or an assistant custodian
shall file with the bureau a statement, on a form provided by the bureau for the purpose, setting forth his
qualifications and experience in warehouse work, the
occupation or business he has been engaged in during
the five years next preceding the date of the statement,
the names of his employers, if any, during such 5-year
period, the names of at least five persons who can
vouch for his character and qualifications for the
position, and such other information as the Secretary,
or his designated representative, may require.
Par. 4* No custodian shall accept instructions from
anyone other than the warehouseman.
Par. 5. No custodian or assistant custodian shall
enter upon his duties as such at a licensed field warehouse until he has been notified in writing by the
bureau that his appointment has been approved.
SEC. 7. The warehouse space licensed or to be
licensed shall be substantially separated from other
space and shall be kept securely locked or sealed in
accordance with section 15 of these regulations. All
keys to locks shall be kept in the possession of the
warehouseman or his authorized agent at all times.
In case there is any doubt whether all keys to the
warehouse are in possession of the warehouseman or
his agents the warehouseman shall provide new locks
and keys for the warehouse.
SEC. 8. It shall be the duty of a licensed field warehouseman to keep the licensed field warehouse securely
locked at all times except when the warehouseman,
the custodian, or an assistant custodian is present,
and no person other than the warehouseman, the
custodian, or an assistant custodian shall have access
to the licensed warehouse or the products stored therein
except in the presence of and with the consent of such
warehouseman, custodian, or assistant custodian: Provided, That if any night watchman in the employ
of the owner of the building is required to enter the
licensed warehouse under an insurance requirement and
his only duties at the warehouse building are those of
a night watchman he may be given a key to the warehouse for that purpose, if the approval of the bureau is
first secured and the watchman's service is fully provided for in the field warehouse lease agreement: Provided further, That the provisions of this section shall
not apply in the case of warehouses where the bin
system is in effect as outlined in section 15 of these
regulations. The warehouseman shall at all times
exercise absolute and complete control and dominion
over the licensed warehouse and the products stored
therein to the complete exclusion of all parties except
as provided herein.
191
SEC. 9. No misleading name or designation shall be
applied to any field warehouse licensed under the act,
but in every case the name shall indicate that the warehouse is being operated as a public warehouse by the
warehouseman as lessee.
SEC. 10. Paragraph 1. Before a license to conduct a
field warehouse is granted under the act, the warehouseman shall file with the bureau, in accordance
with the requirements of the commodity regulations, a
copy of his rules and a schedule of charges; and, in
addition, he shall file copies of all contracts and agreements entered into by and between him and any
depositor or the lessor of the field warehouse which in
any way relate to the establishment, operation, management, or payment of expenses connected with the operation of the warehouse. If there are any agreements
or understandings between the lessor of the warehouse
and the lessee with respect to any of the aforementioned
that have not been reduced to writing, the warehouseman shall file with the bureau a written statement
setting forth the substance of such verbal agreements
and understandings.
Par. 2. All warehouses licensed under the act must
be operated as public warehouses, and no rules or
schedules of charges filed by any warehouseman applying for a license under the act shall be approved by the
Secretary, or his designated representative, if it is
not clear that the requirements of section 13 of the act
can and will be met.
SEC. 11. Every receipt, whether negotiable or nonnegotiable, issued for products stored in a field warehouse, shall, in addition to complying with the requirements of section 18 of the act and regulation 4 of the
applicable commodity regulations, embody within its
printed terms a statement that the warehouseman is
lessee of the warehouse.
SEC. 12. Warehouse receipts for products stored in a
field warehouse licensed under the act shall be issued in
the town or city where the warehouse is located, except that where two or more licensed field warehouses
are operated by a warehouseman receipts for all such
warehouses may be issued from a central point, provided such central point is not more than 25 miles
distant from the farthest warehouse. In cases where
receipts are issued from central points the warehouseman shall, when requested by the department representatives, provide transportation for such representatives, when engaged in regular inspection work, to and
from such warehouses.
SEC. 13. No field warehouse license shall be issued
by the Secretary, or his designated representative, unless the lessee is wholly disinterested with respect to
depositors and the application is supported by the
original lease and one copy, dated and signed by the
contracting parties, and embodying the following"
(a) A definite period of time not less than one year
after the date of execution, (6) a description of the
exact space leased to the field warehouseman and a
statement that all of such space is to be covered by the
license, if issued, and (c) evidence that said lease has
been duly recorded in the county where such warehouse
is located, except where there is a statutory inhibition
against the recording of such leases, and (d) a clause
prohibiting the cancellation of the lease or ejecting the
warehouseman so long as any receipt issued under the
act and the regulations is outstanding.
SEC. 14. A license to conduct afieldwarehouse under
the act shall not be issued, or if issued, shall not be
allowed to remain in effect, if any depositor agrees or
has agreed with the warehouseman to indemnify him
192
FEDERAL RESERVE BULLETIN
against loss due to failure of the warehouseman to
exercise such care of the products in his custody as a
reasonably prudent owner would exercise or as the
warehouseman is required to exercise under the act
and regulations.
SEC. 15. In the case of warehouses where approved
storage bins have been erected and such bins can be
sealed with seals furnished by the department for the
purpose, the bins may be licensed and the depositors
may, with the consent of the warehouseman, have
access to such bins for the purpose of placing goods
therein before the seals are affixed and before warehouse
receipts are issued by the warehouseman, or for the
purpose of removing goods therefrom after the outstanding receipts for all goods in such bin or bins have
been surrendered to and cancelled by the warehouseman, and the warehouseman or his custodian, or
assistant custodian, has broken the seals. Under no
circumstances shall anyone other than the licensed
warehouseman, the custodian, assistant custodian, or
duly appointed employees of the Department of
Agriculture in the performance of their official duties,
affix any seals to a licensed bin or remove a seal therefrom. Where bins are licensed no receipts may be
issued for products stored in any bin until after the
seals have been affixed, and no seals may be broken for
the purpose of delivering the products until the receipts
covering such products have been surrendered and
MARCH, 1933
cancelled. Seals may be broken to permit inspecting
and reasonable sampling of the goods; but such work
must be done by the licensed warehouseman, the
custodian, or an assistant custodian, and after inspect*
ing or sampling new seals shall be affixed to the bin.
SEC. 16. Paragraph 1. Each licensed field warehouseman shall, during the period of his license, maintain
suitable signs on the licensed property in such manner
as to give ample public notice that such property has
been leased by the warehouseman and is controlled and
operated by him. Such signs must be of such size and
be so affixed to the outside of each licensed building,
and at appropriate places within the building, as to
attract the attention of and give notice to the public
as to the real tenancy, and must be placed at each
point of entry to and exit from the licensed space.
Par. 2. Such signs shall include the following: (a)
The name and address of the licensee, (6) the name of
the warehouse, (c) the license number of the warehouse,
(d) a statement that the warehouseman is lessee, and
(e) the words "Public Warehouse."
Par. S. Such other wording or lettering as is not
inconsistent with the purpose of the act and these
regulations and is approved by the bureau may appear
in the sign or signs.
Par. 4- The warehouseman shall not permit signs to
remain on his licensed property which might lead to
confusion as to the tenancy.
193
FEDERAL RESERVE BULLETIN
MARCH, 1933
FEDERAL RESERVE STATISTICS, BY DISTRICTS, ETC.
DISCOUNTS BY MONTHS
DISCOUNTS BY WEEKS
[In millions of dollars]
[In thousands of dollars]
1932
1933
Wednesday series (1933)
Federal reserve bank
Federal reserve bank
February January February
Feb. 1
Boston
New York
Philadelphia
12.1
68.2
63.9
12.3
57.7
47.0
39.9
179,0
121.9
Cleveland
Richmond
Atlanta
37.8
18.2
19.2
24.5
16.2
17.5
121.7
36.4
48.9
26.2
5.7
10.4
16.1
7.9
10.2
79.9
22.0
14.3
14.7
4.1
36.1
11.7
4.4
29.8
38.6
14.6
130.5
Boston
New York....
PhiladelphiaCleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco.
306.5
255.3
847.6
Total...
Chicago
St. Louis
..
"fyririnflftpolip
Kansas City
Dallas
San Francisco
_
—
Total
Back figures—Bee Annual Reports for 1931 (Table 80), 1928 (Table
72), and 1927 (Table 55).
Feb. 8
Feb. 15
Feb. 21
11,928
57,572
45,123
11,382
54,042
46,141
11,694
58,187
49,236
55,582
25,454
16,249
19, 692
26,983
15,996
17,728
43,030
17,494
18,703
46,041
18,452
18,657
18,118
6,764
10,298
17,756
5,555
10, 253
18,825
5,520
10,174
38,099
5,575
10,409
12,723
4,119
40,650
14,438
3,926
28,440
15,061
4,024
34,425
14,978
4,166
39,060
252, 640
286,373
327,138
12,423
Back figures.—See Annual Report for 1931 (Table 83), 1930 (Table 78),
etc.
RESERVES, DEPOSITS, NOTE CIRCULATION, AND RESERVE PERCENTAGES
[Amounts in thousands of dollars]
Averages of daily figures
Total cash reserves
Federal reserve notes in
circulation *
Total deposits
Reserve percentages
Federal reserve bank
1932
1933
February
January
1932
1933
1933
1932
1933
1932
Febru- January
ary
February
February
February
January
February
151,576
220,940 162,336
992, 212 1,017,653 1,257, 902
131,778
233,215 135,031
126,944
848,019
126,282
190,957
600,972
245,940
189,696
564,858
231,820
183,859
576, 725
264,657
74.2
53.9
57.0
74.3
58.8
58.2
71.1
69.6
59.7
February
February
January
Boston
New York....
Philadelphia..
262,145
253,537
871,643 1,071,162
211,601
217,122
Cleveland
Richmond
Atlanta
260,468
112,875
93,314
256,850
99, 606
84,978
295, 111
108,613
107,917
145,168
69,627
49,337
149,223
58,807
47,759
151, 661
57,364
51,964
299,838
103,892
109,389
280,226
98, 530
97, 563
312,482
105, 595
120,671
58.5
65.1
58.8
59.8
63.3
58.5
63.6
66.7
62.5
Chicago.
St. Louis
914,923
135,581
69,252
872,811
120,965
61,961
660, 779
105, 053
70,948
416, 785
65,232
44,889
430,958
64,158
40,466
267, 918
62,090
43,987
759,105
136,155
86,535
689,087
122, 653
81,294
570, 770
93,216
77.8
67.3
52.7
77.9
64.8
50.9
78.8
67.6
63.0
Minneapolis-
60.1
71,544 101, 557
69,702
82,419
92,954
114,928
62.5
60.1
91,847
83,130
97,060
52,245
55, 785
52,961
56.3
50.2
49.7
41,800
36,371
49,426
43,192
46,296
37, 525
Kansas City..
154,379 247,983 229,559
214,207 162,002 150,461
63.7
64.1
242, 246
243,409
54.0
261,063
Dallas..
67.4
64.3
3,359,610 3,417,132 3,154,910 2,406, 264 2,602, 216 2,014, 397 2,918,694 2,714,658 2,663,844
63.1
San Francisco
Total—
1
Includes "Federal reserve notes of other reserve banks" as follows: Latest month, $11,663,000; month ago, $16,702,000; year ago, $14,185,000.
Back figures.—See Annual Report for 1931 (Table 8), and 1928 (Table 2).
