Full text of Federal Reserve Bulletin : March 1946
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FEDERAL ESERVE BULLETIN MARCH 1946 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM EDITORIAL COMMITTEE ELLIOTT THURSTON WOODLIEF THOMAS CARL E. PARRY The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This committee is responsible for interpretations and opinions expressed, except in official statements and signed articles. CONTENTS PAGE Review of the Month—Recent Economic Developments. The Foreign Loan Policy of the United States. . The British Loan, by Marriner S. Eccles. Report of Board on Pending Legislation on Housing. Financing War Production and Contract Terminations Under Regulation V Distinguished Service in War Finance. 219-226 227-231 232-235 236-239 240-248 248 Law Department: Consumer Credit—Suspension of License and Consent Injunction. . 249-251 Suit regarding Removal of Bank Directors. 251-252 Foreign Funds Control: Treasury Regulations. 252 Treasury Department Releases 252-254 Current Events .. .. 255-256 Foreign Banking Laws and Reports—Monetary and Banking Reform in Guatemala. 257-288 National Summary of Business Conditions. .... 289-290 Financial, Industrial, Commercial Statistics, U. S. (See p. 291 for list of tables). 291-339 International Financial Statistics (See p. 340 for list of tables) . 340-357 Board of Governors and Staff; Open Market Committee and Staff; Federal Advisory Council . 358 Senior Officers of Federal Reserve Banks; Managing Officers of Branches. 359 Map of Federal Reserve Districts. 360 Federal Reserve Publications (See inside of bac\ cover) Subscription Price of Bulletin A copy of the Federal Reserve BULLETIN is sent to each member bank without charge. The subscription price in the United States and its possessions, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Newfoundland (including Labrador), Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela, is $2.00 per annum, or 20 cents per copy; elsewhere, $2.60 per annum or 25 cents per copy. Group subscriptions in the United States for 10 or more copies to one address, 15 cents per copy per month, or $1.50 for 12 months. FEDERAL RESERVE BULLETIN March 1946 VOLUME 32 NUMBER 3 RECENT ECONOMIC DEVELOPMENTS Since last autumn activity in many sectors of the economy has been expanding and incomes in the aggregate have been largely maintained, notwithstanding strikes in important manufacturing industries. Increases in activity have been substantial in the construction, distribution, and service industries, and agricultural production has continued at a high level. A marked decline in output of manufactures, owing mainly to strikes in the steel, automobile, and electrical machinery industries, has been offset in part by an increase in output of minerals. Total industrial production in January, as measured by the 1935-39 average as compared with 168 in November; and in February is estimated at around 155. In March industrial production may advance above the November level, reflecting the end of major work stoppages and also continued increases in output of building materials, most nondurable goods, and minerals. Production in the whole economy, including agricultural as well as nonagricultural types of activity, is now above the level of any previous peacetime period and substantially above the average for the years 1935 to 1939. Employment in all major lines of activity except agriculture, mining, and conINDUSTRIAL PRODUCTION struction is above the advanced 1941 level. 260 Unemployment was around 2.7 million in February, which is considerably less than the 1941 average of 5 million and the 1939 average of 9 million. Output of most goods and services is close to the capacity of the country's resources under present conditions. While there will be increases in capacity as additional veterans enter the labor market, as the organization of the work improves, and as the flow of materials and finished 1942 1944 1946 1940 1942 1944 1946 products assumes more normal relationships, these developments take time. The process Federal Reserve index. Groups are expressed in terms of points in the total index. Monthly figures, latest shown are of expansion would not be facilitated and preliminary estimates for February. might be delayed by a general advance in Board's index and shown in the accompany- the level of prices although selective price ing chart, was reduced to 159 per cent of the adjustments will be required. PER CENT ,L VOLUME SEASONALLY ADJUSTED, 1 9 3 5 - 3 9 - 1 0 0 FOR TOTAL MARCH 1946 219 REVIEW OF THE MONTH MARKET PRESSURE AND THE NEW WAGEPRICE POLICY The upward pressure on prices has continued in recent months as demands for peacetime products quite generally have been in excess of the productive capacity of the economy in the reconversion period. Current incomes have been more than double those of the 1935-39 period, and buyers have had at their disposal a large volume of liquid assets acquired during the war period. Heavy buying has reflected deferred demands and forward purchasing as well as buying to meet current requirements. Consumers have been attempting to replenish their stocks of goods, and producers and distributors have been seeking to rebuild their inventories of peacetime products. Producers, also, have been adding considerably to their plant and equipment. To some extent this buying has been of a protective nature. Business purchasers have sought to protect their sources of supply and also to protect themselves against further increases in prices. Especially in the case of manufactured products, the Government has found it necessary to permit advances in price ceilings to cover higher costs and to encourage output of particular products. With unemployment continuing at-a low level and union organizations strengthened during wartime, labor has been in a strong bargaining position. Business, too, has found that the markets for most of its products were unlimited in this period and, with profits generally at a high level, has frequently offered increases in wage rates of from 10 to 15 per cent. Prolonged negotiations over larger increases in wage rates occurred, however, in a number of industries. Disputes in some leading industries were settled after the announcement of a new Federal wage-price policy in the middle of February. This announcement indicated that certain wage controls would be re-established 220 and that price ceilings would be advanced quickly, without the six months' test period of operations, whenever necessary to avoid hardship as a result of approved increases in wages and salaries. The Executive Order providing for the reestablishment of Federal wage and salary controls permits increases in wage rates consistent with the general advances that had occurred in related industries or labor market areas between August 18, 1945 and February 14, 1946; increases necessary to eliminate inequities and substandard conditions; and increases necessary to adjust for the rise in the cost of living from January 1941 to September 1945, which has been officially announced as being 33 per cent. Accompanying the settlement of the steel wage issue, which provided for an increase of lSl/2 cents per hour, ceiling prices for finished steel were raised by an average amount of 8 per cent. Federal announcements emphasized, however, that the granting of price increases for steel should not be interpreted to indicate that a general advance in commodity prices would be permitted. In announcing the new wage-price policy the President requested the Congress to act promptly in extending the economic stabilization statutes without amendment and in continuing the subsidy program for a full year after June 30. The President also requested that price controls over new and existing housing be enacted to restrain the present speculation in the real estate market, which he described as one of the most dangerous aspects of the present situation and one which works particular hardship on returning veterans and their families. CIVILIAN INCOMES AND EXPENDITURES ADVANCE While wage-rate disputes reduced pay rolls considerably in the metal manufacturing inFEDERAL RESERVE BULLETIN REVIEW OF THE MONTH dustries in January and February, wage and first two months of this year payments were salary payments in other manufacturing in- reduced somewhat, but may be expected to dustries continued to rise as a result of a fur- increase in March to a rate of close to 160 bilther expansion in employment and of in- lion dollars. This rate would be about the creases in wage rates. Wages and salaries same as the average level prevailing during in the construction, mining, distributive, fin- 1945 and somewhat above the average for the ance and service industries also continued to first quarter of 1946 shown on the accomincrease, after allowance for seasonal changes, panying chart. With a lower level of perreflecting chiefly gains in employment. In 1NDIVIDUAL INCOMES, EXPENDITURES, AND TAXES March, following the settlement of major industrial disputes at sharply increased rates of pay, total private wage and salary payments are likely to rise to a level substantially above the annual rate of 75 billion dollars last September and close to the 82 billion rate of last July. Net incomes of agricultural proprietors were reduced somewhat after the end of the war as a result of declines in prices of farm products, but since September have increased as prices of farm products have advanced above wartime peaks. At the same time net incomes of unincorporated business enterprises have increased, accompanying a large expansion in retail trade and service activities. These gains in entrepreneurial incomes, and the gains in private wages and salaries, have been offset to some extent by reductions in incomes received by Federal workers at shipyards and arsenals and in war agencies. Total incomes received by the civilian population, however, have probably increased by about 10 per cent since last September. This increase has more than offset the sharp decline in Federal payments to the armed forces whose strength has been reduced from 12 million persons to about 5 million in the middle of March. Total income payments, which were at an annual rate of 154 billion dollars in September, advanced to a level of around 158 billion in November and December. During the MARCH 1946 1944 1945 Department of Commerce data with quarterly figures since 1943 partly estimated by Federal Reserve. Figures for first quarter of 1946 are preliminary estimates. Amounts indicated as "Savings" represent excess of individual incomes over consumer expenditures and taxes. sonal taxes effective in 1946, current incomes available for spending or saving are close to the wartime peak. Individuals apparently have reduced their rate of savings out of current income in order to increase considerably their purchases of almost all classes of goods. The largest gains in purchases have occurred for those types of products which had been at relatively reduced levels during the war, like metal products, gasoline, tires, men's clothing, leather shoes, and meats. Sales of men's clothing at department stores in the fourth quarter of 1945 were 30 per cent above the same period in 1944 and dollar sales of household ap221 REVIEW OF THE MONTH supplies of most foods continue to fall short of the high level of consumer demand and prices of practically all foods are at ceiling levels. Price ceilings, moreover, have been advanced in recent months by about 10 per cent for butter, cheese, and sugar, and only the continued use of Federal subsidy payments has prevented further price increases for a number of food products. The expansion indicated this year in civilian food supplies is the result solely of a reduction in military needs, since food production is likely to be somewhat less than in 1945 if average crop yields prevail. Military requirements are expected to drop from 14 per cent of the total food available in 1945 to 3 per cent in 1946. Exports for relief purposes will be somewhat larger than last year but will account for only a small proportion of the Nation's total food supply. Current market supplies of wheat are short, and since the carry-over on July 1, 1946 may be only about 150 million bushels, supplies are likely to continue short unless there is a bumper crop. Livestock feed supplies are limited also and an unfavorable crop year for wheat and feed grains would have a serious effect on livestock production. January 1 stocks of feed were somewhat below the same date last year and, with the FOOD SUPPLY SITUATION amounts being fed larger than last year, the Food supplies available for civilian con- carry-over at the end of this season will be sumption in the United States are likely to quite small. The Secretary of Agriculture has recently be larger in 1946 than last year and, on a per capita basis, may exceed those of any asked for increases in agricultural production previous year, according to Department of above earlier goals and for certain changes Agriculture estimates. This situation is in in price policies in view of the high level of sharp contrast to conditions in the rest of domestic demand, the increase of export the world where 1946 food supplies will needs above previous forecasts, and the debe considerably below prewar levels with velopment of inadequate feed supplies. In February the Government was not able to famine conditions existing in some areas. Notwithstanding the relatively ample deliver sufficient wheat to meet its export proquantities that are available in this country, gram for critical foreign relief needs. A Fed- pliances increased 245 per cent in the same period from the greatly reduced wartime volume. In the first two months of 1946 total sales at department stores were 17 per cent above a year ago, with a larger increase in February than in January. Sales in February, after allowance for seasonal influences, were the largest on record by a considerable margin. Supplies of most consumer goods continue to be short of demand and not all of the increase shown for expenditures reflects an expansion in physical volume. Average prices of food, clothing, housefurnishings, fuels, and miscellaneous goods and services have continued to advance in recent months. Even if incomes should not rise above current levels, price pressures are likely to be great in coming months until the present large and expanding volume of production provides ample supplies to meet accumulated demands as well as current demands. These inflationary pressures apply to materials as well as finished products and to producer's goods as well as consumer's goods. They are, moreover, not limited to the markets for newly produced goods; thev are also important in the markets for existing assets like houses and nonresidential properties. 