194
FEDERAL RESERVE BULLETIN
M A R C H , 1933
EACH FEDERAL RESERVE BANK—RESOURCES AND LIABILITIES, ALSO FEDERAL RESERVE
NOTE STATEMENT, FEBRUARY 28, 1933
[In thousands of dollars]
Total
Boston
New
York
Phila- Cleve- RichAtdelphia land mond lanta
San
KanSt. Minne- sas
Chicago Louis apolis
Dallas Francisco
City
RESOURCES
Gold with Federal reserve agents
2,225,068 .70,327
Gold redemption fund with U. S. Treas1,673
ury
_
_
74,233
Gold held exclusively against Fed2,299,301 .72,000
. eral reserve notes
Gold settlement fund with Federal Re379,251 25,627
serve Board
Gold and gold certificates held by banks.. 273,198 12,881
386,453 .07,500206,1,470 88,495 57,770
24,378
9,190
9,325
2,183
3,972
410,831 116,690215,795 90,678 61, 742
784,850 .04, 515 47,990 80,280 30,655 159,763
9,363
1,777
2,206
2,353
794,213 106,292 50,196
1,210
31,865 166,366
7,104
6,839
90,518 19,999 14,133 22,411 16,036 22,973
21,903 2,487 2,222 6,629 2,790 22,822
, 951, 750 210,508
174,636 16,043
675,593 141,255 263,827 108,394 75,685
61,626 20,379 8,429 7,858 5,029
906,634 128,778 66, 551 111, 673 50,691212,161
10,121
8180 10121
20,808 6,361 3,171 6,631 8,180
3,126,386 226,551
67,872 4,414
737,219 161,634 272, 256 116, 252 80,714
18,293
3,346 2,563 3,431
927,442 135,139 69, 722 118,304 58,871 222,282
14,335 2,493 2,286 2,356 3,607 7,065
Bills discounted:
Secured by U. S. Government obligations. ._
Other bills discounted
325,493 4,564
256,941 10,261
158,472 64,480 35,417 11,751 2,385
35,924 48,502 39,382 18, 708 20,773
20,323
16,953
5,000
541 1,533
3,229 10,328 14,470
1,174 19,853
3,944 34,467
Total bills discounted.
Bills bought
582,434 14,825
336,018 40,806
194,396 112,982 74,799 30,459 23,158
89,242 19,249 7,964 12, 206 19, 643
37,276 8,229 10,869 16,003
54,428 16,635 13,890 9,600
5,118 54,320
3,361 48,994
U. S. Government securities:
Bonds
Treasury notes
Certificates and bills
420,846 19,740
450,385 23,977
995,146 59,395
187,234 30,909 36,361 9,917 10,036
184,173 34,716 45,810 12,493 12,617
356,504 71,516 94,369 25,739 25,992
39,903 13,957 17,281 11,758 18,019 25,731
50,265 16,953 12,266 14,595 10,105 32,415
183,807 34,922 25,242 30,067 20,816 66,777
Total U. S. Government securities. 1,866,377 103,112
4,552
Other securities
727,911137,141 176,540 48,149 48,645
4,014
525
273,975 65,832 54,789 56,420 48,940 124,923
13
789,381 158,743 , 015,563 269,897 259,303 90,814 91,446
268
347
3,515
1,
137
123
271
10,889
2,856
203
725
722
358,654 38,844 111,488 28,714 39,603 32,048 11,653
12,818 3,106 6,929 3,237 2,422
53,962 3,280
53,709
751
28,230 4,481 1 T "
3,092 5,450
365,679 90,696 79,561 82,023 57,419 228,237
478
17
102
102
245
12
2,207
722
251
835
756
445
29,275 13,830 7,066 17,955 11,207 16,971
7,595 3,285 1,746 3,559 1,741 4,244
1,705 1,153 2,008 1,312 1,530 2,138
Total gold reserves.
Reserves other than gold.
Total reserves.
Nonreserve cash
Total bills and securities
Due from foreign banks
Federal reserve notes of other banks
Uncollected items
Bank premises
All other resources
Total resources.
100,849 17,830 30,583 11,188
163,913 6,735 17,449 6,528
6,464,368 433,1221,927,765 472,104 584,539 248,868195,9611,348,716 247,335162,846 226,367 134,728482,017
LIABILITIES
Federal reserve notes in actual circulation- 3,417,319 208,323
751,771 279,604 374,994 133,023 117,847 886, 595 149,841 92,971108,305 40,040274,005
Deposits:
Member bank—reserve accountGovernment
Foreign bank..
Other deposits
,140,924 150,947
97
14,919
40,125 3,333
40,213
32
886,488 112,433 113,808 58,955
164
159
12,979
8.
9,713 4,795 4,521 1,781
14,554
213 3,213 3,010
113
1,598
776
Total deposits
Deferred availability i t e m s Capital paid in
Surplus
All other liabilities
, 236,181154,409
357,056 38,549
150,309 10,789
278,599 20,460
24,904
923, 734 117,605121, 701 63,754
103,123 29,173
30, 701
58,409 15,935 13,934 5,135
85,058 29,242 28,294 11,616
545 1,918 4,639
5,670
48,875
11,168
4,696
10,544
2,831
Total liabilities—.
Reserve ratio (per cent).
362,573 59,287 49,441 85,251 67,405147,',948
205
112
13
176
381
sir
5,936 1,553
1,324 1,324 3,197
3,679 5,674 1,050
481
7,590
602
372,393 66,626 51,605 87,069 69,294 159,,116
31,039 15,238 7,254 17,710 11,860 17,543
16,007 4,320 2,866 4,027 3,796 10,395
39,497 10,186 7,019 8,263 8,719 19, 701
3,185 1,124 1,131
993 1,019 1,257
433,1221,927,765 472,104 584,539 248,868 195,9611,348, 716 247,335 162,846 226,36:134,728482,017
54.8
73.7
44.0
40.
62.4
48.4
48.2
60.6
53.8
51.3
FEDERAL RESERVE NOTE STATEMENT
Federal reserve notes:
Issued to Federal reserve bank by
Federal reserve agent
, 3,678,832 229,529
Held by Federal reserve bank
261,513 21,206
In actual circulation
3,417,319 208,323
Collateral held by agent as security for
notes issued to bank:
Gold
2,225,068 170,327
Eligible paper
855,908 53,500
U. S. Government securities
611,600 7,000
819,047 287,705 385,512141,533 136,187
67,276 8,101 10,518 8,510 18,340
951,945157,',188 95,132116,993 44,021314,040
65,350 7,34; 2,161 8,688 " ^
40,035
751,771279,604 374,994133,023 117,847
886,595149,841 92,971108,305 40,040274,005
386,453107,500 206,470 88,495 57,770
268,140120,449 79,860 41,262 39,892
169,000 60,000100,000 12,000 42,000
784,850104,515 47,990 80,280 30,655159,763
86,681 23,711 22,984 21,694 7,274 90,461
81,000 29,200 24,700 16,000 6,700 64,000
195
FEDERAL RESERVE BULLETIN
MARCH, 1933
ALL MEMBER BANKS IN EACH DISTRICT
RESERVES HELD, EXCESS RESERVES, AND BORROWINGS AT FEDERAL RESERVE BANKS
[In millions of dollars]
Averages of daily figures
Reserves held
Federal reserve district
1932
1933
Borrowings at Federal
reserve banks
Excess
Total
1932
1933
1932
1933
January
December
January
January
December
January
January
December
147.2
1,230.3
127.0
119.8
1,205.0
126.5
126.2
856.8
121.9
34.2
294.3
10.7
7.8
290.8
9.6
5.5
10.6
1.5
12.3
57.2
47.0
14.0
62.8
50.6
47.0
188.2
119.2
Cleveland
Richmond
Atlanta _
141.5
52.8
44.2
139. 5
51.2
42.8
145.4
52.2
48.8
4.9
3.9
2.5
3.4
2.4
1.9
2.2
.9
2.1
24.5
16.2
17.4
29.0
17.0
21.4
123.8
43.1
45.6
Chicago
St. Louis
Minneapolis
420.6
59.1
38.3
399.1
56.5
39.0
269.0
60.0
42.9
180.1
5.5
4.1
9.8
3.0
2.3
16.0
7.9
10.1
17.8
7.6
11.4
84.5
24.5
9.5
67.0
46.4
141.7
65.8
45.8
143.4
71.0
48.9
136.1
197.6
8.0
4.8
9.0
5.3
8.5
7.2
4.5
8.6
5.4
3.5
-11.4
11.6
4.4
29.8
12.7
5.8
31.1
30.6
15.3
85.3
2, 515.9
2,434.6
1,979.1
583.8
525.8
35.4
254.4
281.3
816.6
Boston
New York
Philadelphia
_ _
Kansas City
Dallas
San Francisco
Total
.
___
.
January
Back figures.—For reserves held and borrowings at Federal reserve banks, see Annual Reports for 1931 (Tables 100 and 101), 1929 (Tables 91),
and 1927 (Tables 89 and 90).
NET DEMAND AND TIME DEPOSITS OF BANKS IN LARGER AND SMALLER CENTERS
[In millions of dollars]
Averages of daily figures
Member banks in larger centers (places over 15,000)
Time
Net demand
Federal reserve district
1933
Member banks in smaller centers (places under 15,000)
1932
1933
Net demand
1932
1933
Time
1932
1933
1932
January DecemJanuary January DecemJanuary January DecemJanuary January DecemJanuary
ber
ber
ber
ber
Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
MinneapolisKansas C i t y Dallas
San Francisco
Total-
1,018
6,179
671
1,955
628
1,971
608
712
1,937
611
76
192
138
78
200
142
226
157
350
343
987
301
296
981
293
283
1,038
295
298
128
76
55
127
77
53
1,482
356
188
1,773
405
213
1,141
279
188
1,158
290
189
1,338
316
211
131
81
91
381
285
819
384
286
834
429
316
929
212
163
1,504
213
161
1,495
219
164
1,549
164
132
13,767
13,578
13,818
8,324
8,311
8,687
1,349
951
6,854
830
940
6,675
960
330
301
957
334
1,517
362
176
137
466
138
465
147
510
412
148
87
70
253
159
253
158
62
273
170
72
134
85
94
94
121
221
91
183
227
96
186
277
102
215
134
198
152
118
111
32
112
31
125
33
122
1,628
2,201
2,216
2,458
196
FEDERAL RESERVE BULLETIN
MARCH, 1933
WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES
PRINCIPAL RESOURCES AND LIABILITIES BY DISTRICTS AND FOR NEW YORK CITY
AND CHICAGO
[In millions of dollars]
City
Federal Reserve District
Total
Loans and investments:
Feb. 1....
Feb. 8
Feb. 15.
Feb. 21
Loans:
Feb. 1
Feb. 8
Feb. 15
Feb. 21
On securities—
Feb. l._
Feb. 8 . . .
Feb. 15
Feb. 21
All other—
Feb. 1 . . .
Feb. 8
Feb. 15
Feb. 21
Investments:
Feb. l._
Feb. 8
Feb. 15
Feb. 21 .
U. S. Govt. securities:
Feb. 1
Feb. 8
Feb. 15
Feb. 21
All other—
Feb. 1
Feb. 8
Feb. 15
Feb. 21
Reserve with F. R. bank:
Feb. 1
Feb. 8
Feb. 15.
Feb. 21
Cash in vault:
Feb. 1
Feb. 8...
Feb. 15
Feb. 21
Net demand deposits:
Feb. 1
Feb. 8
Feb. 15
Feb. 21
Time deposits:
Feb. 1.
Feb. 8
_
Feb. 15
Feb. 21..
Government deposits:
Feb. 1..
Feb. 8
Feb. 15
Feb. 21.
Due from banks:
Feb. 1
Feb. 8
Feb. 15
Feb. 21.
Due to banks:
Feb. 1..
Feb. 8
Feb. 15
Feb. 21
Borrowings from F. R. banks:
Feb. 1
Feb. 8
Feb. 15
Feb. 21
' Revised.
Boston
Min- Kansas
San New ChicaRich- Atlan- Chica- St.
New Philadel- CleveLouis neapta
City Dallas FranYork phia
land mond
go
go
olis
cisco York
18,725
18,573
18,571
18,257
1,154
1,151
1,164
1,168
8,193
8,044
8,045
7,775
1,070
1,070
1,075
1,074
10,166
10,028
10,083
9,865
657
655
664
669
4,101
3.985
4,048
3,848
574
574
673
576
4,259
4,204
' 4,206
4,199
270
262
261
254
1,889
1,853
1,859
1,865
5,907
5,824
' 5,877
5,666
387
393
403
415
8,559
8,545
8,488
8,392
1,705 7,222
1,703 7,073
1,698 7,078
1,689 6,809
1,019
1,051
1,052
1,048
950
945
943
938
3,521
3,405
3,472
3,274
641
640
638
636
69
68
69
67
236
235
233
232
1,643
1,606
1,614
1,621
349
343
343
343
158
155
154
151
153
152
149
149
714
710
710
706
1,878
1,799
1,858
1,653
292
297
295
293
124
123
122
122
267
267
267
268
149
149
142
143
755
758
755
751
3,701
3,668
3,606
3,535
378
411
414
412
132
127
126
125
57
58
57
57
149
149
149
150
94
95
89
89
422
427
425
421
2,600
2,572
2,522
2,452
181
213
215
212
315
316
317
317
121
121
118
118
67
65
65
65
118
118
118
118
55
54
53
54
333
331
330
330
1,101
1,096
1,084
1,083
197
198
199
200
28
28
28
27
369
359
352
373
37
42
39
42
18
20
21
27
51
55
57
61
28
29
29
31
87
91
89
86
967
924
775
782
310
303
289
314
7
11
8
8
39
42
9
9
5
5
14
15
8
10
5
5
13
14
6
8
'60
82
J.RRfi
554
543
551
561
503
501
497
1,981
2,008
2,007
2,004
508
503
504
293
290
289
500
371
1,883
L, 881
1,843
498
496
494
369
360
359
1,059
1L, 056
nao
295
294
294
295
312
312
310
311
1,331
1,326
1,321
1,319
261
260
259
261
171
170
168
167
233
231
229
226
222
220
218
216
289
289
289
291
478
477
477
474
111
110
111
110
105
105
105
106
578
570
'569
567
106
106
106
106
53
53
52
52
75
76
75
75
2,212
2,132
2,189
1,983
285
285
284
285
581
579
579
565
184
184
183
185
207
207
205
205
753
756
'752
752
155
154
153
155
118
117
116
115
497
496
500
499
4,092
4,059
3,997
3,927
496
496
502
498
827
827
825
804
259
249
257
266
190
191
191
186
650
682
686
685
253
248
244
243
5,253
5,248
5,206
5,115
309
307
309
308
2,752
2,725
2,675
2,609
238
237
242
239
509
510
510
490
148
138
146
155
108
109
109
104
335
366
369
368
3,306
3,297
3,282
3,277
188
189
191
191
1,340
1,334
1,322
1,318
258
259
260
259
318
317
315
314
111
111
111
111
82
82
82
82
1,994
1,977
1,794
1,814
116
126
122
117
1,017
93
93
79
108
108
105
104
42
55
47
39
193
213
14
15
43
48
10
21
23
12
12
'249
283
15
15
11,899
11, 699
'11,552
11,286
971
826
830
77
11
]1,056
36
33
15
18
502
514
295
53
59
13
14
741
725
741
752
6,308
6,159
5,993
5,818
649
653
653
642
843
836
831
791
273
270
272
272
209 1,300
205 1,285
203 '1,288
198 1,279
293
293
289
288
154
151
151
144
5,648
5,626
5,608
5,499
403
1,284
1,273
1,270
1,223
299
804
234
184
802
235
868
295
290
799
789
235
233
201
198
198
196
875
298
406
396
184
183
182
300
245
14
12
126
103
26
21
26
21
17
14
9
7
16
13
6
3
25
22
19
17
19
15
13
10
3
2
405
863
837
13
14
338
332
335
333
7
8
223
221
222
217
149
176
147
175
147
145
175
174
130
129
1
4
3
2
2
34
38
17
18
32
42
568
569
574
552
42
48
5,862
5,717
5 545
5,380
928
923
919
915
130
909
859
320
130
911
849
317
907
905
847
803
315
302
13
11
8
6
34
28
20
14
114
92
71
54
11
9
7
5
16
17
190
148
8
6
79
61
1,832
1,734
1,563
1,287
199
197
180
157
157
148
143
124
158
151
121
87
116
104
73
78
108
106
92
77
74
65
56
58
407
365
317
211
91
95
92
77
78
77
73
59
147
142
139
124
109
112
113
97
188
172
164
138
78
75
73
72
309
275
242
153
3,558
3,440
3,218
2,778
181
176
178
155
1,721
1,603
1,481
1,234
221
219
207
168
253
252
227
188
110
118
100
92
85
81
74
69
380
372
349
316
110
111
105
96
55
57
56
53
160
162
159
153
97
104
101
89
185
185
181
165
1,655
1,537
1,418
1,176
293
287
268
240
81
9
70
100
130
6
9
12
6
7
7
13
12
14
30
33
4
3
5
6
10
11
11
11
4
4
5
19
2
1
2
1
1
2
4
5
4
2
2
32
20
26
30
197
FEDERAL RESERVE BULLETIN
M A R C H , 1933
RATES CHARGED CUSTOMERS BY BANES IN PRINCIPAL CITIES OF EACH DISTRICT
Loans secured by prime stock- Loans secured by warehouse
exchange collateral
receipts
Prime commercial paper
Federal reserve
bank or branch city
1933
1932
1932
1933
Interbank loans
1933
1932
1933
1932
5 -6
5 -6
5
Philadelphia
4 -5
4}
4^
Cleveland
Cincinnati
Pittsburgh
4 -6
5}4-6
6
4 -fi
5)^~6
5)
5
5^
Richmond._ . . . __Baltimore
Charlotte
3}
5 -6
4) i-6
5 -6
5 -6
55 -6
53^£-6
Minneapolis
Helena
5 -6
53
4-6
5^-6
4-fi
5H-6
5}4-fi
5^-6
41
5
5 -6
6
5 -6
53^-6
6
534-6
6
5)4-6
6
6
4^-6
6
5 -6
6
5 -6
6
53-S-6
^-4K
^-6
2
2
7 -8
2 -5
7 -S
4
6 -8
Kansas City
Denver.
Oklahoma City
Omaha __
41 - 6
4 4-fi
6
4}
4M-6
4^
6
5 -5K
Dallas
El Paso_
Houston
San Antonio
3 -fi
3 -6
7 -8
53*4~fi
6 -7
San Francisco _ _
Los Angeles
Portland
Salt Lake City
Seattle .
Spokane
5
5>4-6
6
6
7 -8
5
6
4-fi
5 -5H
534-6
6
6
53^-6
6
5
3S
5
OSOS
2-6
-6
5K-6 4
6
4}
4-6
%
5
5 -6
5
5 -fi
5
fi
fi
6
fi
6
5}i-6
6
6
6
6
534-7
6
53^2-7
6
4 ^5
4 :
534 6
fi - 8
6 -8
53/
K
434-53/2
5 -6
53^-fi
6
6 2
5
5 -6
5 -6'
6
4 -fi
63^-7
6
4 -6
7
6
5 -fi
6 -7
6
5 -6
634-7
6
4 -6
7 -8
4 -6
7 -8
5 -6
6 -8
2 -4
6 -7
2
fi - 7
4
6 -8
5H-6
6
8
5}4-7
5M-6
6
8
534-7
53'^-6
fi
8
534-7
4}
fi -8
6 -8
6 -6H
43. 2
fi - 8
6 -8
6
55V
6 -7
6 -7
71 - 8
5 4-7
6 -7
5 -7
31-4-7
51'
6 -8
53^-6
6 -8
7 -8
6
5 -fi
5 -6
6
534-7
53^-7
6 -7
6 —63^
6
6
5 -6
5 -6
6
6
5H-7
7 -8
5341
fi
5 -6
4V6-fi
6 -8
6 -8
by
2
fi
6 -7
4 -5
5 -6
6
6 2
6
fi -fiU
6
6
5
6
6
fi
6
7 -8
5 -7
8
5 -6
6 -7
2
6 -6H
5 -6
5 -7
6
6
6H-7
2
67
6 -7
7
6>
53
4-
4 -5
5
63
414-5
534-6
4 -5M
fi - 8
6 -8
fi - 8
fi - 8
414-fi
4 -5
2
CO 00
43/
6 -6Yo
6"
6
4 -5
4 -5
5-
5 -7
fi - 8
6 -8
4^
5 -53^
5
5
5
6
6 -8
6 -8
41
5 -6
5 -8
4
6 -7
6
2
5 -6
5 -6
6
OS
5 -6
5
4
OSOS
St. Louis
Little Rock
Lousiville
4}4-VA
CO
5}i-6
3
5}
4 -5
6
6
Chicago
Detroit
531-6 '
43>
4M-8
5 _7
6
534~6
!>•
4 1 4-8
5
5)4-6
4-w
-5
4-
5 -6
4
CO
4
5
3 -4
4 -5
4 -5
CO
_
5
3 -4
4 -5
5
CO
Atlanta
Birmingham
Jacksonville
Nashville
New Orleans
1
5 -5^
-5
-8
fi
8
53-f-6
6 -6M
6- 7
7
«V*-7
6>^2-7
53/<-fi
6 -8
6 —6^4
6 -ey2
6Mr1
634-7
fi
fi
6
fi
5}4-6
5 -5H
5*
i-6
5
6 --!M
7
534-6
5 -5H
53/2-6
4?
5- 6
6 -7
53^-6
5 -fi
6
5 -fi
534-6
6 -7
534-6
6 -7
6 -8
5>
53-^-6
6
6
6
fi
6
6
5
5 -fi
5
6
5
6
6
6 -7
fi
6
5 -5U
5 -fi
5
6
5 -5K
6
6
6 -7
fi
6
NOTE.—Rates at which the bulk of the loans of each class were made by representative banks during the week ending 15th of month.
from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the largest banks in their respective cities.
6
6
534-6
6 -6M
OSOS
4-
OS
4
3 -4
OS
3 -4M
3 -4
Cn
3
New York
Buffalo
OS
Boston.
OS
February January February February January Febi •uary February January February February January F e b r u a r y
5
gi 4-fi
4V
fi
5
6
fi
6
6
6
Rates
198
FEDERAL RESERVE
BULLETIN
MARCH, 1933
OTHER BANKING AND FINANCIAL STATISTICS
SHIPMENTS AND RECEIPTS OF AMERICAN
CURRENCY TO AND FROM EUROPE
MATURITY DISTRIBUTION OF BILLS AND
SHORT-TERM SECURITIES
[In thousands of dollars]
BY SELECTED BANES IN NEW YORE CITY
[Paper currency only. I n thousands of dollars]
1932
1933
Net
ShipShipReReshipments ceipts
ments ceipts ments
from
to
from
to
(-)or
Europe Europe receipts Europe Europe
Month
(+)
January .
February
March
April
May.
June
July
August
September
October
November
December
26
0
0
0
0
12
20
162
36
7
70
245
.
Total
3,335 +3, 310
5,221 +5,221
8,468 +8,468
4,663 +4,563
10,938 +10,938
16,265 +16,253
6,694 +6,674
6,458 +6,306
6,603 +6,567
6,294 +5,287
6,013 +5,943
3,986 +3,742
3
105
Net
shipments
(-)or
receipts
5,304
5,689
(+)
+5,301
+5,484
For description and back figures see BULLETIN for January, 1932,
pp. 7-9.
91 days
Within 16 to 30 31 to 60 61 to 90 to 6 Over
6mos.
15 days days
Bills discounted:
Feb. 1
268,690 189,603 20,796 27,747 20,084 9,066 1,394
Feb. 8
252,640 173,661 19,978 28,259 19,979 9,256 1,507
1,937
Feb. 15
286,373 203,195 19,631 29,926 22,787
Feb. 21
327,138 239,487 21,807 31,696 23,619 8,642 1,887
Bills bought in
open market:
Feb. 1
31,338 7,184 5,020 8,654 10,480
Feb. 8
31,338 7,581 8,733 5,148 9,876
Feb. 15
30, 784 6,407 8,411 5,799 10,167
Feb. 21
179, 576 64,812 30,319 35,753 48,481
211
Certificates and
bills:
Feb. 1
1,008,547 82,800 89,950 203,031 203,897 128,526 300,343
Feb. 8
_ 963,847 73, 550 50,000 203,031 203,897 128,525 304,844
Feb. 15
950,165 89,950 169,301 63,250 174, 497143,825 309,342
Feb. 21
960,551 89,950138,686 92,250 197, 797 130,525 311,343
Municipal warrants:
Feb. 1
3,415 3,377
Feb. 8
3,435 3,397
Feb. 15
4,797 4,769
Feb. 21...