222 FEDERAL RESERVE BULLETIN REVIEW OF THE MONTH eral program to economize on the use of wheat in flour production has been announced and restrictions have been issued on the use of grains in the production of alcoholic beverages. Measures have also been taken to conserve feed supplies. period in 1945. The sharp expansion in these fields accounts for most of the large rise since last spring shown for private nonresidential construction in the accompanying chart. Awards.and expenditures for other private VALUE OF CONSTRUCTION ACTIVITY MILLIONS OF DOLLARS RECENT EXPANSION IN CONSTRUCTION ACTIVITY Since last spring private construction activity, which had been drastically limited during the war, has expanded more sharply than any other major type of economic activity. Accumulated and current demands, however, are so far in excess of the new facilities which can readily be made available that strong inflationary pressures have developed in housing and real estate markets generally. After the end of the war in Europe, Federal restrictions on construction were modified to permit the building of new industrial facilities and the alteration of existing plants needed in industrial reconversion. Soon after V-J day restrictions on the construction of commercial and industrial buildings were dropped, and in the middle of October all remaining restrictions on construction were removed. Private contract awards for new factory building have shown large gains during the past year, and since last autumn these awards have far surpassed the previous peak levels reached in 1937 and 1928. Contracts for new stores, garages, warehouses, and other commercial buildings have also shown exceptionally large increases during the past year, according to the F. W. Dodge Corporation. Total expenditures on both commercial and industrial building have been estimated to be at a level of about 182 million dollars per month in January and February as compared with 42 million in the same MARCH 1946 1940 1942 1944 1946 1940 1942 1944 1946 Figures beginning in 1944 are joint estimates of the Department of Commerce and the Department of Labor; earlier figures are estimates of the Department of Commerce. Estimates do not include repair and maintenance work. Monthly averages of quarterly data prior to July 1944; monthly data, thereafter. Latest figures shown are for February. nonresidential construction—mainly by the railroads and utilities—have not increased much above wartime levels. After the middle of October, when all restrictions on building were dropped, awards for private residential building rose sharply, and in the first two months of this year expenditures were seven times as large as a year ago. Most of the gain has been in the construction of houses for sale or rent, and awards for houses for owner-occupancy, although much higher than during the war, have been proportionately less important than before the war. Expenditures on construction of new houses are now at about the levels reached at this season in the years 1939 to 1941, as is shown in the chart. In terms of the number of new dwelling units being built the comparison with the prewar level is less favorable, because construction costs have increased sharply over prewar levels. Indexes 223 REVIEW OF THE MONTH of the cost of building a standard house, compiled by the Federal Home Loan Bank Administration, show advances since 1940 of over 50 per cent for several large cities and less marked increases in other reporting cities, with an average rise of one-third. In recent months the number of privatelyfinanced dwelling units started in nonfarm areas has been running at an annual rate of 420,000. While this is about four times as large as in the same period a year ago, it is considerably below the average of 536,000 units erected during the years 1939 to 1941. In addition, during that period an average of about 75,000 publicly-financed units per year was erected as compared with almost none at the present time. Since autumn publicly-financed construction, nonresidential as well as residential, has been at the lowest level since 1933. During the war years Federal military and naval installations accounted for a large part of public and total construction expenditures. Federally-financed industrial plant construction for war purposes was also on a large scale; including equipment, it amounted to 17 billion dollars. The Surplus Property Administration estimates that 1,540 plants which cost about 11.2 billion dollars will eventually be declared surplus. At the end of 1945, plants costing 2.6 billion dollars had been declared surplus, and of these, plants costing 203 million had been either sold or leased for private operation. Availability of the plants still to be disposed of may reduce the demand for the construction of new factories in the postwar period. PROPOSED N E W HOUSING PROGRAM In view of the widespread shortage of suitable housing, especially for veterans' families, a new Federal housing program has been developed, and in February recommendations 224 were made to Congress for legislation. The proposals are designed to encourage the building of 2,500,000 new dwelling units during the next two years and to make available 200,000 temporary units by re-use of Government-owned temporary war housing. This housing, which would be held for veterans, would be financed with private funds and most of the houses would be built to sell for not more than $6,000 or to rent for not more than $50 per month. Of the 1,000,000 new units which would be started this year, 250,000 would be prefabricated, or made largely from prefabricated parts, 50,000 would be trailers, and 700,000 would be of conventional construction, though using some new materials and techniques. Of the 1,500,000 new units scheduled to be started next year, 600,000 would be prefabricated and the remainder would be of conventional construction. Plans for expanding the output of building materials are an important part of the proposed program. These plans call for increasing output of conventional materials in existing plants; converting unused war plants to the production of both conventional building materials and new materials; and building new manufacturing capacity where necessary. This expansion would be accomplished by the use of Federal premium payments to producers of building materials, Government purchase contracts for prefabricated units and new materials, accelerated amortization of new plant for tax purposes, and Government credit extensions to producers of materials. In addition the plans call for the granting of wage-price adjustments or price increases where they are necessary and not inflationary. Production of prefabricated houses would be encouraged, where necessary, by Federal contracts to purchase from qualified prefabricators a specific number of units at a FEDERAL RESERVE BULLETIN REVIEW OF THE MONTH specified price. The Government would take delivery, however, of only those units which were not sold through ordinary channels within a reasonable period. Any units thus acquired would be disposed of as surplus property. To accomplish this two-year program the Congress has been requested to appropriate 250 million dollars to finance the re-use of temporary war housing, 400 million for premium payments to producers of conventional materials, and 200 million to encourage the production of new materials. The Congress has also been requested to make available Federal funds to stimulate private research in new construction methods and materials. No estimates are given of the costs which would be incurred in the purchase of prefabricated houses, of the amount of new plant.for which rapid amortization would be approved, or of the amount of loans which might be.extended to producers. The program also calls for legislative action on several other points. Authority is asked for the Federal Housing Administration to insure builders' mortgages for as much as 90 per cent of the necessary current cost of low-priced houses for both sale and rent; this is substantially the same as the wartime program of mortgage-insurance but differs from the ordinary peacetime program in that the latter permits the insurance of builders' mortgages for not more than 80 per cent of the appraised value of the property. It is also requested that Federal authority for control of the distribution of all building materials be extended to December 31, 1947. New legislation on two points is asked for: enactment of the Wagner-Ellender-Taft Bill which contains a comprehensive peacetime housing program; and enactment of a bill to permit control of the prices of new and old houses and of building MARCH 1946 sites. On existing houses the proposal made is that while no restriction would be placed on the price at which a first sale could be made after adoption of the proposal, subsequent sales could not be at a higher price than the first sale. In the statement of the program it is estimated that about 1,500,000 workers, including those required at the site and in producing and distributing industries, would need to be recruited and trained. The number now so engaged is estimated at about 650,000. The statement also indicates that it might be necessary for the Federal Government to aid in the provision of improved sites in some cases. PRICE PROBLEMS IN CONSTRUCTION AND REAL ESTATE Demands are urgent not only for residential facilities but also for additional manufacturing and commercial space, schools, hospitals, public utility expansions, and public improvements. Many factors contribute to the strength of these demands, including the curtailment of building during the war, which prevented provision being made for increases and shifts in population, and the current high level of incomes of consumers and business units compared with prewar. Repair, maintenance and alteration of many kinds of structures were also neglected during the war. In spite of the encouragement proposed for the production of building materials and the recruitment of labor, the new housing program is so large that, if it is to be successfully carried out, materials and labor will probably prove inadequate to meet nonresidential construction demands. Federal measures to curtail construction of medium and high-priced houses and many types of nonresidential construction may be necessary; already it has been announced that Federal construction projects which compete 225 REVIEW OF THE MONTH with veterans' housing for labor and materials will be delayed. The pressure of demand for space and facilities will make it both more necessary and more difficult to control prices and costs. Production of many building materials and components, such as lumber, brick, hardware, and plumbing and heating equipment was reduced considerably during the war period, and prices of most of these items have increased appreciably above prewar levels; the sharpest increases have taken place in lumber prices which are up 70 per cent or more at wholesale. As a result of higher material and wage costs and other factors there has been a substantial rise in the cost of construction. It appears that efficiency of operations has declined and also that builders' margins have increased, partly as protection against contingencies, but basically because of the strong demand for construction. In the proposed housing program, as has been mentioned, provision is made for continuing price controls on materials, for .226 stimulating the production of materials by means of Government financial aid, and for allocating materials for approved construction. Authority is also being requested for control of the prices of new houses and of existing houses. The orderly expansion of construction and the attainment of a high, stable volume in the next few years depend in large measure on the stabilization of costs and prices at reasonable levels, as well as on the maintenance of incomes generally. In the present situation this objective is difficult to achieve. The demand for space and facilities is exceptionally strong and materials and labor are in short supply. Only as these conditions change or as controls operate effectively can it be expected that costs of construction or real property values will stop advancing. Avoidance of any further broad advance in prices in the construction field is important to the success of the general program for preventing inflationary price advances in the economy as a whole. FEDERAL RESERVE BULLETIN THE FOREIGN LOAN POLICY OF THE UNITED STATES* 1. The foreign loan program of the United States, by assisting in the restoration of the productive capacities of war-devastated countries and by facilitating the sound economic development of other areas, is directed towards the creation of an international economic environment permitting a large volume of trade among all nations. This program is predicated on the view that a productive and peaceful world must be free from warring economic blocs and from barriers which obstruct the free flow of international trade and productive capital. Only by the re-establishment of high levels of production and trade the world over can the United States be assured in future years of a sustained level of exports appropriate to the maintenance of high levels of domestic production and employment. By far the greatest part of the program of reconstruction is being carried out with the resources of the war-devastated countries. UNRRA takes care only of those immediate relief needs which cannot be met out of the resources of the countries involved. Another part of this program is being carried out through sales of surplus property, such sales being made on credit terms or for local foreign currencies where sales for cash payment in United States dollars can not be made. The rest of the job must be handled on a loan basis. 2. The International Bank will be the principal agency to make foreign loans for reconstruction and development which private capital can not furnish on reasonable terms. It provides a means by which the risks as well as the benefits from international lending will be shared by all of its members. It is expected that the International Bank will begin lending operations in the latter half of 1946 and that during the calendar year 1947 the International Bank will assume the primary responsibility for meeting the world's international capital requirements that can not be met by private investors on their own account and risk. With its present membership, the International Bank will be authorized to lend approximately 7.5 billion dollars. The bulk of the funds for the loans made through the International Bank will be raised in * This statement was formulated by the National Advisory Council on International Monetary and Financial Problems and presented to the President. On March 1, 1946, the President endorsed the recommendations of the Council and submitted the report to Congress for its information and consideration. MARCH 1946 the private capital markets of member countries, particularly in the United States. However, since this new institution will take time to develop a lending program, it will probably not be in a position to enter into more than a small volume of commitments this year. 3. The proposed loan to Britain requiring congressional authorization is a special case, but one which is an integral part of the foreign economic program of this Government. No other country has the same crucial position in world trade as England. Because of 'the wide use of the pound sterling in world trade, the large proportion of the world's trade which is carried on by the countries of the British Empire, and the extreme dependence of England upon imports, the financial and commercial practices of Britain are of utmost significance in determining what kind of world economy we shall have. The early realization of the full objectives of the Bretton Woods' program, including the elimination of exchange restrictions and other barriers to world trade and investment, requires an immediate solution to Britain's financial problem. The International Monetary Fund Agreement permits the continued imposition of certain of these restrictions for as much as five years; in the Financial Agreement of December 6, 1945, the British agree to their removal within one year from the effective date of that agreement. It is the view of the Council that the British case is unique and will not be a precedent for a loan to any other country. 4. In July 1945, the Congress, for the purpose of making loans to war-devastated areas during the period prior to the inauguration of the International Bank and for the promotion of American exports and other special purposes, increased the lending power of the Export-Import Bank by 2.8 billion dollars, making its total lending power 3.5 billion. At the end of 1945, the Export-Import Bank had outstanding commitments, including money authorized for cotton loans, of 1,560 million dollars of which 1,040 million was committed in the last half of 1945. The 1,040 million dollars of the commitments made during the last half of 1945 consisted of: (a) 655 million dollars for the purchase of goods which originally had been included 227 THE FOREIGN LOAN POLICY OF THE UNITED STATES in the lend-lease programs to Belgium, Netherlands, and France; (b) 165 million dollars for the purchase of other goods and services necessary for the reconstruction of Belgium, Denmark, Netherlands, and Norway; (c) 100 million dollars available to various European countries including Finland, Belgium, Czechoslovakia, France, Italy, Netherlands, and Poland for the purchase of raw cotton, and (d) 120 million dollars for specific export and development programs, mostly to Latin American countries. On January 1, 1946, the Export-Import Bank had unused lending power of 1.9 billion dollars for making additional commitments. In addition to the 1.9 billion dollars, there will be available during the fiscal year 1947 about 50 million from repayment of principal and an additional sum (possibly 100 million) from the cancellation of earlier commitments. 5. Pending the effective operation of the International Bank, it has been the policy of this Government to limit loans through the Export-Import Bank for reconstruction and development to the immediate, minimum needs of the borrower. Among the factors taken into consideration in making loans of this character are: (1) the urgency of the need of the borrower; (2) the borrower's own resources; (3) the possibility of obtaining the loan from other sources: private capital markets and other governments; (4) the ability of the borrower to make effective use of the funds; (5) the capacity of the borrower to repay; and (6) the impact of the loan on our domestic economy. 6. It is the view of the Council that, pending the establishment and operation of the International Bank, this Government can meet only a small proportion of the undoubtedly large needs of foreign countries for credits for reconstruction and development. After careful consideration of all factors, the Council has concluded that the most urgent foreign needs will involve negotiations for loan commitments by the Export-Import Bank of approximately 3% billion dollars in the period from January 1946 through June 1947. This is exclusive of the proposed credit to Britain. 228 Since the available funds of the Export-Import Bank are about 2 billion dollars, it will be necessary in order to carry out this program to ask Congress to increase the lending authority of the Bank by 1% billion. Although this is a substantial increase, the Council believes that it is a minimum figure. It is only through careful screening that it will be possible to carry out the program within the limits of the additional funds which the Congress will be asked to make available to the Bank. It is the established policy of the United States Government carefully to scrutinize each loan application to determine that the need is urgent and that the funds can be obtained from no other source than the Export-Import Bank. 7. On balance the loan program will be beneficial to our domestic economy. In the transition from war to peace, expanded foreign trade will not only assist the reconstruction of foreign countries, but also ease the reconversion problem of a number of domestic industries. During the war many of our important industries, particularly in the field of capital goods, were built up to capacities far in excess of any foreseeable peacetime domestic demands. With the elimination of war demands, much of this American productive capacity may be unused. Such a situation has already arisen, for instance, with reference to railroad equipment, machine tools, power and transmission equipment, and certain types of general industrial machinery. This is also true for some of the metals, heavy chemicals, synthetic rubber, and other industrial materials. Similarly, we have quantities of cotton, tobacco and other agricultural products which are surplus to domestic needs. It is fortunate that this excess productive capacity is for many items which are most urgently needed by the war devastated countries. However, a part of the foreign demand will fall on products which are at present scarce in American markets. The Department of Commerce estimates that perhaps one-fourth of the proceeds of foreign loans will be spent on such products. In these cases the export demand, although small in relation to current domestic demand, contributes to inflationary pressures in the United States economy, and allocation and export controls must be maintained in order both to prevent any undue drain on domestic supplies and to assure that the FEDERAL RESERVE BULLETIN THE FOREIGN LOAN POLICY OF THE UNITED STATES minimum essential needs of other countries are met. In this connection, account must be taken not only of the fact that there is an inevitable delay in the spending of the loans but also that the Export-Import Bank discourages the employment of loan proceeds for the purchase of commodities in scarce supply. It is also the policy of the Government to prevent the proceeds of loans from being used to purchase goods in the United States market when similar supplies are for sale as surplus property. The figure of 3% billion dollars in requirements through the fiscal year 1947 represents anticipated commitments and not amounts which will be actually loaned or spent. For example, on January 1, 1946, the net outstanding loans of the Export-Import Bank amounted to only 252 million dollars although the total amount committed was 1.6 billion. In order to permit foreign governments to plan their import programs and to permit United States producers to schedule their production, loan commitments by the Export-Import Bank must be made well in advance of actual use of loan funds. In view of these considerations, it is believed that a foreign lending program adequate to meet the minimum needs of foreign countries will provide additional production and employment in many American industries, and that any temporary sacrifice involved in other areas of the economy will be small compared to the long-range advantages to the United States of a peaceful, active, and growing world economy. 8. A basic question to be considered is whether at a later period foreign countries will be able to service large American loans and investments. There is little doubt regarding the ability of debtor countries after their economies have been fully reconstructed to increase their national income sufficiently to handle the service charges on American loans and investments, providing an undue part of national income of borrowing countries is not diverted to military expenditures. This increase can be brought about through the modernization of economically backward areas, increased employment, and the utilization of new productive techniques, and well-directed foreign loans will make an important contribution to this development. The ability of borrowing countries to develop MARCH 1946 an export surplus sufficient to meet service charges on foreign loans will depend in large measure upon the level of world trade. A high level of world trade will in turn depend upon the maintenance of a high level of world income and a reduction of the barriers to international trade which have grown up in the past. A high level of world income, and of national income in the United States, will be greatly influenced by the domestic economic policies of the United States and of other major countries. It is expected that the proposed International Trade Organization will play an important role in securing the international economic environment necessary for the maintenance of high levels of world trade. The operation of the International Monetary Fund should assure the orderly functioning of a system of multilateral payments, and this will make it possible for debtor countries to convert their export surplus with any country into the currency in which their obligations must be discharged. 