4,697 4,672
MEMBERSHIP IN PAR-COLLECTION SYSTEM
UNITED STATES POSTAL SAVINGS
[Number of banks at end of January]
[Balance to credit of depositors. In millions of dollars]
Nonmember banks
Member^banks
* On par list
1933
United States.
Boston
.
New York
Philadelphia
Cleveland
Atlanta
Chicago-.
St. Louis
Minneapolis
Kansas City . .
Dallas
San Francisco
End of month
Not on par list
1932
1933
1932
1933
1932
6,661
7,138
7,892
8,927
3,006
3,147
367
748
692
631
391
317
775
411
539
775
576
439
371
836
710
648
396
342
875
450
574
815
609
512
222
262
300
760
424
131
2,155
1,082
312
1,396
409
439
226
335
341
780
437
146
2,506
1,198
382
1,597
460
519
5
358
696
247
402
813
218
219
48
6
365
786
243
389
871
215
219
53
Figures cover all incorporated banks (other than mutual savings
banks).
January
February
March
April
May
June
July
August
September..
October
November..
December—.
v Preliminary.
1928
148.9
151.1
152.0
152.2
152.0
152.1
151.7
152.2
152.3
153.1
153.9
163.9
1929
153.5
154.8
155.0
154.3
153.8
153.6
157.8
160.1
160.3
161.6
163.7
164.3
1930
1931
1932
165.1
167.9
169.5
170.2
171.2
175.3
180.7
186.5
189.8
192.5
200.7
245.4
665.6
278.4
691.8
292.1
705.3
302.7
722.1
313.8
742.6
325.0
784.8
347.4
372.5 828.5
848.5
422.7
469.9 857.4
538.1 870.8
885.2
565.5
605.1 J-900.2
1933
P942.5
1,500.6
199
FEDERAL RESERVE BULLETIN
MARCH, 1933
BANK SUSPENSIONS AND BANKS REOPENED
BANK SUSPENSIONS AND BANKS REOPENED, BY DISTRICTS
[Banks closed to public either temporarily or permanently, on account offinancialdifficulties by order of supervisory authorities or directors of the
bank. Thefiguresdo not include banks closed temporarily under special or "moratorium" holidays declared by civil authorities. Figures
for banks reopened during given period include reopenings both of banks closed during that period and of banks closed in prior periods. Deposits (including those of banks reopened) are as of date of suspension where available, otherwise as of the latest available call date preceding
suspension]
[Figures for latest month are preliminary]
Banks suspended
Banks reopened
Number
Deposits (in thousands of
dollars)
Members
Members
Deposits (in thousands of
dollars)
Number
Federal reserve district
All
banks
Year, 1932 (revised):
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
-St. Louis
M!inneaDolis
Kansas City
Dallas
San Francisco
Total
February, 1933:
Boston
NPW York
Philadelphia
Cleveland
Richmond
Atlanta
Chicaco
St Louis
IVf inneaDolis
Kansas City...
San Francisco
Total
January-February, 1933:
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Non- All
mem- banks
Na- State bers
tional
1
1
11
14
27
58
70
89
507
155
136
205
38
146
2
10
10
22
12
21
78
22
25
28
10
36
6
22
6
1,456
276
55
5
2
2
8
4
36
36
13
27
2
1
1
1
1
2
4
2
5
2
2
12
2
148
1
2
3
13
NonmemNa- State bers
tional
3
10
7
19
41
27
77
38
14
24
10
20
2
3
7
2
11
1
8
4
1
1,125 715,626 214,150 55,153 446, 323
290
44
2
1
2
7
32
30
11
22
10,117
303
366
1,230
572
1,329
3,408
2,230
2
8
5,402
511
1,490
3,401
20
7
121
72,870
15,881
7,788
49,201
7
4
10
16
19
97
94
29
71
4
3
1
2
5
12
10
6
13
1
2
1
9
14
14
82
70
23
58
6,131
15,101
3,462
20,358
13,916
39,393
39,035
9,151
16,634
3,531
660
13,286
835
10,517
10, 995
6,056 4,092
7,243 15,488
3,367
2,691
1,940
1,815
2,627
9,841
2,921
29,245
16,304
5,784
13,943.
34
6
24
41,704
12,161
1,942
27,601
389
64
3
—--.
22
Members
NonNon- All
mem- banks
memNa- State bers
Na- State bers
tional
tional
4,031 10,258 58,274
20, 580
797
4,396
24, 324
6,358
22, 655
512 13,703
14, 526
39,020
8,386 2,655 12,535
70,092 29,197 163,450
16,159 5,610 24,218
6,681
21, 218
9,064
481 21,042
3,941
433
5,179
31,677 5,210 58,964
8 72,563
3 25,773
17 30,682
35 36,870
58 53,546
62 23, 576
407 262, 739
127 45,987
111 27,899
175 30, 587
9,553
25
97 95,851
3,779
2,089
145
18,235
1,083
21,109
9,392
4,048
7,174
3
14
Members
All
banks
303 207,890
1,179
274
660
1 940
1,815
145
8,118
780
17,335
5,932
3,476
5,845
71,819 22,182 113,889
3
2
1
6
1
i 17
30
12 26
i 65
4
1
133
13
24
7
2
U6
8
6,300
8,571
2,271
8,987
23,274 2,117 12,170
7,446 7,446
168,645
69,645 1,000
16,225
29,377 13,152
111,308
680
11,988
79,343 17,301 1,930 160,112
794
339 i 9,943
11,076
4,450
5,582 1,132
4,234
4,234
1,536
5,767 4,231
960 112,788
19,891 6,143
238 276,194 56,267 15,399 204,528
1
1
2,894
2,894
2
32
7,812
3 7,812
3
3
4
3
3
4
675
557
696
675
557
696
8
8
2,324
2,324
21
21
14,958
14,958
2
2
5,659
5,659
4
7
10
6
10, 766
3,627
1,378
4,525
852
11
2,624
40
29,431
4
1
7
10
6
4
1
4
11
41
1
UO, 766
3 627
4
1,378
4,525
852
2,624
3,627
25,804
i At time of suspension the following number of banks with deposits as indicated, were State member banks: Cleveland district, 7 banks with
deposits of $42,333,000; Atlanta district, 2 banks with deposits of $889,000; Chicago district, 9 banks with deposits of $36,151,000; St. Louis district,
1 bank with deposits of $400,000, and San Francisco district, 1 bank with deposits of $5,691,000.
»Includes 1 newly organized bank with 4 branches, which took over 6 banks previously suspended.
»At time of suspension 1 bank in Cleveland district with deposits of $7,290,000 was a State member bank.
* At time of suspension 3 banks in Cleveland district with deposits of $10,244,000, and 1 in Atlanta district with deposits of $269,000 were State
member banks.
Backfigures.—SeeBULLETIN for February, 1932, also Annual Reports for 1931 (Table 123), 1930 (Table 117), 1929 (Table 111), 1928 (Table 115),
1927 (Table 111), and 1926 (Table 98).
200
FEDERAL RESERVE BULLETIN
M A R C H , 1933
BANK SUSPENSIONS AND BANKS REOPENED—Continued
BANK SUSPENSIONS AND BANKS REOPENED, BY STATES, JANUARY 1 TO DECEMBER 31, 1932
[Banks closed to public either temporarily or permanently, on account of financial difficulties, by order of supervisory authorities or directors of
the bank. The figures do not include banks closed temporarily under special or ' 'moratorium'' holidays declared by civil authorities. Figures
for banks reopened during given period include reopenings both of banks closed during that period and of banks closed in prior periods. Deposits
(including those of banks reopened) ar eas of date of suspension where available, otherwise as of the latest available call date preceding suspension]
[Revision of preliminary data published in January Bulletin]
Banks suspended
Banks reopened
Deposits (in thousands of
dollars)
Number
Deposits (in thousands of
dollars)
Number
State
Members
NonAll
All
mem- banks
banks Nabers
State
tional
New England:
Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
Middle Atlantic:
New York
New Jersey
Pennsylvania
East North Central:
Ohio.
Indiana
Illinois
Michigan..
Wisconsin
West North Central:
Minnesota
Iowa
Missouri
North Dakota
South Dakota
Nebraska
Kansas
South Atlantic:
Delaware
Maryland
- District of Columbia
Virginia
West Virginia
North Carolina
South Carolina
Florida
East South Central:
Kentucky
Tennessee
Alabama
Mississippi
West South Central:
Arkansas
Louisiana
Oklahoma
Texas
Mountain:
Montana
Idaho
Colorado
New Mexico
Arizona
"Utah
Nevada
Pacific:
Washington
Oregon
California
Total
5
1
6
1
10
8
8
42
5
20
1
1
26
68
209
87
67
2
12
46
5
4
11
11
62
147
80
14
9
24
8
3
3
1
23
6
51
69
3
9
1
4
1
1
4
9
2
6
31
18
25
2
5
3
g
11
38
28
18
-
-
1
2
2
2
10
1
3
6
3
National
State
Members
NonNon- All
mem- banks
mem- All
bers
Na- State bers banks
tional
3
29,678
1,334 10,258
18,086
5
42,885
2,697
40,188
2
15, 316
14, 369
50,937
12,016
10,680
22,208
1
1
2
1
3,300
2,892
28,217
5
1
797
512
7
6
4
5
24 8,293
56 37 216
152 126,878
71 36,358
63 18, 769
1,678
11,366
46,796 18,955
2,634 7,363
2,932
6,615
25 850
61,127
26,361
15,837
15
11
23
36
16
1
53 12,029
120 75, 710
71 13,903
11 1,066
5,183
17
46 6,884
60 9,386
2,302
18,314
4,324
243
1,027
408
3,304
9,727
5,561 51,835
455 9,124
823
4,156
481
5,995
6,082
4
5
7
4
792
3 5,520
4 3,497
879
7
4
922
26 14,129
15 28,976
15 3 947
9
3,977
792
839
2
21
27
25
9
12
1
13
14
32
1
1
9
1
1
35
10
3
8
24
2
3
6
5
16
2
24
1
6
18
7
1
14
16
2
28
26
33
5
8
14
5
4
1,456
276
55
11
2
Members
11
12
23
22
1
6
12
14
339
411
9,967
3,239
986
1,494
4,186
1,616
3,155
10,493
4,806
5,797
1,944
2,347
1,285
455
925
85
680
5,432
8,240
8,526
1,364
11,620
878
2,844
83
5,862
9,816
17,531
839
4,219
3,941
126
531
433
716
7,408 "~173
'
1,090
354
863
5,556
2,521
1,653
4,681
3,497
540
511
4,162
25, 737
2,122
2,483
3,960
3,190
1,357
1,489
714
4,221
4 021
4,152
648
4,039
878
1,754
83
5,508
8,953
11,975
5
3
2
13
3
402
402
8,169
1,869
3
18,453
9,389
5,575
6,178
2,509
i 14
11
17
130
14
4
14
7
4
1,205
30, 639
1,013
597
13
3
2,650
536
792
2,957
792
8
567
1
2
1
1
591
11
14
8
2
6
4
5
10
8
i2
12,961
11,800
2,215
667
4
8
1
5
3
15
1
1
1
507
65,009
577
5,725
10,018 5,092
30,968 10,092
9,364 2,220
1
8
Nonmembers
6,300
12,170
5,776
3,211
3,066
64,432
5 725
628 1 4,298
1,302 19, 574
7,144
1,205
129,230
1,013
597
1,409
2,650
536
2,957
24
4,918
7,258
2,215
1 667
8,043
4,542
4
933
7
5
3
115
1,084
642
863
7,411
160
5
117
6
1,216
6,079
254
680
933
924
642
863
17,411
339
623
7
8
6
10
3
7
5,767
4,231
1,536
8
1
7
8,254
5,258
2,996
3
2,194
2
12
2
1,223
6,726
1,494
5
2
2
3
2
1
1,125 715,626 214,150 55,153 446,323
290
44
3,955
3,731
10,673
1
3
National State
1
3
1
1
17,288
2,648
9,497
18 23,764
14 8,032
19 20,170
1
Members
8
238
15,399
613
613
960
885
1,234
1,223
15,841
1,494
276,194 56,267 15,399 204,528
1 At time of suspension the following number of banks, with deposits as indicated, were State member banks: Ohio, 7 banks with deposits of;
$42,333,000; Michigan, 8 banks with deposits of $9,293,000; Iowa, 1 bank with deposits of $26,858,000; Georgia, 1 bank with deposits of $358,000
Mississippi, 1 bank with deposits of $400,000; Louisiana, 1 bank with deposits of $531,000; and Oregon, 1 bank with deposits of $5,691,000.