9. Fundamentally, however, the ability of foreign countries to transfer interest and amortization on foreign loans to the United States depends upon the extent to which we make dollars available to the world through imports of goods and services, including personal remittances and tourist expenditures, and through new investments abroad. As a last resort, the world outside of the United States has a current gold production of possibly 1 billion dollars per year to add to their present foreign exchange reserves, which can be dipped into to insure payment. As long as new American investment exceeds interest and amortization on outstanding foreign investment, the question of net repayment on our total foreign investment will not arise, although as individual investments are paid of? the composition of our foreign investment may shift. It is impossible to prophesy when receipts on foreign investment will exceed new investment, as American investment abroad will depend on many future developments. In a world of peace, prosperity, and a liberal trade policy, there may well be a revival and continuation of American private investment on a large scale, including a reinvestment of the profits of industry, that will put the period of net repayment far in the future. Such an increase of investment is a natural and wholesome development for a wealthy community. When net repayment begins, whether this be 229 THE FOREIGN LOAN POLICY OF THE UNITED STATES a few years or many decades from now, it will involve an excess of imports of goods and services (including foreign travel by Americans) over our total exports of goods and services. The growth of our population and the depletion of our natural resources and the increase in our standard of living will increase the need for imported products, and these developments together with the mainte- EXPORT-IMPORT BANK OF WASHINGTON LOANS AUTHORIZED BY EXPORT-IMPORT BANK SUBSEQUENT TO JUNE 30, 1945 [AS OF DECEMBER 31, 1945] Country and Obligor Latin America: Brazil Lloyd Brasileiro Chile Chilean State Railways (Baldwin Locomotive Works) Chilean State Railways (Electrical Export Corp.) Fomento Corporation Fomento Corporation Ecuador Republic of Ecuador Mexico United States of Mexico* Nacional Financiera* Fred Leighton Peru Cia. Peruana del Santa* (Westinghouse Electric Int'l. Co.) Date of Authorization 9/11/45 38.0 7/13/45 1.2 7/13/45 2.0 9/11/45 28.0 5.0 Purpose Purchase of Cargo Vessels Purchase of Locomotives Purchase of Electrical Equipment Purchase of Steel Mill Equipment Purchase of Electrical and Other Equipment 9/11/45 1.0 Purchase of Engineering Services 7/13/45 10.0 3/21/45 3/21/45 10/23/45 6/12/45 TOTAL LATIN AMERICA Europe: Belgium K i n g d o m of B e l g i u m . . Amount of Authorization (In Millions of Dollars) 20.0 .15 .35 Highway Construction, Equipment Services Purchase of Electrical Equipment Import of Mexican Handicraft and Purchase of Electrical Equipment 105.7 9/11/45 55 . 0 K i n g d o m of B e l g i u m . . . . 9/11/45 45 . 0 Denmark Kingdom of Denmark. . . 7/13/45 20 . 0 France Republic of France.... 9/11/45 550 . 0 Purchase of United States Goods and Services (Lend-Lease 3-c terms) 9/11/45 50 . 0 9/11/45 50 . 0 Purchase of United States Goods and Services (Lend-Lease 3-c terms) Purchase of United States Goods and Services 7/13/45 50.0 Purchase of Services Purchase of United States Goods and Services (Lend-Lease 3-c terms) Purchase of United States Goods and Services Purchase of Services United States Goods and Netherlands Kingdom of the Netherlands Kingdom of the Netherlands Norway Kingdom of Norway Various European Countries Various European Governments. . . 10/ 8/45 Goods and Purchase of Raw Cotton 4/12/45 , 5. 0 Purchase of Goods and Services 9/11/45 3 . 06 Purchase of Airport Equipment TOTAL ASIA Various Countries: Governments of Various Countries. (Int'l. Standard Electric Corp.) Special Exporter-Importer Credits... States 920. 0 TOTAL EUROPE Asia: Saudi Arabia Kingdom of Saudi Arabia* Turkey •Turkish State Airways (Westinghouse Elec. Int'l. Co.) 100. 0 United 8.06 9/11/45 5.0 Purchase of Communications Equipment 9/11/45 1.0 Various GRAND TOTAL Undisbursed commitments as of June 30, 1945 (adjusted for expirations and cancellations up to December 31, 1945) Outstanding loans as of June 30, 1945 (adjusted for repayments between June 30, 1945 and December 31, 1945) 1, 039. 76 TOTAL COMMITMENTS AS OF DEC. 31, 1945. 1,559.65 326.46 193.43 * Credits authorized before June 30, 1945, but not entered on the books of the Bank as commitments until after that date. 230 FEDERAL RESERVE BULLETIN THE FOREIGN LOAN POLICY OF THE UNITED STATES . nance of a high and stable level of employment will facilitate this adjustment. The annual interest and amortization payments on the entire present and contemplated Export-Import Bank program, the British Loan, and the International Bank loans floated in United States markets will be less than 1 billion dollars. The receipt of payments on our foreign loans in the form of goods and services is entirely consistent with increased exports from this country and rising production at home, and will contribute to a rising living standard in the United States in the same way that a private individual's earnings on his investments make possible an increase in his own living standard. 10. The loan policies stated here are in full accord with the basic political and economic interests of the United States. The National Advisory Council, which was established by the Congress in the Bretton _Woods Agreement Act and consists of the Secretary of the Treasury as Chairman, the Secretary of State, the Secretary of Commerce, the Chairman of the Board of Gov- MARCH 1946 ernors of the Federal Reserve System, and the Chairman of the Board of Directors of the ExportImport Bank, has the responsibility of coordinating the lending and credit programs of this Government, and of achieving maximum consistency between American Government lending and the lending operations of the International Bank. This country is supporting the United Nations Organization wholeheartedly, and the success of the United Nations Organization depends not only on political agreement but also on economic improvement. These loans are for economic reconstruction and development. They will enable the borrowing countries to increase their own production, relieve their foreign trade from excessive regulation, and expand their trade with us. Economic reconstruction will foster political stability, and political stability will foster peace. This program of foreign lending is essential to the realization of the main objective of the foreign economic policy of the United States, which is to lay the economic foundations of the peace. 231 THE BRITISH LOAN by MARRINER S. ECCLES Chairman of the Board of Governors of the Federal Reserve System* It is especially gratifying to me to have this opportunity today to speak to you on the proposed British loan, which is an integral part of the gravest problem with which the world is faced today—the problem of making certain this time that a lasting peace emerges from the ruins of a World War. It is particularly fitting that' you here in Philadelphia should give your most earnest attention to what is close to your deepest interests, your traditions, and the aspiration betokened by the name of this city for attainment of brotherly love. I take it that this aspiration is not bounded by the city limits or even by our national shore lines, but extends to all mankind. It is no overstatement, I think, to say that the decisions which must be made in shaping the peace profoundly affect all our destinies here as deeply as the decisions of the Founding Fathers who met here and so largely shaped the destiny of this Nation. The fame they rightly earned for their ability to think and act boldly has not been tarnished by any narrowness of vision or provincial outlook on the part of those who have come after them in this city. To an interested outsider, it has seemed that the high level of discussion and opinion in this environment has long been worthy of the past and gives added hope for the future. The President of the United States has placed before the Congress a set of proposals designed to establish our future economic and financial relationships with the British Empire. Their most notable feature is a large dollar loan to help the British to help themselves in surmounting the difficulties which face them as a result of the war. These proposals are the result of long and painstaking negotiations with representatives of the British Government in which I had the honor to participate. I was invited to come here today to tell you why I believe they represent a fair and honorable bargain; why they serve the interests of the United States; in fact, why they are an essential step on the road to world peace and prosperity, and, therefore, why they should be adopted. * An address delivered before the Foreign Policy Association, in Philadelphia, on Feb. 9, 1946. 232 We do not need to look twice at the war-torn world around us to realize what a tremendous job it will be to restore that world to peaceful and prosperous ways. We do not have to think twice about recent history and the two World Wars which have fallen on us within a generation to realize how vitally important this objective is to every one of us. The world can not be brought back to the paths of peace and economic welfare without strong, courageous leadership. Throughout the world this country is looked to for that leadership. This country has a plan for economic peace. It is to the everlasting credit of this Government that in the midst of the most devastating of all wars it nonetheless found energies to devote toward planning for the peace. We have given the world leadership by developing, in cooperation with our Allies, a positive program for economic recovery and reconstruction. We have taken two major steps toward laying the groundwork for a prosperous world economy. The first was the Bretton Woods financial proposals which were worked- out at an international conference summoned more than a year ago at the initiative of the United States. The second is the proposals on international trade and related matters which have been put forward by the United States as the basis for discussion in international conferences during the coming year. These two sets of proposals, one in the financial and one in the trade sphere, complement each other. Both have a common objective: the development of "rules of the game" for international economic affairs. The Bretton Woods Monetary Fund aims at the abandonment of artificial exchange restrictions and creates machinery for dealing with international exchange rates. The United States' proposals on commercial policy seek to eliminate unfair trade practices and other barriers to international commerce. What are the prospects for getting the kind of an economic world envisioned in these proposals? The outlook is indeed black unless we in the United States are prepared to do more than preach FEDERAL RESERVE BULLETIN THE BRITISH LOAN about world peace and prosperity. We must be willing to back up our preachments with practical, cooperative proposals such as the British loan and the ones I have just mentioned. We all know what a desperate state the world is in today. Great areas in Europe and the Far East have been left prostrate by the war. Masses of people in the world are hungry, not just for food (and for every other kind of goods), but also for employment and for social and economic peace. Bread, work, and peace! Enlightened leadership must provide these essentials of a decent life through reasonable and humane international arrangements, or desperate peoples will inevitably yield to the glib promises of ambitious revolutionists, losing their liberties in the hope of gaining economic security. We need an orderly economic recovery in the world for the sake of political stability and social order. Poverty breeds international rivalries and conflicts. In times like these, distressed nations are tempted to make full use of every bargaining power and weapon that can be brought to hand. Unless a positive program for regulating international economic relations is widely accepted, trading relations can easily degenerate into a ruthless struggle for existence. An undeclared state of economic warfare might rapidly develop among the world's leading nations and economic blocs. In such an atmosphere there would be no hope for the United Nations Organization in bringing about a lasting peace. In a very real sense, therefore, the Bretton Woods Agreements and the United States' proposals on commercial policy constitute treaties of economic peace. At the present time, however, many countries can not afford to adhere to these treaties unless they receive some external assistance. In particular this is true of countries that suffered most from the destruction of the war and have little or no capacity to earn foreign exchange through exports until they have been rehabilitated. Such countries must be given an opportunity to work their way out peacefully and avoid social and economic chaos. The only satisfactory way out is through long-term credits, and our country stands almost alone in the world in being able to grant these credits and thereby supply essential goods. Against these reasons for our extending aid to foreign countries we must weigh the pressures on our own domestic economy. We can not ignore the fact that such aid through Government channels necessitates an increase in public expenditures. MARCH 1946 