»Includes 1 newly organized bank with 4 branches, which took over 6 banks previously suspended.
Backfigures.—SeeAnnual Reports for 1931 (Table 124), 1930 (Table 118), 1929 (Table 112), 1928 (Table 116), 1927 (Table 112), 1926 (Table 100),
and 1925 (Tables 97 and 98).
201
FEDERAL RESERVE BULLETIN
MARCH, 1933
BANK SUSPENSIONS AND BANKS REOPENED—Continued
BANK SUSPENSIONS AND BANKS REOPENED, BY STATES, DURING FEBRUARY, 1933
[Banks closed to public, either temporarily or permanently, on account of financial difficulties, by order of supervisory authorities or directors of the
Ipank. The figures do not include banks closed temporarily under special or "moratorium" holidays declared by ciril authorities. Figures
for banks reopened during given period include reopenings both of banks closed during that period and of banks closed in prior periods.
Deposits (including those of banks reopened) are as of date of suspension where available, otherwise as of the latest available call date preceding
suspension]
[Figures are preliminary and subject to revision]
Banks reopened
Banks suspended
Number
Deposits (in thousands of dollars)
Deposits (in thousands
of dollars)
Number
State
All
banks
New England:
Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
Middle Atlantic:
New York
New Jersey
Pennsylvania
East North Central:
Ohio
Indiana
Illinois
Michigan
"Wisconsin
West North Central:
3
3
1
2
9
23
4
6
-
Iowa
Missouri
North Dakota
South Dakota
Nebraska
Kansas
South Atlantic:
Delaware
Maryland
District of Columbia
Virginia
West Virginia _
North Carolina
South Carolina
Georgia
.
-
._
7
3
20
Members
NonmemNa- State bers
tional
1
2
1
1
4
1
1
1
2
1
3
14
9
4
1
1
1
Members
All
banks
National
State
267
1,186
660
175
1,151
270
3,000
408
1
1
1
1,454
2,599
1,815
2
7
18
3
6
145
5,796
13,424
2,166
1,077
5
3
19
2,939
718
4,759
3
10
9
418
3,646
3,059
1,125
1
4,954
10,117
10,117
572
1,160
Nonmembers
Mem- NonAll
All
banks bers members banks
NonMem- members bers
1
1
2,894
2,894
2
1
12
1
7,812
142
J 7,812
142
2
2
415
415
4
4
696
696
7
7
1,991
1,991
3
3
675
675
1
1
333
333
21
21
14,958
14,958
527
1,413
1,815
145
2,621
11,865
1,896
1 077
2,367
718
3,599
418
2,521
3,059
4,954
4
2
4
2
2,948
216
2,948
216
1
5
1
5
290
881
290
881
2
2,143
3
2
1
2
424
645
50
366
2
1
1
463
86
333
204
2
1
3
2,995
294
1,650
511
121
72,870
15,881
Florida
East South Central:
Kentucky
__ _ _ _
Tennessee
Alabama
Mississippi
West South Central:
Arkansas
Louisiana
Oklahoma
Texas
__ _
Mountain:
M!ontana
Idaho
Wyoming
Colorado
New Mexico
Arizona
Utah
Nevada
Pacific:
Washington
Oregon
California
- Total
4
1
1
3
2
1
2
2
1
2
1
4
1
5
2
148
20
2
7
303
1,070
424
645
50
366
463
86
129
1,490
1,505
294
1,139
7,788
49,201
* At time of suspension 1 bank with deposits of $7,290,000 was a State member bank.
770
ALL MEMBER BANKS—CONDITION ON CALL DATES DECEMBER 31, 1929, TO DECEMBER 31, 1932
[Amounts in thousands of dollars)
1929
Dec. 31
1930
Mar. 27
June 30
1931
Sept. 24
Dec. 31
Mar. 25
June 30
1932
Sept. 29
Dec. 31
June 30
Sept. 30
Dec. 31
EESOURCES
Loans (including overdrafts)
._
United States Government securities
Other 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 banks in United States
Due from banks in foreign countries (including own branches) ___
Exchanges for clearing house and other checks on local banks
Outside checks and other cash items
.
_
Redemption fund and due from United States Treasurer
...
Acceptances of other banks and bills of exchange or drafts sold
with indorsement
Securities borrowed
Other assets
26,150,061 25,118, 783 25, 213, 770 24, 738,011 23, 870, 488 22,839, 946 21,816, 243 20, 874,084 19, 260,685 16,587, 18515,923,84115,204,050
4,124, 776 5,002, 262 5, 343,032 5, 564,461 5, 318, 654 5,627,854
3,862,968 4,085,006 4, 061, 395
"' " ~
6,539,706
6,864, 247 6,886, 357 6, 763, 2476, 634, 689 5,995, 786 5, 785, 764
5,920,921 5, 851,908 6, 380, 494
15,055,697 35,655,659 35,472,250 31,859,51134,728,565
(4,728,565 33,922,522 33,073,234 30,575,125 28; 000; 803 28,044,683 27^ 469^ 470
35,933,950 35,
"~ 912,852 1,117,833 1,035,978 888,454 662,415 718, 500 458,952 440,276
1,252,147 1,
' 111, 153 928,807
1,190, 306 1, 202,486 1,217, 963 1,230, 754 1,240,444 1,239,935 1, 234, 404 1, 220, 317 1,174,957 1,166, 263 1,167, 763 1,150) 245 *
183,989 188,815 190,995 197,869 191,169 199,935 206,569 209, 518 211, 755 233, 014 253, 342 268,945
558,450 496, 633 484, 262 470, 367 592, 504 461, 267 519,135 554,150 522,551 478, 224 406,688 422,838
2, 373, 760 2, 352, 738 2, 407,960 2, 414,991 2,474, 509 2, 364, 478 2, 396,421 2, 339, 230 1,975,169 1,997, 656 2,234,919 2,511,374
757, 216 524, 765 629,418 531, 691 598, 285 419, 706 387,225 449,848
994, 373 719, 201 836, 471 698,871
2,167, 756 1,901, 517 2, 360, 377 2, 462, 827 2, 455, 948 2, 791, 204 2, 517, 096 1, 935,119 1, 662, 226 1, 730, 770 2,048,644 2,415, 656
263,834 247,612 220, 793 202,447 260, 818 296,376 351,320 215, 692 174,183 192, 619 175, 377 193,881
2, 762,463 1, 616,954 2, 645,057 1,146,915 2,076,189 975, 215 1, 771,312 959, 218 1,388,409 859, 340 802,881
92, 766
43,344
51, 706
47,102
139,056
65,331 118, 552
87,358
58,092
50,696 108,128
77,406
32, 318
32,264
32,604
37,627
32,823
32,001
32, 548
32,658
31,524
31, 372
39,242
735,193
35,533
219,379
612,193
25, 744
231,482
557, 748
26, 324
223,114
592, 732
23,866
242,062
662, 686
21,069
222,911
524,104
24,822
300,024
452,045
20, 279
260, 254
329, 756
17,150
249,067
310, 502
13,473
223,687
55,022
11,664
216, 388
18,558
11, 259
233, 501
14,869
12,928
226,281
48,843,078 45,860,379 47, 906, 740 46,153,113 47,057,891 45, 542, 276 45, 288, 588 42,378,39,688,322
777
35,911,061 36, 309,845 36,259,926
Total.
LIABILITIES
2, 757,113 2, 744,975 2,721,997 2,728,664 2,665,151 2,657,172 2,620,606 2,580,550 2,499,098 2,440,467 2,431,688 2,409,859
Capital stock paid in
2,864, 612 2,881,944 2,870,800 2,903,258 2,822,091 2,804,906 2,741,351 2,695,285 2,524,460 2,366,239 2,262,122 2,148,260
Surplus
„
909, 548 956,053 950,072 1,009,435 894,388 910,480 804,199 811,456 605,403 510,696 516,491 438,521
Undivided profits—net
177,252 176,610 182,940 185,602 211,407 225,483 264,068 271,408 370,368 343,518 360,860 412,529
Reserves for contingencies i
51,915
54,458
46,206
47,147
49,267
43,323
41,073
41,070
48,381
38,362
32,196
36,663
Due to Federal reserve b a n k s . .
_
_
3,517,325 3, 204,316 3,831,656 3,817,132 3,872,842 4,236,451 4,004,077 3,222,466 2,882,296 2,870,029 3,268,854 3,607,649
Due to other banks in United States
576,664 498,07;~ 571,766 660,612 634,927 566,579 657,285 747,282 433,740 200,569 262,676
Due to banks in foreign countries (including own branches)
1,603,562 1,134, 283 1,493,437 771,941 1,223,777 626,747 999,310 617,053 729,301 503,336 464,006
Certified and officers' checks outstanding
25,038
23,460
41,389
26,638
20,960
22,506
33,231
23,701
19,581
24,475
17,958
15,250
Cash letters of credit and travelers' checks outstanding.._
18,861, 582 17,078; 905 18,061,977 16, 838,35117,501, 550 16, 338, 728 16,622, 224 15,526,182 14,955,400 13,203,732 13,081,243 13,393,235
Demand deposits
13,233, '"—
\ 811,978 13,944,868 13,546, 20113, 663, 258 13,515,468 12,776,332 11,315,842 10,636,02110,601,689 10,549, 579
Time deposits
_
_
143,203
280,769 257,185 267,415 502,204 395,397 526,161 411,845 387,463 737,769 474,741
United States deposits
38,013,735 35,836,156 38,139,178 36,363,874 37,116,939 35,999,796 36,268,065 33,480,247 30,746,386 27,863,987 28,466,39128,742,997
Total deposits
_
_
Agreements to repurchase U. S. Government or other securities
66,214
136,957
37,164
38,144 158,141
23,599
42, 111
15,371
25,303
81, 583
45,579
sold
Bills payable and rediscounts:
646,334 206,124 273,880 172,578 248,017 165,106 146,819 323,354 622,652 440, 504 331,345 234,524
With Federal reserve b a n k s . . .
232,188 140,467 161,090 143,402 107,151 116,336
70,079 142,357 216,476 374,619 365,404 312,261
Allother
Acceptances of other banks and bills of exchange or drafts sold
735,193 612,193 557,748 592, 732 662,686 524,104 452,045 329,756 310,502
55,022
18,558
14,869
with indorsement
1,276,159 1,125,907 925,576 929,337 1,138, 624 1,063,334 901,351 681,145 732, 253 483,064 448,440 429,738
Acceptances executed for customers
Acceptances executed by other banks for account of reporting
24,654
29,647
15,031
18,127
15,553
6,912
11,514
13,197
14,169
5,416
7,335
banks
645, 562 647,481 649,098
639,640 642,284 636,041 628,334 624, 234 648,906 739,793 776,749
National-bank notes outstanding
25,
744
26,324
21,069
24,822
35,533
23,866
20,279
17,150
13,473
11,664
11,259
12,928
Securities borrowed
137,660 175,896 148,960 182,397 121,190 158,416 127, 345 162, 507
98,668 109,927 129,969
73,276
Interest, taxes, and other expenses accured and unpaid
245, 585 239,961 226,915 212,698 236,366 210,885 209,455 216, 728 228, 597 192,553 179,998 200,501
Other liabilities
48,843,078 45,860,379 47,906,740 46,153,113 47,057,89145, 542,276 45,288,588 42, 378, 777 39, 688, 322 35,911,061
36,309,845 36,259,926
Total
Number of banks
-
i Prior to Dec. 31,1932, included reserves for dividends, etc.