However, this increase is, by its terms, selfliquidating. The foreign borrowers will in effect assume the burden of this increase in our expenditures by making interest and amortization payments on their loans. We must recognize also that the expenditure of the proceeds of the loans in this country can not be entirely welcomed at the present time. Many of these purchases will be made for products of which we will have an adequate, or even a surplus, supply, but inevitably other purchases will be for goods that are, for the time being at least, in short supply, and to that extent such purchases add to inflationary pressures. So we must face up to the alternatives. We must weigh the advantages to the United States of a contribution to world stability against the costs which such a contribution imposes on us at home. No American doubts that we ought to make some contribution in money and in goods to the relief and reconstruction of the shattered world. At one end of the scale we have UNRRA to which by common consent we are donating large amounts of money and goods in order to provide emergency relief for destitute peoples. We all recognize the necessity for this, despite the drain which the UNRRA procurement program may exert on some of our domestic markets. At the other end of the scale, there are all kinds of grandiose projects which foreign countries would like to undertake with assistance from this country, but which are beyond our ability to provide and would not be in our interest to undertake. In between, however, lies a range of loan propositions of varying degrees of urgency and importance. These must be examined case by case with a view to making a determination based on our ability and our national interest. This was my approach to the British problem in the recent negotiations. Our proposed action in the specific British case must be judged in the light of its importance to the success of our whole foreign economic policy. The British case is unique. More than any other country in the world Britain is dependent for her existence upon foreign trade. She is the world's largest importer and the pound sterling, after the dollar, is by far the most important currency in world trade. British trade and exchange practices, therefore, have an immense influence on all of the markets of the world. The construction of a liberal world trading system along the lines desired by the United States would be virtually impossible without British collaboration. To my mind, therefore, the basic justification for the loan is that it would 233 THE BRITISH LOAN make it possible for Britain to join with us in laying the foundation for economic peace. Now, let's look a little closer at the British case to see why Britain needs the proposed sum of $3,750,000,000 to carry her through the postwar period. She was getting along before the war. Living on her capital a little, perhaps, but a country with very great resources measured by peacetime standards. However, Britain has just emerged from six years of life-and-death struggle in which she has been forced to make tremendous human and material sacrifices. As a result, she faces enormously difficult problems. The war has gravely crippled Britain's means of international trade on which her livelihood depends. The British Isles are a great workshop which must import large quantities of food and raw materials merely to exist. Before the war the British paid for these imports partly through exports, partly through the provision of shipping and other services to the world, and partly by drawing income from large foreign investments built up through centuries of effort by the British people. Today the import requirements persist despite the austere level of British living standards. But what has happened to Britain's capacity to pay? In the first place, her export trade is almost gone and must largely be rebuilt. -Why? Primarily because Britain has concentrated her energies so fully on the war. Production for war was given priority over production for export, except where exports served to bolster the war eflort of Allied countries. We were partners in this conversion of the. British workshop to war purposes. We made large supplies available to Britain on Lend-Lease. We, of course, did not insist on repayment in British goods at the expense of her war production. But when the flow of Lend-Lease supplies was abruptly terminated at the end of the war, this fruitful partnership was dissolved. The main burden of provisioning the British Isles had to be taken over by British exports, which were reduced in 1944 to only 30 per cent of the prewar level. This burden is manageable in time, but it may be three or four years before Britain can sufficiently restore her export trade to enable her again to he self-supporting. Britain will also resume her place in time as a great provider of shipping, insurance, and banking services to the world. But these activities, too, have been shattered by the war. British shipping in particular suffered tremendous war losses. 234 The war brought about a radical change in Britain's international investment position. Once the largest creditor country in the world, she has been reduced to a net debtor through her prosecution of the war. In order to pay for imports and for her large military expenditures abroad, she has liquidated nearly 5 billion dollars worth of foreign assets since 1939 and has incurred foreign debts of more than 12 billion dollars. Quite naturally, the British have argued that they deserve our assistance in digging out of their difficulties as much as in fighting the war itself. They were hopeful that we would help them through the postwar transition period on something like Lend-Lease terms—that we would view the help as part of our share in the cost of the common victory over the enemy and in constructing the peace. We on the U. S. side have agreed to deal on this basis in settling for Lend-Lease supplies consumed in the prosecution of the war. But postwar assistance, we have felt, should be extended on a self-liquidating basis. We were impressed by Britain's sacrifice, but we felt that the provision of new money had to be based on future rather than past considerations and, therefore could not be a gift but must be a loan, to be repaid over a period of years and bearing interest at a rate sufficient to cover approximately the cost of the money to the United States Treasury. The American attitude was summed up by Lord Keynes in the speech which he delivered in the House of Lords last December. "We soon discovered," he told his countrymen, "that it was not our past performance or our present weakness, but our future prospects of recovery and our intention to face the world boldly that we had to demonstrate. Our American friends were interested not in our wounds though incurred in the common cause, but in our convalescence. To help that forward interests them much more than to comfort a war victim. When this basic question of a loan was decided upon, and when agreement was reached on firm commitments by the British with regard to their trade and exchange policies, the final step was to determine how large a loan was necessary to do the job. How much foreign exchange would the British need to meet urgent expenditures during the period when they were getting back on their feet? How much would they need to pay foreign countries supplying the British market in sterling fully convertible into dollars and other currencies FEDERAL RESERVE BULLETIN THE BRITISH LOAN rather than in frozen funds? How much of this foreign exchange could they still draw from their own resources? How much of the load could be carried by other countries (Canada, for example), and what amount needed to be raised in the United States if the job was to be done? All these factors were closely examined. This figure of $3,750,000,000 was not picked out of the air. It represents the careful judgment of our negotiators as to the minimum amount the British need from us to work their way out of the present situation, while at the same time they continue to subject themselves to an austere standard of living at home. The proposed loan amounts to what we spent in only two weeks of fighting a war of death and destruction. In contrast, it seems little enough to loan in the interest of peace. Moreover, this loan is to meet Britain's minimum import needs and not to pay off her other creditors. As I mentioned before, as a result of her war purchases abroad, Britain owes some 12 billion dollars. About half of this is owed to India and countries of the Middle East where the British had to finance heavy military expenditures during the war. She plans to negotiate settlements on these debts involving cancellation of part and repayment of the rest over a long period of years. Our loan agreement with Britain provides that she must settle these debts out of resources other than our line of credit. If we make the loan, what of its future? Can the British repay it? Can Britain and other foreign countries which share in our emergency postwar lending program live up to their obligations ? The answer is that they can repay if world trade is restored to a healthy basis and if we in this country take the lead in maintaining a high level of production and employment. They can't repay if the world breaks up in warring economic blocs or falls into another severe world depression. The essence of these loans is to create the conditions under which they can be repaid. Loans, however, are not enough. The restoration of a healthy world trade also depends on whether we in this country learn how to administer our international economic affairs. There is an old, but often forgotten, axiom—that we can not forever export more than we import. This year—perhaps for several years—we face an emergency situation. During this period we must plan for large export MARCH 1946 surpluses in order to assist the world in recovering from the wreckage of war. But let's not lose sight of the reasons which justify this action. Above all, let's not make the mistake of thinking that lending money to finance exports is the way to take care of unemployment when it develops. We shall deceive ourselves if we imagine that we can continuously sell abroad more than we buy. By accepting gold (of which we already have an abundance) or promises to pay, we can, of course, delude ourselves for a time into thinking that our foreign trade is on a solid and lasting basis. We get employment, yes, while the money is being spent, but <the fruits of that employment are lost to us permanently if we persist in refusing to take goods and services from foreign countries to enable them to service and repay their debts. If we desire to maintain a thriving export business and receive service on our investments abroad, we must make the exchange of goods and services a two-way street. In the end, responsibility for making it possible for our debtors to pay is ours, and ours alone. We should never forget that this country does not have unlimited natural resources. We have been exploiting our mines, our forests, our oil reserves, at a rapid rate. It is bad enough if we squander these resources in supporting ourselves at home. It is much worse if we dissipate them by pushing them out in exports and fail to provide for repayment. As we look for ways to restore our balance of international trade, we should devote special attention to the possibility of replenishing our reserves of scarce or irreplaceable raw materials by drawing upon the resources of the outside world. There are some, as you know, who will let past grievances blind them to all reasons for granting this help to the British people—who remember only the worst and forget what the finest British character has contributed through the centuries to the institutions of free men and the liberation of the human spirit—who even now forget how this ancient, hardy people so recently stood alone through the long, dark night, the only barrier between this country and the onrush of the Axis powers over peoples less resolute. The good sense of the American people will not let these dissenting voices prevail, if for no other reason than that our Nation can not afford, in its own long-run interest, to refuse the help. 235 REPORT OF BOARD ON PENDING LEGISLATION ON HOUSING DEAR SENATOR WAGNER: On behalf of the Board I am enclosing two statements with regard to S. 1592 now pending before your Committee. Because of the Federal Reserve System's responsibilities in the broad field of credit, we desired to set forth the reasons why we feel it would be desirable to reconsider certain provisions, particularly the proposal contained in the legislation to provide easier credit terms on new housing in the lowest price ranges. While the Board is in entire sympathy with the stated objectives of the bill and is in accord with many of its provisions, it is our judgment that its enactment without revision would add to already serious inflationary pressures. One of the enclosed statements deals with the easy credit proposals. The other statement deals with various provisions of the measure to which we have previously expressed objection. We would appreciate having these statements made a part of the official record of the hearings before your Committee. Sincerely yours, (Signed) M. S. ECCLES. Chairman. Enclosures 2 INFLATIONARY DANGERS IN TITLE IV OF S. 1592 Section 402 of S. 1592 would amend Section 203 of the National Housing Act so as to permit the Federal Housing Administration to insure loans for as much as 95 per cent of the value of the property, the loans to run for 32 years, at 4 per cent interest. Such insured mortgages would be available only on houses built under FHA inspection, and would not exceed $5,000. This section is proposed as part of a long-range Federal housing policy, but its enactment now or in the near future would strengthen the serious inflationary pressures in the housing market. It would not contribute to meeting the immediate need for both an increased supply of houses and better housing for families of low income. The housing crisis is typical of the inflation problem generally. It is due to the fact that the demand vastly exceeds the supply. There is a large accumulated shortage of housing units. At the 236 same time, incomes have never been so high as in the past few years, and never before has the general public had available such tremendous amounts of cash and readily convertible assets. When credit is required, borrowers have been able to obtain increasingly easy mortgage terms from banks and other lenders who, having ample funds, are eager to supplement their Government security holdings with higher yield investments. A ready availability of cash resources has thus combined with the unprecedented need for houses to bring about the inflationary situation in the housing field. To add to this dangerous pressure at this time by a still further easing of credit terms would make the inflationary danger all the greater without providing any new supplies whatever of houses on the market. The difficulty lies not in credit terms, which have been reduced substantially in the past decade, but in the immediate and prospective shortages of building materials of various kinds and of manpower. Any realistic attack on , the problem must look to remedies for these shortages as well as to solutions of the special difficulties created by antiquated building codes, by monopolistic practices affecting building materials as well as the building trades, by jurisdictional conflicts, and by similar restrictions which make for inadequate construction at excessive cost. Availability of credit is thus not the factor which limits additions to the supply of housing, and may not be for some years to come. While materials and manpower are short, further liberalization of credit terms would merely add to inflationary pressures. Whether further easing of credit terms would be desirable at some future time when the demand for housing is not in excess of the supply of manpower and materials is another question, and one which should be considered in the light of conditions then. Certainly at this time it would be illusory and misleading to the general public to enact legislation which in effect would serve only to intensify the demand factor without adding anything whatsoever to the supply side of the equation. If it is desired to increase the proportion of houses built in the lowest price ranges, action along lines of material allocation would appear to hold more promise. FEDERAL RESERVE BULLETIN REPORT OF BOARD ON PENDING LEGISLATION ON HOUSING COMMENTS REGARDING TITLE III OF S. 1592 Sections 301 and 302 Section 301 would authorize Federal savings and loan associations to lend or invest their funds in any mortgage or obligation which is insured under Title I or Title II of the National Housing Act, as amended. This would change existing law in two important respects. It would permit such an association to make loans on homes located more than fifty miles from its home office, and permit it to participate in the financing of large-scale rental housing, without regard to the limitation which now restricts the aggregate of such loans to 15 per cent of the assets of the association. These provisions should not be enacted. Savings and loan associations have traditionally been local thrift and home financing institutions, gathering investment funds of individuals from the local community and lending them out to home owners and prospective home owners within the local community. This is clearly the basic function which Congress intended Federal savings and loan associations to perform, although it permitted them, as a matter of operating flexibility and to meet unusual situations, to engage in other lending activities within well-defined limits. This element of flexibility is proper and useful, but if operations now permitted as exceptions to the rule should become the general rule, the basic function described above would be fundamentally altered. Therefore, the loans made on properties outside the association's locality (i.e., beyond 50 miles) should remain within the 15-per-cent-ofassets limitation. Furthermore the financing of large-scale rental housing should continue to be subject to the 15-per-cent-of-assets limitation. Such financing is essentially different from the financing of homes for owners and prospective owners. The borrower, in the case of rental housing, is not a home owner. He is an investor in a business enterprise just as is the hotel owner. Thus, the financing of largescale rental housing is essentially business financing, which it was never contemplated savings and loan associations would undertake. The Federal Home Loan Bank Board has, we think quite properly, recognized this fact because, although the present law would permit Federal savings and loan associations to make any non-home loan within the 15-per-cent-of-assets limitation, the Board, by reguMARCH 1946 lation, has imposed severe restrictions on the rental housing loans which they may make. It has limited such loans to 50 per cent of appraised value, except in the case of small apartments (5 to 12 families) for which the limit is 60 per cent, even though they are insured under the National Housing Act. For these reasons, the blanket authorization of Federal savings and loan associations to lend any amount anywhere on insured mortgages, which is contemplated by section 301 (and the corresponding provisions in section 302), should not be enacted. Section 303 The purpose of section 303 is to increase the amount of money which the Federal Home Loan Banks may borrow in the money market by widening the range of Bank assets on the basis of which debentures may be issued. The law as it now stands restricts the amount of debentures which the System may issue to the amount of advances to members secured by loans of the types prescribed by Congress in section 10(a) of the Federal Home Loan Bank Act. Thus, the power of the Home Loan Banks to obtain funds in the money market is geared to the volume of the advances to the member institutions secured by loans of the best type, namely, loans which qualify under section 10(a). It seems obvious that the present provision furnishes the Home Loan Bank System with borrowing capacity more than adequate to enable member institutions to meet the demand for such loans in communities where share accounts are insufficient. Within the limitation which relates debentures to capital, the Home Loan banks can now issue debentures on a one-for-one basis for the entire amount of 10(a) loans rediscounted. In what way could a demand arise which could not be met under the present provision? Only if member institutions should wish to rediscount other types of paper (or obtain unsecured advances) in considerable volume. Such other paper would include mortgage^ loans on business properties, apartment houses, and other non-home properties, as well as loans made on the security of share accounts. It seems apparent that Congress did not intend that such paper should form the basis for obtaining additional funds in the market. With the possible exception of loans on the security of share accounts, this is a type of financing that should be held within the 15-per-cent-of-assets limitation, as already 237 REPORT OF BOARD ON PENDING LEGISLATION ON HOUSING pointed out herein, and therefore that should not be encouraged by giving such paper, when discounted at a Home Loan bank, the same access to market funds as is enjoyed by 10(a) paper. In fact, the power to include such other paper in the debenture base would have the inevitable effect of eliminating the relative desirability of loans under section 10(a) which are clearly the most appropriate type of loan for mutual thrift and home financing institutions. The proposed amendment would also include in the debenture base of the System all Government obligations owned directly by the Federal Home Loan banks. This provision would permit Government obligations, including those held as part of the Banks' reserves, to be counted in the debenture base. The present law in our opinion is over-generous in providing that required reserves may be invested in earning assets (the reserves of commercial banks and those of the Federal Reserve Banks may not be in earning assets) and the proposed amendment would go even further by allowing the reserves to be again multiplied by forming a base for the issuance of debentures. There is nothing in the present law which restricts the power of the System to raise money to perform the functions it was established to perform, namely, to provide a reservoir of funds on which member institutions can draw when the demand for sound home mortgage loans in their communities exceeds the amount of share investment. Without issuing debentures, the Banks can make advances out of their own capital, as well as from deposits they may have from member institutions which have more share capital than mortgage loans. When demands on the Banks exceed these resources, the System may borrow from the money market the entire amount of section 10(a) advances from the Banks to their members. Bearing in mind that Federal savings and loan associations are forbidden by law to accept deposits and that the holder of a share in such an institution should not expect the same liquidity as the owner of a deposit in a commercial bank, it seems obvious that the Federal Home Loan banks should not need to raise funds on the basis of assets other than loans of the types described in section 10(a) of the Federal Home Loan Bank Act. The most likely use for such funds would be to make unsecured advances to member institutions to enable them 238 to meet demands for share withdrawals—an operation which is clearly inconsistent with the nature of share accounts and the uniform charter provisions of Federal associations governing withdrawals. Section 303 is therefore open to objection on the following principal grounds: first, because it would broaden the base for debentures in such a manner as to encourage lending by member institutions of types which are inappropriate for local mutual thrift and home financing institutions; second, because, by including paper not conforming to section 10(a) as well as Government obligations owned directly by the Federal Home Loan banks, whether as part of their reserves or not, it would make available to the banks far more funds than they need in order to perform their functions; and third, because it is desirable that the reserves of the Federal Home Loan banks, which are already invested in earning assets, should not be used as a basis for further generation of credit. The argument which has been advanced that the Federal Home Loan banks have not participated as fully in the financing of the war as they would if Government obligations could be included in the debenture base, is not convincing. The Treasury has said repeatedly that it does not want institutions to borrow money in order to purchase Government bonds. Section 306 The reserve which Congress has said should some day reach 5 per cent of the Federal Savings and Loan Insurance Corporation's insured risk was, on June 30, 1944, after 10 years of operation, only 0.57 per cent of the insured risk. Section 306 would reduce the insurance premium due from insured institutions by one-third, and would consequently slow down the rate at which the reserve is accumulated. In a period when losses were high, the reserve would be sadly deficient. It might be argued that the right to assess insured institutions for losses and operating expenses could be used to meet larger losses, but apart from the fact that the Corporation has never yet used this power of assessment, it is doubtful that assessments after large losses have started would be effective in yielding the amount of revenue that would be required (since the amount of assessment for any one year is limited) or could,, in such a period of widespread strain, be conFEDERAL RESERVE BULLETIN: REPORT OF BOARD ON PENDING LEGISLATION ON HOUSING veniently paid by the institutions. Indeed, it is contrary to all insurance principles to attempt to assess the insured after the risk insured against has materialized. One of the arguments advanced in support of this proposal in previous years was that the risk insured by the Federal Savings and Loan Insurance Corporation is about the same as that insured by the Federal Deposit Insurance Corporation, and that therefore the premiums should be similar. However, the risk is far from being the same. In the first place, banks insured by the FDIC as of June 30, 1945, had cash and United States Government securities totaling 