8,522
8,406
8,315
8,052
7,928
7,782
7,246
6,980
6,904
6,816
B
Iw
d
NATIONAL AND STATE MEMBERS—CONDITION ON DECEMBER 31, 1932, BY CLASSES OF BANKS
[Amounts in thousands of dollars]
Total
State bank members
National banks
All member banks
Central Other rereserve serve city Country
banks
city
banks
banks
Total
Central Other
reserve reserve Country
banks
city
city
banks banks
Total
Central Other
reserve reserve Country
banks
city
city
banks banks
RESOURCES
Loans (including overdrafts).—
_
United States Government securities...
Other 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 banks in United States
Due from banks in foreign countries (including own branches)
Exchanges for clearing house and other checks on local banks
Outside checks and other cash items
Redemption fund and due from United States Treasurer
Acceptances of other banks and bills of exchange or drafts sold with
indorsement
Securities borrowed.
Other assets
15,204,050 4,169,417
6, 539, 706 2,831,066
5, 725, 714 1, 372,126
37,469,470 8,372,609
412, 248 360,810
1,150, 245 277,050
18, 676
64, 373
422,838
2, 511, 374 1,416, 793
149,075
449, 848
2, 415. 656 409,108
151, 600
193; 881
594, 695 386, 954
5,427
77. 406
1,220
39, 242
14,869
12,928
226, 281
4,290
82,682
5,541,560 5,493,073
2, 234,362 1,474, 278
1, 713, 569 2, 640,019
9,489,491 9,607,370
4,254
47,184
412,190 461, 005
108,038 142, 231
126, 473 231, 992
646,104 448,477
97, 228
203, 545
1, 239,605 766,943
2,645
39, 636
49, 270
158,471
17, 211
54, 768
24,430
13, 592
9,678
5,382
91, 546
901
7,546
52, 053
., 5711., 890,954 1 , 393,383
5,375,908 2, 091,
9, 828,142 2, 077,846 3, 650,>,606 4,
~~ *
1 , 212,694 2, 784, 3271,893, 283 629, 460 261,584
3,755,379 937, 783 1.', 604,902
572, 347
3, 815,311 696,453 1,., 051,186 2 , 067,672 1, 910, 403 675, 673
!,797 2,,227,314
17,398,832 3,712,
,306,694 7;,380,056 10,070,638 4,660,527 3,182,
2,168
"
213,845 199,866 11,811
2,086
198, 403 160, 944
35,373
758, 676 119,821 275,122 363, 733 391, 569 157, 229 137,068 97, 272
12, 407 50, 392 36,387
169, 759
99,186
57, 646 105, 844
306, 349 26, 555 90,528 189, 266 116, 489 37, 818 35, 945 42, 726
885,534 590, 916 194, 224 100, 394
1, 625,840 825,877 451, 880 348,083
279, 014 65, 529 146, 798 66, 687 170, 834 83, 546 56, 747 30, 541
1,849, 678 271,404 952, 317 625, 957 565, 978 137, 704 287, 288 140,986
930
5,851
54, 546
47, 765
1,715
139, 335 103, 835 33, 785
16, 335
32, 935 279,141 218, 370 44,436
315, 554 168, 584 114,035
2,930
3,594 10, 035
60, 847
16, 559
14, 281
1,833
44, 733
39, 242
24, 430
1,220
13,592
5,422
8,027
113, 958
1,560
26, 957
3,148
2,409
52, 401
714
5,618
34,600
9,447
4,901
112, 323
2,730
55, 725
6,530
2,973
39,145
187
1,928
17,453
36, 259, 92611, 700, 667 12, 645, 703 11,913, 556 23, 268,936 5,492,470 8, 580,461 9,196,005 12, 990,990 6, 208,197 4, 065, 242 2, 717, 551
Total..
LIABILITIES
Capital stock paid in
_
Surplus
Undivided profits—net
Reserves for contingencies
Due to Federal reserve banks
Due to other banks in United States
Due to banks in foreign, countries (including own branches)
Certified and officers' checks outstanding..
___
Cash letters of credit and travelers' checks outstanding
Demand deposits
_
Time deposits
_
_
United States deposits
Total deposits
Agreements to repurchase U. S. Government or other securities sold.
Bills payable and rediscounts:
With Federal reserve banks
_
All other
Acceptances of other banks and bills of exchange or drafts sold with
indorsement
Acceptances executed for customers
Acceptances executed by other banks for account of reporting banks..
National-bank notes outstanding-_
Securities borrowed.
_
_
Interest, taxes, and other expenses accrued and unpaid
Other liabilities
.-Total
Number of banks
_
753,899
783, 044 872,916
831, 628
655,811
660,821
134,090
135,397 169.034
186, 242
140,803
85,484
7
8,004
28,652
1,841,180 1, 503,241 263,228
21, 470
1,307
273, 212
129, 656
61,105
179,130
3,651
226
11,373
5, 507,956 4, 280, 757 3,604,522
1, 255,858 4, 217,439 5,076, 282
210,912
191,438
72, 391
9,260,15410,1,375,130 9,107,713
12,291
19,900
13,388
45, 579
2, 409,859
2,148, 260
438, 521
412, 529
36,663
3, 607,649
295,989
369,891
15, 250
13, 393,235
10, 549, 579
474,741
28,743,997
234, 524
312,261
14,869
429,738
7,335
776, 749
12,928
73,276
200, 501
13,172
4,290
376,004
3,703
21,315
24,656
78,126
778,800
338,470 248,758 191, 572
1,631,059 415,429 534,286 681, 344
523,978 295,419 157, 648
977,045
1,171, 215 307,650 365,402 498,163
98,900
35,190
169, 324
39,506
30,918
95,891 138,116
269,197
114, 318
71,924
64, 863 29,840
245,902
75,940
55, 644
166, 627
7
6,674 20,998
8,991
1,330
7,654
27,672
58,989
2,210, 690 881, , 900 1, 124, 551 204, 239 1,396,959 959, 280 378, 690
819
14, 308
88,911
96, 561
7,162
488
199, 428 184,301
98,102 43,996
78,052
149, 741 101,078
31, 554
17,109
220,150
3,506
5i
3,104
_,_..
8,585
8,269
145
171
6,665
8, 264,158 2, 557,436 2,966,929 2,739,1,793 5,129,077 2,950, 520 1, 313,828 864, 729
646,759 2,773,476 3,939,1,454 3,189,890 609,099 1, 443,963 1, 136,828
7,359,689
53,869
126, 934
224,139
18,522
64,504 132, 229
78,683
250, 602
18,539,054 4,416,056 ,119, ~ ,003,223 10,203,943 4,844,098 3 255,355 2 104,490
18,304
12,388
22, 053
1,000
23, 526
1,596
9,542
2,749
40,987
74,279
193, 537
224,810
185,015
163, 513
9,678
51,324
1,654
268,087
5,382
28,077
58,749
901
2,410
1,978
487,347
7,546
20, 543
63,626
5,422
207, 285
2,747
776,749
8,027
46,147
74,826
154, 759
144,124
49, 509
148,748
10,731
55,062
38,778
13,000
714
1,761
354
487,347
5,618
2,409
17,951 12,962
17,129 19,376
9,447
222, 453
4,588
2,730
208,333
2,755
6,530
13,471
209
187
649
1,624
4,901
27,129
125, 675
9,422
39,805
2,973
10,126
41,620
1,928
7,581
44, 250
172
30, 256
19, 217
1,560
167,671
948
21,315
3,148
37,853
1,445
15,234
38,321
36,259,926 11,700,667 12,645,703 11,913,556 23,268,936 5,492,470 8, 580,461 9,196, 005 12,990,990 6,208,197 4,065,242 2,717,551
6,816
48
322
6,446
6,011
20
232
5,759
805
28
90
687
i
204
FEDERAL RESERVE BULLETIN
MARCH, 1933
INDUSTRIAL PRODUCTION, BY INDUSTRIES
[Index numbers of the Federal Reserve Board, 1923-1926 average=100]
Without seasonal adjustment
Industry
1933
Manufactures—Total
28
19
29
92
92
67
75
76
31
129
138
111
94
103
116
79
86
138
93
63
IRON AND STEEL
Pig iron
Steel ingots
TEXTILES.
_
Cotton consumption
Wool
Consumption
Machinery activity
Carpet and rug-loom activity
Silk
Deliveries
Loom activity—
FOOD PRODUCTS
Slaughtering and meat packing
Hogs
Cattle
Calves
_
Sheep
Wheat flour
Sugar meltings
_
P A P E B AND PRINTING
Wood pulp and paper
Newsprint
Book paper
Wrapping paper
Fine paper
Box board
Wood pulp, mechanical
Wood pulp, chemical
Paper boxes
Newsprint consumption
7
59
119
94
23
LUMBER
TRANSPORTATION EQUIPMENT:
Automobiles
Locomotives
Shipbuilding
._
40
3
64
LEATHER AND PRODUCTS
December
84
January
58
24
18
24
86
86
68
77
74
32
113
118
103
86
95
109
70
79
126
88
51
81
74
64
87
57
64
85
65
73
112
97
20
70
41
32
42
94
87
65
73
67
38
156
179
111
98
110
124
84
87
174
85
71
99
92
75
99
81
96
103
81
89
138
112
'23
32
2
60
38
1
17
79
77
77
P79
Tanning
Sole leather
Upper leatherCattle
Calf and kip
Goat and kid—
Boots and shoes
1933
1932
January
73
Adjusted for seasonal variation
1932
January
December
January
D64
29
19
30
87
88
66
72
118
121
0
89
86
87
78
93
137
95
95
59
135
98
26
71
43
32
44
89
83
64
71
123
133
)
84
79
83
67
83
129
92
89
86
80
64
88
58
67
105
65
75
137
94
23
2
142
157
I
93
92
93
83
93
173
86
108
101
93
74
98
82
95
106
80
91
157
116
r26
45
2
24
85
79
"(T)
80
54
96
81
73
65
101
CEMENT AND GLASS:
Cement
Glass, plate
NONFERROUS METALS !—Tin deliveries.
40
'69
47
72
65
'78
FUELS, MANUFACTURED:
Petroleum refining.Gasoline
Kerosene
Fuel oil
Lubricating oil
Coke, by-product
132
165
88
93
76
57
54
56
38
107
52
144
71
63
57
102
42
46
36
_.._
RUBBER T I R E S AND T U B E S .
Tires, pneumatic
Inner tubes
.
TOBACCO PRODUCTS
Cigars
Cigarettes
Minerals—Total..
Bituminous coal...
Anthracite coal
.._,
Petroleum, crude
Zinc
Lead
Silver
141
178
76
96
87
67
85
88
64
116
63
153
74
65
59
107
48
60
36
132
132
)
76
2
2
140
0)
75
8*
61
42
113
68
147
73
57
53
107
40
45
67
70
44
112
60
149
76
66
75
96
38
'39
Includes also lead and zinc; see4< Minerals."
Without seasonal adjustment.
NOTE.—For description see BULLETIN for February and March, 1927. For latest revisions see BULLETIN for March, 1932, pp. 194-196.
v Preliminary.
* Revised.
1
132
169
82
89
68
57
46
48
32
91
45
123
72
70
74
93
39
'39
30
92
95
70
124
82
156
77
58
54
111
45
59
39
205
FEDERAL RESERVE BULLETIN
MARCH, 1933
FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES
[Index numbers of the Federal Reserve Board; adjusted to Census of Manufactures through 1927. 1923-1925 average=100]
Factory employment
Factory pay rolls
Without seasonal adjustment Adjusted for seasonal variation Without seasonal adjustment
Industry
1932
1933
Jan.
Total
IRON AND STEEL AND PRODUCTS
Steel works and rolling mills
Hardware
Structural iron work
Heating apparatus.._
Steam fittings
Stoves
Cast-iron pipe
MACHINERY
-
Foundry and machine-shop products—.
Machine tools
Agricultural implements
Electrical machinery
TEXTILES AND PRODUCTS-
A. Fabrics
Cotton goods.__
Woolen and worsted manufacturesWoolen and worsted goods
Carpets and rugs
Hoisery and knit goods
Silk manufactures
Dyeing andfinishingtextiles
B. Wearing apparel
Clothing, men's.
Shirts and collars
Clothing, women's—
Millinery
-
FOOD AND PRODUCTS
Baking
-Slaughtering and meat packing
Confectionery
Icecream
Flour
Sugar refining, cane
*.
—
-•
PAPER and PRINTING
Printing, book and job
Printing, newspapers and periodicals
Paper and pulp
Paper boxes
LUMBER AND PRODUCTS
Lumber, sawmills
Lumber, millwork
Furniture
-.
-.
-
TRANSPORTATION EQUIPMENT
Car building and repairing.
Automobiles
Shipbuilding
~
LEATHER AND MANUFACTURES
Boots and shoes
Leather
CEMENT, CLAY, AND GLASS PRODUCTS
Clay products
Brick, tile, and terra cotta
Pottery
Glass
Cement
NONFERROUS METAL PRODUCTS
Stamped and enameled ware
Brass, bronze, and copper
CHEMICALS AND PRODUCTS
Chemicals and drugs
Petroleum refining
Fertilizers
RUBBER PRODUCTS
Automobile tires and tubes
Rubber boots and shoes
TOBACCO MANUFACTURES
Cigars and cigarettes..
Chewing and smoking tobacco, snuff...
58.1
49.6
53.2
49.3
43.7
37.4
34.6
40.2
30.8
44.0
42.3
39.4
36.0
49.3
69.6
72.8
74.9
61.1
63.7
47.4
83.4
61.4
87.4
61.7
48.2
61.1
80.7
63.6
78.6
81.4
80.1
79.1
62.9
73.7
69.8
80.2
77.1
94.2
75.0
69.4
33.8
29.2
31.2
48.4
46.1
41.3
50.4
60.9
73.3
74.6
68.1
36.7
30.4
20.4
57.4
52.2
31.0
44.4
21.4
52.3
76.2
80.2
75.0
54.9
59.1
61.3
52.7
60.4
58.8
72.6
Dec.
59.6
52.1
54.9
50.7
45.8
45.4
37.6
52.5
33.1
46.0
44.4
39.0
34.1
51.5
71.1
74.1
75.2
61.2
63.7
48.4
89.7
61.4
88.3
63.4
50.4
73.2
82.8
51.4
81.5
83.1
81.7
89.6
63.4
74.2
72.7
81.6
78.2
95.1
75.8
74.1
36.6
31.6
33.9
52.6
44.8
42.7
45.2
62.4
70.0
70.3
68.6
41.4
36.1
25.4
65.3
56.2
34.0
46.8
23.6
54.8
75.4
79.6
75.4
47.8
61.8
62.2
60.3
68.8
68.7
70.0
1933
Jan.
66.3
62.8
65.8
60.4
67.4
47.9
48.8
47.1
51.9
61.2
54.9
59.4
51.0
76.3
71.6
73.4
73.0
59.7
60.0
58.2
84.3
71.5
93.9
66.9
51.6
68.6
91.3
59.4
84.2
88.8
86.8
78.5
70.0
76.3
77.0
89.0
92.3
99.8
80.4
76.9
42.4
35.3
44.4
61.0
53.9
43.9
63.4
84.3
75.7
77.5
68.3
47.7
42.6
33.1
68.6
59.1
45.7
56.8
31.4
65.4
81.7
85.9
81.2
56.3
69.1
69.7
67.2
69.0
68.4
74.2
Jan.
59.4
50.6
53.9
49.0
45.0
40.9
35.7
45.7
32.2
44.5
43.2
39.4
34.8
49.2
69.2
72.2
73.9
59.8
62.4
46.3
84.3
61.7
86.8
61.5
48.3
60.6
78.7
67.3
79.6
83.4
77.4
80.7
73.4
74.0
74.9
79.6
75.3
93.8
75.1
69.8
35.0
30.6
32.0
49.3
47.4
42.0
53.3
59.1 ,
72.9
74.4
66.9
39.4
32.8
23.3
58.5
55.7
34.0
44.8
22.3
52.5
76.4
79.7
76.4
56.2
59.7
62.6
51.2
64.9
64.3
69.4
1932
Dec.
60.6
52.8
55.8
50.7
46.2
46.1
39.5
52.1
33.9
46.4
45.3
38.9
34.2
51.5
70.4
72.9
73.7
59.3
61.6
47.4
89.4
61.2
87.0
64.0
51.3
70.4
84.0
53.4
80.0
83.7
77.8
81.2
72.3
73.7
77.9
80.2
76.3
93.4
75.9
71.1
36.8
32.2
34.4
51.3
47.4
42.8
51.6
62.4
72.0
72.9
68.3
42.6
37.1
26.8
65.1
57.7
35.3
47.4
24.6
55.2
75.2
78.3
76.3
51.7
63.2
65.4
56.3
67.7
67.7
68.0
1933
Jan.
68.1
64.0
66.6
60.1
69.4
52.1
50.4
53.6
54.3
61.8
56.0
59.4
49.3
76.3
71.1
72.9
72.0
58.4
58.7
56.8
85.2
72.0
93.3
66.6
51.7
68.1
88.9
62.9
85.3
90.9
83.8
80.1
81.7
76.7
82.7
88.3
90.2
99.4
80.4
77.4
43.9
36.9
45.6
62.3
55.6
44.4
67.1
81.9
75.4
77.4
67.1
51.6
46.3
37.6
70.0
63.0
50.2
57.4
32.7
65.8
81.9
85.3
82.8
57.7
69.7
71.2
65.2
74.3
74.7
71.0
Jan.
39.2
22.7
23.3
23.9
21.8
19.6
19.1
20.1
15.0
26.0
22.6
24.5
26.4
34.0
44.2
46.6
47.1
38.9
42.1
24.1
55.9
39.0
62.9
39.2
27.3
35.9
54.1
41.7
64.1
67.4
66.6
57.3
52.3
61.0
51.3
67.0
64.3
86.8
49.0
53.5
16.3
13.4
16.3
22.4
34.0
30.8
36.3
46.6
43.7
41.7
50.9
20.2
13.4
8.0
28.0
36.0
16.1
27.5
14.3
31.4
60.7
60.6
64.6
36.4
35.4
34.8
38.0
38.3
35.4
61.7
NOTE.—For description of these indexes see BULLETIN for November, 1929, pp. 706-716, and November, 1930, pp. 662-677.
161485-33 7
1932
Dec.
40.9
24.2
23.8
26.7
25.6
25.0
21.8
28.1
16.9
28.0
24.9
23.6
25.1
36.2
46.4
50.1
48.4
40.8
43.6
27.7
68.5
41.9
64.0
39.1
26.7
49.3
54.4
32.8
66.1
68.7
67.6
67.5
52.1
61.1
55.9 i
69.8
66.2
90.1
50.9
60.4
18.8
15.2
18.4
27.0
33.8
33.5
32.0
52.4
42.0
38.7
53.9
23.3
17.5
10.2
36.8
37.8
18.4
30.1
15.6
34.3
59.8
60.5
62.8
34.1
39.8
36.7
52.2
50.4
49.5
57.8
Jan.
52.4
36.3
35.7
40.4
47.3
29.8
30.8
28.8
34.9
44.5
36.4
43.6
38.6
64.4
55.5
57.1
53.7
46.5
48.0
39.8
68.3
57.6
83.8
52.4
37.8
47.5
72.8
50.2
78.6
82.8
82.4
70.3
69.6
67.4
62.3
85.5
88.8
103.5
63.1
68.3
26.6
20.3
30.2
37.9
44.3
38.0
47.7
81.2
53.3
52.5
56.3
31.1
24.1
16.4
44.3
44.9
31.4
44.9
26.2
50.4
71.4
71.4
75.9
45.4
53.0
54.3
48.3
53.0
51.0
69.5
206
FEDERAL RESERVE
BULLETIN
MARCH, 1933
WHOLESALE PRICES, BY GROUPS OF COMMODITIES
[Index of Bureau of Labor Statistics (784 price series); 1926=100}
Other commodities
All
commodities
Farm
products
Foods
19281929193019311932-
98.7
95.3
86.4
73.0
64.8
105.9
104.9
88.3
64.8
48.2
101.0
99.9
90.5
74.6
61.0
92.9
91.6
85.2
75.0
70.2
121.4
109.1
100.0
86.1
72.9
95.5
90.4
80.3
66.3
54.9
84.3
83.0
78.5
67.5
70.3
97.0
100.5
92.1
84.5
80.2
94.1
95.4
89,9
79.2
71.4
95.6
94.2
89.1
79.3
73.5
95.1
94.3
92.7
84.9
75.1
85.4
82.6
77.7
69.8
64.4
1932—January
February. _
March
April
May
June
July
August
September.
October
November..
December..
1933—January
67.3
66.3
66.0
65.5
64.4
63.9
64.5
65.2
65.3
64.4
63.9
62.6
52.8
50.6
50.2
49.2
46.6
45.7
47.9
49.1
49.1
46.9
46.7
44.1
64.7
62.5
62.3
61.0
59.3
58.8
60.9
61.8
bl.8
60.5
60.6
58.3
71.7
71.3
70.9
70.9
70.4
70.1
69.7
70.1
70.4
70.2
69.8
69.0
79.3
78.3
77.3
75.0
72.5
70.8
68.6
69.7
72.2
72.8
71.4
59.8
59.8
58.7
57.0
55.6
53.9
52.7
54.0
57.0
55.0
53.9
53.0
67.9
68.3
67.9
70.2
70.7
71.6
72.3
72.1
70.8
71.1
71.4
81.8
80.9
80.8
80.3
80.1
79.9
79.2
80.1
80.1
80.3
79.6
79.4
74.8
73.4
73.2
72.5
71.5
70.8
69.7
69.6
70.5
70.7
70.7
. 70.8
75.7
75.5
75.3
74.4
73.6
73.1
73.0
73.3
72.9
72.7
72.4
72.3
77.7
77.5
77.1
76.3
74.8
74.7
74.0
73.6
73.7
73.7
73.7
73.6
65.6
64.7
64.7
64.7
64.4
64.2
64.3
64.6
64.7
64.1
63.7
63.4
61.0
42.6
55.8
67.3
68.9
51.9
66.0
78.2
70.1
71.6
72.9
61.2
Year and month
Hides and: Textile Fuel and Metals Building Chemi- House- Miscelleather products lighting and metal materials cals and furnish- laneous
Total products
drugs ing goods
materials products
1931
1933
1932
Subgroups
Nov.
Dec.
Jan.
Feb. Mar.
Apr. j May
June
July
51.3
55.7
63.1
47.0
51.7
61.2
46.7
53.4
54.8
46.1
50.3
52.7
43.5
51.4
52.1
80.7
73.1
65.1
67.7
68.0
79.8
72.2
63.5
63.2
67.2
67.8
71.0
62.2
61.9
61.9
92.5
49.0
78.8
101.1
89.2
48.8
78.6
99.7
72.6
58.1
59.0
41.8
64.2
72.5
Aug. Sept.
Oct.
Nov.