112 billion dollars as against total deposits of 134 billion, leaving a balance of 22 billion as the only part of their deposits involving risk of loss to the FDIC. Capital accounts (capital, surplus, undivided profits and reserves) totaled 8 billion dollars. The ratio of capital accounts to these remaining deposits was therefore 1 to 2.7. By comparison, institutions insured by the Federal Savings and Loan Insurance Corporation, as of December 31, 1944, had cash and United States Government securities totaling 1.5 billion dollars as against total private repurchasable capital (shares), including deposits and investment certificates of 4 billion dollars, leaving a balance of 3 billion. The undivided profits and reserves of the insured institutions amounted to approximately 0.36 billion dollars, a ratio of 1 to 8. On this basis, the cushion provided by the capital accounts of institutions insured by the FDIC is three times as great as that provided in the case of accounts insured by the Federal Savings and Loan Insurance Corporation. In the second place, the comparison of the risks should be on the basis of the insured accounts of the institutions and not their total assets. The MARCH 1946 capital accounts of institutions insured by the FDIC amounted, in 1943, to 20 per cent of the insured deposits, while the capital accounts of institutions insured by the Federal Savings and Loan Insurance Corporation amounted to only about 9 per cent of its insured accounts. In other words, a comparison on this basis, without taking into account the cash and United States Government securities which would tend to reduce the risk, would show that the cushion in the case of the FDIC is over twice as great as in the case of the Federal Savings and Loan Insurance Corporation. Finally, the difference is further accentuated by the fact that, whereas virtually all of the share accounts and deposits of the institutions insured by the Federal Savings and Loan Insurance Corporation are covered by insurance, only about 38 per cent of the total deposit liabilities of insured banks are insured by the FDIC (its Annual Report for 1943 indicates that 36 billion are insured out of a total of 94 billion). This means that the effective premium rate of the FDIC is approximately Y5 of one per cent of insured deposits. Consequently, even if the other factors were equal, the rate for the Federal Savings and Loan Insurance Corporation should be raised instead of lowered in order to make it comparable with that of the FDIC. The Federal Savings and Loan Insurance Corporation has 100 million dollars of Governmentfurnished money. This is, in effect, a subsidy. At the present time, when the national debt is so great and such earnest efforts are being made to increase Government receipts it would be more prudent to permit the rate to remain where it is with the ultimate view of repaying this 100 million dollars to the Treasury when possible, rather than to reduce the rate in the face of all the factors outlined above. 239 FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V In the early stages of the National Defense Program, prior to July 1940, the principal sources of working capital credit for defense contractors were commercial bank loans, Federal Reserve Bank loans under Section 13b of the Federal Reserve Act, and Reconstruction Finance Corporation industrial loans. Also, the War and Navy Departments had authority to make progress payments on certain contracts up to the value of the work completed, protected by a lien upon the articles being produced. In order to meet the demands of defense contractors; particularly to finance their initial heavy costs, the Navy Department was later authorized in the Act of June 28, 1940, to make advance payments on contracts for war supplies not exceeding 30 per cent of the contract price. Similar authority was given the War Department in the Act of July 2, 1940. These provisions were superseded by Title II of the First War Powers Act of December 18, 1941, under which Executive Order 9001 was issued authorizing the War and Navy Departments and the Maritime Commission to make advance, progress, and other payments upon their contracts in any percentage of the contract price whenever, in their judgment, the prosecution of the war would be facilitated thereby. The extension of commercial bank credit to war production contractors was greatly facilitated by the Assignment of Claims Act of 1940, which became effective on October 9, 1940. This Act amended former statutes so as to provide in substance that claims for moneys due or to become due from the United States under a contract providing for payments aggregating $1,000 or more might be assigned to a bank, trust company, or other financing institution, including any Federal lending agency. The Assignment of Claims Act was of no assistance to subcontractors who held no prime contracts. Both the War and Navy Departments soon found that the methods of financing thus made available were still inadequate, particularly in view of the fact that the extension of subcontracting under the war production program to a point never before contemplated in American industry brought many hundreds of small companies into the program. Situations arose, especially among subcontractors 240 and sub-subcontractors, where the amount of working capital required was far beyond any amount that a commercial bank could be asked to provide without some form of protection against loss, or was in excess of the bank's legal lending limit, and where it was either not possible or not feasible to handle the situation through advance payments. Moreover, certain inherent disadvantages limited the amount of financing of war production contracts through advance payments. First, and most important of all, advance payments could legally be made only to contractors with the Armed Services, i. e., prime contractors. It was possible for the prime contractor, with the approval of the contracting agency, to use funds received from the Services to make advances to his subcontractors, and in many cases this was done. In general, however, this procedure was not feasible, and therefore advance payments did not prove to be a satisfactory method of meeting the credit needs of subcontractors. In the case of contractors who had contracts with different supply services of the War Department or bureaus of the Navy Department, the limitation of the use of advance payment money by each service or bureau to its own contracts resulted in difficult problems of maintaining segregated accounts. The financing through advance payments of a prime contractor who was also a subcontractor led to similar administrative problems. Other difficulties grew out of the necessity of making certain that large portions of the amounts authorized were not advanced before they were actually needed. Premature advances resulted in funds lying idle in the banks. Finally, advance payments were originally made without interest, and this tended to encourage contractors to acquire unnecessarily large stocks of raw materials before they were actually needed. The imposition of a standard interest charge of 2% per cent in June of 1942 did much to eliminate this difficulty. Early in 1941 the War and Navy Departments, recognizing the difficulties of financing contractors by advance payments, suggested the possibility of some form of joint financing to be participated in by the Services and private banks. Various bills to remedy the situation were introduced in Congress, including one, supported by the War and FEDERAL RESERVE BULLETIN FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V Navy Departments, to amend Section 13b of the Federal Reserve Act so as to liberalize the authority of the Federal Reserve Banks to provide working capital for industry. None of this legislation was enacted. The origin of Regulation V loans. In the meantime, problems of securing the financing of individual war contracts were becoming more numerous, particularly from the point of view of the production program of the War Department. In the latter part of February 1942 a conspicuous incident arose in which a subcontractor whose production was vital to the aircraft program was unable to secure essential working capital through private sources or by advances from his prime contractor. This brought the entire matter to a head. It seemed apparent that necessary legislation could not be obtained without additional delay and that some quicker method of solving the problem must be found. A means of achieving the desired result was suggested by officials of the War Department after discussions with representatives of the Board of Governors and others. This contemplated the issuance of an executive order under which the Federal Reserve Banks would act as fiscal agents for the Services in the guaranteeing of loans made by financing institutions for war production purposes. Through prompt action in formulating a workable program a serious impediment to maximum production by small contractors, sorely needed at that time, was eliminated. It was early decided that the program, which became known as the "V" loan program, was one which could be advantageously utilized by both the War and Navy Departments and by the Maritime Commission. Representatives of those agencies, as well as of the War Production Board and the Board of Governors of the Federal Reserve System, participated in policy making conferences from the beginning. In order to obtain the necessary authority to put the program into effect, the Chairman of the War Production Board, the Under Secretary of War, the Under Secretary of the Navy, and the Chairman of the Maritime Commission addressed a joint letter to the President of the United States, proposing an executive order under the First War Powers Act which would authorize the War and Navy Departments and the Maritime Commission to guarantee, or participate in, loans or commitments entered into by any Federal Reserve Bank, the Reconstruction MARCH 1946 Finance Corporation, or any other financing institutions to finance contractors engaged in war production. It was also proposed that the executive order should designate the Federal Reserve Banks as fiscal agents for the Services so as to utilize the existing experience and personnel of the twelve Federal Reserve Banks and their 24 branches located throughout the United States. The proposed executive order was approved by the Bureau of the Budget and by the Office of the Attorney General, and was signed by the President on March 26,. 1942, as Executive Order No. 9112. Confirmation of the executive order by Congress was included in the Act of June 11, 1942, which created the Smaller War Plants Corporation. The Executive Order provided that the operations of the Reserve Banks should be subject to such directions and conditions as the Board of Governors of the Federal Reserve System, by regulation, might prescribe after consultation with the Services. Regulation V of the Board of Governors was issued effective April 6, 1942, setting forth the general arrangements under which the Reserve Banks would act on behalf of the Services. It made the Reserve Banks responsible for carrying out instructions issued by the Services and reserved for the Board of Governors the power to prescribe rates of interest, guarantee fees, and other charges in connection with guaranteed loans. Instructions were promptly issued by the Secretary of War, the Secretary of the Navy, and the Chairman of the Maritime Commission to the Federal Reserve Banks with respect to their duties as agents for the Services. Among other things, these instructions provided for investigation, report, and recommendation by the Federal Reserve Bank in connection with each application for a guarantee. Operating procedure under Regulation V. In the War Department, the V loan program was administered by the Advance Payment and Loan Branch, Office of the Fiscal Director, and in the NaVy' Department and the Maritime Commission by their respective Finance Divisions. The general procedure under which loan guarantees were granted was about as follows. The manufacturer, or other war contractor, who had need of financing to handle his war contracts would apply to his local banker for credit. If the needed credit was in excess of that which the local bank could furnish because of the risk or of legal loan limitations, the bank would apply to the nearest Federal Reserve 241 FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V Bank or branch for a guarantee of a specified per- guaranteeing agencies and at the twelve Federal centage of the proposed loan. The local bank Reserve Banks and their branches. Important would usually suggest terms and conditions of the policy questions were discussed by a joint policy loan and furnish necessary credit data. The Re- committee made up of representatives of the three serve Bank would then review the information, guaranteeing agencies and of the Board of Goverand approve the terms or suggest such modifications nors, and the resulting uniformity in policy deas seemed necessary to protect the interest of the cisions was responsible to a considerable degree for the success of the Regulation V financing program. Government. In connection with its program of decentraliza- The Office of the Administrator for War Loans tion, the War Department