Dec,
44.5
49.2
51.2
42.6
44.4
49.6
37.7
46.*
48.2
36.7
54.1
48.4
38.2
52.8
50.8
37.4
51.2
52.1
34.4
45.0
52.1
33.2
41.9
53.9
31.7
38.7
51.3
32.9
37.8
48.7
64.1
69.6
61.8
59.5
59.4
64.2
61.6
68.3
68.2
62.3 1 62. 3
61.4
59.8
55.8
57.1
68.1
61.5
56.5
54.9
57.4
66.8
62.4
56.0
55.4
58.2
65.7
59.7
62.0
58.5
60.2
66.0
55.6
61.9
62.1
60.6
65.8
52.5
60.9
64.6
60.5
64.1
52.2
56.4
65.4
62.3
62.7*
52.4
53.7
67.7
59.5
61.7
52.8
49.4
66.1
55.2
60.9
53.0
49.5
60.1
49.0
77.5
98.9
88.5
46.1
76.5
98.8
88.5
44.7
73.4
98.8
88.4
40.8
67.2
98.0
88.4
35.7
60.6
97.9
87.5
32.5
58.7
96.4
84.4
33.5
60.0
83.7
84.4
39.3
60.0
82.3
84.4
48.2
63.2
81.5
84.6
49.6
64.1
81.9
84.2
46.1
61.9
81.9
83.8
41.7
59.2
81.9
83.3
43.0
57.1
78.2
70.8
56.4
58.5
39.0
63.9
71.3
70.7
55.8
55.8
37.7
63.3
70.7
70.6
56.4
55.8
36.5
63.1
69.7
69.0
56.2
54.9
33.5
62.7
69.5
G8.7
55.1
51.9
31.3
59.7
68.2
68.2
52.9
50.5
29.1
58.3
67.2
67.4
51.0
49.6
27.5
55.0
66.7
66.0
50.0
47.8
26. 2
53.6
66.5
66.0
52.6
48.5
29.5
53.4
67.4
67.3
57.9
60.4
32.6
56.7
68.6
62.5
56.2
50.9
30.8
56.5
67.7
62.2
53.6
51.0
29.6
55.3
67.1
62.5
51.7
49.3
29.3
54.2
66.6
61.9
50.1
48.4
27.0
63.4
94.2
83.7
81.4
103.4
100.1
42.5
94.8
83.8
81.1
104.1
98.2
39.6
94.8
84.4
80.5
107.5
98.6
38.8
94.8
84.3
80.4
104.8
98.0
38.6
83.5
80.4
104.4
97.5
39.8
85.7
82.7
79.8
103.5
99.1
45.5
85.6
82.0
77.1
106,1
103.0
47,2
85.3
81.8
76.9
105.5
106.3
48.2
84.5
81.6
76.3
105.8
108.3
49.7
86.0
81.3
76.7
104.4
107.0
48.9
87.7
81.1
76.7
103.4
107.6
46.7
88.7
81.1
76.7
104.6
104.4
47.4
88.8
80.4
75.6
103.1
100.0
48.2
88.7
80.2
75.3
104.1
96.5
45.0
88.7
79.8
75.3
85.5
81.5
95.2
54.7
85.5
81.0
95.2
53.8
85.5
79.9
95.3
55.4
85.1
79.3
95.3
52.7
85.0
79.7
95.3
50.5
38.7
85.0
80.1
93.8
49.3
84.9
80.0
93.8
48.3
84.9
79.8
93.8
47.5
84.9
77.2
95.3
47.0
84.9
78.7
95.3
48.5
84.9
79.7
92.7
51.6
84.7
80.4
92.7
50.7
84.6
79.4
92.7
49.1
84.5
78.8
93.0
48.3
84.5
78.5
91.3
46.4
81.4
74.6
65.9
77.5
81.4
81.7
81.9
80.0
74.6
65.8
76.6
79.9
81.7
81.5
79.3
75.2
65.6
75.4
74.1
77.3
81.0
79.3
75.3
62.9
75.1
65.8
77.9
80.2
79.3
75.0
61.5
75.4
64.4
79.7
80.6
78.4
75.0
60.0
74.7
64.4
81.7
80.2
77.4
75.0
59,5
73.9
64.4
81:7
78.2
76.1
77.1
57.6
73.3
66.7
81.7
77.6
75.9
77.3
56.9
66.8
67.1
81.7
77.9
75.2
79.0
55.5
67.2
67.1
81.7
78.3
75.4
79.0
56.3
68.2
66.8
81.7
79.9
75.3
79.0
56.6
68.3
67.5
81.7
80.0
75.4
79.0
56.6
68.5
67.5
81.7
80.1
75.1
81.1
56.5
68.1
67.5
81.7
80.1
74.9
81.2
55.9
68.1
62.8
81.7
79.4
80.6
61.3
70.1
77.7
80.8
61.0
70.1
77.1
80.6
60.6
69.9
75.5
80.8
60.1
69.8
73.7
80.9
59.7
68.6
73.2
79.7
58.9
70.1
71.1
79,1
58.7
69.4
69.0
78.6
58.3
68.0
69.0
78.9
57.6
66.8
68.8
79.7
57.0
66.4
68.3
79.8
56.6
63.6
66.9
79.8
55.9
63.4
66.5
79.7
55.0
63.5
65.6
79.7
54.7
63.1
65.6
79.3
54.9
62.3
62.7
79.7
82.3
76.6
80.6
76.1
79.5
75.9
79.5
75.4
79.1
75.4
77.4
75.5
74.1
75.4
74.0
75.1
73.0
74.8
72.6
74.7
72.7
74.7
72.8
74.7
72.7
74.7
72.7
73.5
72.3
46.0
59.8
80.8
9.6
86.7
40.8
53.9
80.8
9.5
85.9
39.7
53.0
78.0
9.3
85.2
39.5
48.2
76.7
8.6
84.4
39.2
52.4
76.8
7.2
84.5
39.2
53.4
76.8
6.6
84.5
39.2
45.9
76.5
6.7
84.6
39.6
42.1
76.2
5.8
84.6
40.1
42.2
76.2
6.1
84.5
40.1
47.4
76.3
7.9
84.2
42.7
45.9
75.5
8.2
83.2
44.6
42.7
73.4
7.3
82.1
44.6
40.8
73.4
7.2
81.5
44.6
37.1
73.0
6.8
81.3
44.6
38.2
72.0
6.5
76.8
Jan.
F A R M PRODUCTS:
Grains
Livestock and poultry
Other farm products
FOODS:
Butter, cheese, and milk
Cereal products
Fruits and vegetables
Meats
Other foods
_.
H I D E S AND L E A T H E R PRODUCTS:
Boots and shoes
Hides and skins
Leather
Other leather products
T E X T I L E PRODUCTS:
Clothing
Cotton goods
Knit goods
Silk and rayon
Woolen and worsted goods...
Other textile products
F U E L AND LIGHTING MATERIALS:
Anthracite coal
Bituminous coal
Coke..
Electricity
Gas
Petroleum products
M E T A L S AND M E T A L PRODUCTS:
Agricultural implements
Iron and steel
Motor vehicles
Nonferrous metals
BUILDING M A T E R I A L S :
Brick and tile
Cement
Lumber
Paint materials
Plumbing and heating
Structural steel
Other building materials
CHEMICALS AND D R U G S :
Chemicals
___
Drugs and Pharmaceuticals..
Fertilizer materials
Mixed fertilizers
HOUSEFURNISHING GOODS:
Furnishings
Furniture
Auto tires and tubes
Cattle feed
Paper and pulp
Rubber, crude
Other miscellaneous-
MISCELLANEOUS:
_
Bachfigures,—Forindexes of groups see BULLETIN for March, 1932, p. 199; indexes of subgroups available at Bureau of Labor Statistics,
207
FEDERAL RESERVE BULLETIN
M A R C H , 1933
CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION
[Value of contracts in millions of dollars; figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation]
Residential
Total
Factories
Commercial
Public works
and public
utilities
Educational
1932
1932
1932
Month
1932
January
February
March
April
May
June
July
August
September
October
November
December.
_
Year
1932
1933
83.4
84.8
89 0
112.2
121.7
146.2
113.1
128 8
134.0
127.6
107.1
105 3
27.5
24 4
33.2
28.9
25.6
23.1
19 7
20.8
22.8
21.9
19 2
13.0
8L2
1932
1933
1933
9.1
10.1
10.6
12.9
12.2
13.0
3.3
6.7
5.7
24.1
28.3
29.9
47.3
61.7
50.1
60.0
64.2
68.7
58.5
54.2
43.3
43.5
122.7
590.3
3.4
44
4.5
4.5
3.0
2.1
12.0
280.1
1,351. 2
1933
4.3
3.5
8.3
3.3
6.3
3.2
19
18.4
8.8
70
CONSTRUCTION CONTRACTS AWARDED, BY
DISTRICTS
5.8
1933
1932
1933
4.4
10 8
42.7
All other
16.3
11 0
24.2
17.5
37.2
17.6
30.8
21.9
13.5
13.1
19 9
1.4
9.8
10.7
6.5
7.2
64
5.5
74
3.6
34
6.7
9.2
82.3
232.3
1933
17.3
BUILDING PERMITS ISSUED, BY DISTRICTS
[Value of permits in thousands of dollars]
[Value of contracts in thousands of dollars; figures for 37 States east of
the Rocky Mountains, as reported by the F. W. Dodge Corporation]
1933
Federal reserve district
1932
1933
Jan.
Federal reserve district
Boston
New York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Pallas
Total (11 districts)
Jan.
Dec.
4,696
23, 731
6,084
4,074
4,735
14, 325
8,214
5,061
1,464
4,165
6,807
5,643
19,496
5,984
5,108
12, 585
6,348
9,298
4,887
1,745
4,705
5,422
83,356
7,175
24,803
8,400
5,615
5,711
12,628
4,905
1,371
4,059
3,205
Boston..
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco.
Total...
Boston
New York....
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco.
Total...
1933
Jan.
Dec.
289
691
172
251
187
176
426
121
100
114
219
590
156
197
148
114
390
114
74
145
75
247
Jan
Jan.
1,990
17,371
1,373
4,241
2,638
895
1,314
649
742
841
1,132
6,359
168
30,061
22,031
9,544
BANK DEBITS
Number
of
centers
1932
Dec.
308 6,560 4,675
827 23, 671 16, 609
215 3,816 4,599
322 5,951 8,239
159 3,056 2,742
188 5,372 1,749
495 19,179 13,078
158 1,864 1,834
74 1,207
945
157 1,842 2,326
178 1,693 1,644
377 4,889 5,749
2,919 2,469 3,458
20
977
5,784
907
992
1,321
1,834
1,000
244
2,369
360
1,029
5,213
[Debits to individual accounts. In millions of dollars]
Liabilities
1932
Jan.
739
5,344
960
2,087
1,286
655
813
267
155
591
668
16,497
84, 798
81, 219
[Amounts in thousands of dollars; figures reported by R. G. Dun Co.]
Federal reserve district 1933
Dec.
Jan
COMMERCIAL FAILURES, BY DISTRICTS
Number
1932
Number
of cities
79,101 64,189
New York City
Outside New York City
Federal reserve district:
Boston
21, 799
New York
12, 201
Philadelphia
9,628
Cleveland
2,404
Richmond
5,608
Atlanta
18,700
Chicago
3,918
St. Louis
671
Minneapolis
5,692
Kansas City
4,052
Dallas.
6,119
San Francisco-_
Jan
96,860
Total..
1
140
141
1933
1932
Jan.
Jan.
Dec.
12,413
12,053
13, 967
12,820
17,676
15,893
1,368
12,965
1,201
1,204
470
597
2,859
674
349
676
375
1,727
1,439
14,502
1,327
1,274
512
636
2,979
657
412
705
434
1,910
1,812
18,380
1,472
1,723
593
782
3,941
819
456
840
484
2,267
24,466
26, 787
33, 569
FEDERAL RESERVE DISTRICTS
#
r^»*
N.DAK.
*fefen 4
3
\
MINN.
®AHO
/MICH.,
S.DAK.
7J
^
IOWA
^•Oma.4
f
i.
i
!
Hi
j
—'—*
|
- \ _
8^
OKLA.
Oklahoma City
ARK.
LitUe^
DALLAS®
TEXAS
—
— —
®
•
BOUNDARIES OF FEDERAL RESERVE DISTRICTS
BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES
FEDERAL RESERVE BANK CITIES
FEDERAL RESERVE BRANCH CITIES
ILL.
tND.
7
KANSAS CrTYfe
KANS.
i j MOsT.Loyis
N.MCX.
VA-3
rwiTAG
M.*
@FedFRASER