assigned liaison officers obtained periodic reports from the Federal Reserve to serve at each of the twelve Federal Reserve Banks covering their guaranteed loan operations Banks, the Detroit Branch of the Federal Reserve and has maintained the statistical records on which Bank of Chicago, and the Los Angeles Branch of published data are based. the Federal Reserve Bank of San Francisco. These The first standard form of guarantee agreement liaison officers were required to certify that each for use by the War Department, Navy Department, borrower applying for a War Department guaran- and Maritime Commission was issued under date tee was engaged in an operation deemed to be of May 14, 1942. The guarantee takes the form of necessary, appropriate, or convenient for the prose- an obligation on the part of the guarantor to purcution of the war and was in need of funds to chase the guaranteed percentage of the outstanding expedite war production. They also entered into amount of the loan from the financing institution negotiations with the Reserve Banks and the bor- on ten days' notice, irrespective of whether any rowers as to the terms necessary to protect the default had occurred on the part of the borrower. Government's interest. Field officers of the Mari- The guarantee agreement of May 14, 1942, contime Commission furnished similar statements of tained provisions, Sections 5 and 6, to protect both the financing institution and the borrower against necessity with reference to its guaranteed loans. The War Department delegated to the Federal cancellation of the borrower's war contracts for the Reserve Banks authority to approve, with the con- convenience of the Government. Section 5 procurrence of the liaison officer, and execute guaran- tected the financing institution by providing, in the tees of loans of $100,000 or less if the percentage event of cancellation, for an increase in the guaranof guarantee was not in excess of 90 without sub- tee percentage based upon the ratio of the borrower's mission of the application to Washington. The cancelled contracts to its total war contracts. SecMaritime Commission delegated similar authority tion 6 gave protection to the borrower by providing, to the Reserve Banks when the guaranteed portion in the event of cancellation, for a suspension of of the loan was not in excess of $100,000. Because maturity and a waiver of interest on a portion of most of the Navy Department procurement pro- the loan based l upon the same ratio. Interest so gram was centralized in the technical bureaus in waived, up to 2 /2 per cent per annum, was payable Washington, it was believed that applications for by the guarantor. Benefits of these protective proloan guarantees could be acted upon more promptly visions continued in effect until settlement of the if they were all forwarded to Washington for con- contracts on which the adjustments were based. The following charges for guarantee fees payable sideration. Consequently, the Navy Department did not delegate authority to the Reserve Banks to by financing institutions were prescribed by the approve and execute guarantees without submission Board of Governors in April 1942 after joint approval by the Under Secretary of War, the Under of the applications to Washington. All applications for guaranteed loans, and all Secretary of the Navy, and the Chairman of the correspondence between the Federal Reserve Banks Maritime Commission: and the guarantors in connection with the V loan Percentage of loan Guarantee fee guaranteed (Percentage of loan rate) program, passed through the Office of the Adminis0 to 75 10 to 20 trator for War Loans of the Board of Governors. 76 to 90 20 to 25 By having all matters pertaining to the program 91 to 100 30 to 40 pass through a single office, it was possible to establish substantially uniform procedures by all three A maximum interest rate of 5 per cent on guaran242 FEDERAL RESERVE BULLETIN FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V teed loans was stipulated. Within this limit the interest rate was determined by the borrower and the financing institution. A revised schedule of guarantee fees was adopted on December 29, 1942, as follows: these fears, the War Department, Navy Department, Maritime Commission, and Board of Governors announced on September 1, 1943, a broadened basis for the guaranteeing of loans which would enable contractors who made arrangements in advance to obtain the use of most of their working Percentage of loan Guarantee fee capital promptly upon cancellation of their war guaranteed (Percentage of loan rate) contracts for the convenience of the Government. 10 60 or less 12 Vz 65 Loans guaranteed upon this broadened basis 15 70 were known as VT loans to distinguish them from 75 17/ 2 V loans. V loans were essentially production loans 20 80 although in some cases they contained certain pro85 22 Vz visions for termination financing as well. They 25 90 (for loans of $150,000 or less) 25-30 90 (for loans over $150,000) were, in general, made to concerns who were sub30-50 Over 90 contractors or mixed prime and subcontractors or prime contractors having contracts with a number After a year's experience a revision of the standard form of guarantee agreement was adopted of different technical services or with both the Army effective April 6, 1943, primarily to effect certain and Navy. Frequently the concern may have had technical improvements. It was prepared by repre- several hundred contracts and purchase orders sentatives of the War Department, Navy Depart- which had to be financed on an over-all basis. ment, Maritime Commission, and the Board of The loans thus usually took the form of revolving Governors of the Federal Reserve System, after credits with maturities usually not exceeding two discussions with members of the War Loans Com- years. They required repayments out of moneys mittee of J:he American Bankers Association, mem- coming due from war production contracts assigned bers of the Banking Practice Committee of the as security. VT loans were similar except that they were Reserve City Bankers Association, officers and attorneys of the twelve Federal Reserve Banks, and intended to free working capital upon termination a selected group of attorneys for commercial banks of contracts as well as to provide working capital to finance the contracts. VT loans were guaranteed in various parts of the country. The scope of operations under the guaranteed under the standard form of guarantee agreement loan program was enlarged by Executive Order No. used for V loans, with two principal amendments. 9336 issued by the President on April 24, 1943. The first required the financing institution to have This order authorized the Office of Lend-Lease a participation in the loan at all times; accordingly, Administration and the War Shipping Adminis- the original percentage of guarantee specified was tration to underwrite any guarantees made on their not subject to increase upon cancellation of war behalf by the War and Navy Departments and the production contracts as was the case with V loans under Section 5 of the guarantee agreement. The Maritime Commission. On May 12, 1943, the Board of Governors estab- second amendment required the financing institulished a maximum of lA per cent per annum for tion to share with the guarantor any commitment any commitment fee charged the borrower by the fee charged the borrower on the loan. The maximum amount of credit available to a financing institution on a Regulation V loan. Extension of program to include VT loans. Dur- borrower under a VT loan was based upon a stated ing the summer of 1943 it became evident that percentage of inventories, work in process, accounts many concerns engaged in war production were receivable, and, without duplication, amounts paid reluctant to assume additional war contracts because or concurrently to be paid to subcontractors or of the fear that their working capital would be tied suppliers on claims arising out of the termination up in such contracts at the termination of the war. of war production contracts. The Board of GovThey felt this might delay their return to peacetime ernors prescribed a maximum commitment fee of operations and thus place them in an unfavorable Y2 per cent on VT loans. The Maritime Commission did not authorize any competitive position. In order that war production schedules might not be interfered with because of VT guarantees, as it desired to guarantee loans MARCH 1946 243 FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V only for war production purposes. The Navy Department restricted borrowings, prior to cancellations, to amounts actually needed for war production purposes. The War Department, however, did not insist upon any such limitations, leaving it entirely up to the financing institutions to see that all borrowings were within the terms of the borrowing formula. Legislation for contract termination loans. In the fall of 1943, steps were taken to provide legislation covering contract termination financing. The Joint Contract Termination Board established a Subcommittee on Interim Financing, which prepared a statement of policy on termination financing, that was incorporated in the Baruch-Hancock Report on War and Post-War Adjustment Policies of February .15, 1944. The recommendations of this report were in turn reflected in the Contract Settlement Act of 1944, approved July 1, 1944. On August 18, 1944, the Director of Contract Settlement issued his General Regulation No. 1 prescribing procedures and policies to be followed by the War and Navy Departments and the Maritime Commission in guaranteeing termination loans through the agency of the Federal Reserve Banks. Such termination loans, known as T loans, arc for the purpose of enabling war contractors to obtain the use of funds tied up in war production pending final settlement of claims arising from terminated contracts. The T loan program was a logical extension of the V and VT loan programs, and Regulation V of the Board of Governors of the Federal Reserve System was revised effective September 11, 1944, to cover loans made under the Contract Settlement Act as well as loans made under the President's Executive Order No. 9112. Under the T loan program the War Department and Maritime Commission delegated to the Federal Reserve Banks authority to execute guarantees of loans totaling (a) $500,000 or less to any one borrower when the requested percentage of guarantee is not in excess of 90 and (b) $100,000 or less to any one borrower when the requested percentage of guarantee is not in excess of 95, subject to the concurrence of the liaison officer in the case of applications for War Department guarantees, and of the field officer in the case of Maritime Commission guarantees. Since September 1944 only two types of guaranteed loans have been authorized, namely, T loans and 1944V loans. 1944V loans were to provide 244 working capital for war production purposes or to provide funds for both production and contract termination financing. These new 1944V loans were similar to the VT loans made between September 1943 and September 1944. The form of guarantee agreement was simplified and shortened, largely by deleting Sections 5 and 6 of the April 6, 1943, form of agreement. The War Department delegated to the Federal Reserve Banks authority to execute, with the concurrence of the liaison officer, guarantees of 1944V loans totaling $250,000 or less to any one borrower when the requested percentage of guarantee was not in excess of 90. Similar authority was delegated to the Reserve Banks by the Maritime Commission with respect to guarantees of $100,000 or less on loans to any one borrower when the requested percentage of guarantee was not in excess of 90. Guarantee fees prescribed by the Board of Governors for T loans and 1944V loans were substantially below those which were in effect for V and VT loans. The maximum rate of interest which might be charged a borrower was reduced from 5 per cent to 4^2 per cent. The following is the schedule of fees payable to the guarantor by the financing institution on both 1944V and T loans: Percentage of loan guaranteed 80 or less 85 90 95 Over 95 Guarantee fee (Percentage of amount of interest payable by borrower) 10 15 20 30 50 The maximum commitment fee that a financing institution may charge is 54 per cent or a flat fee not to exceed $50, and the sharing in the commitment fee by the guarantor was eliminated. Decline in lending activities. Cancellations of war contracts following termination of the war in Europe in May and in the Pacific in August did not bring any substantial increase in applications for guaranteed termination loans. Upon the Japanese surrender, it was determined by the Services that new Regulation V loans other than T loans should be authorized only in exceptional cases in which there is a clear necessity for procurement of supplies or services from a particular borrower and no other means of adequate financing is available to that borrower. Pursuant to that policy only a few 1944V guarantees have been authorized since August 1945. FEDERAL RESERVE BULLETIN FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V Between September 1945 and the middle of January 1946 the War Department closed its liaison offices at the Federal Reserve Banks. Incident to the decline in guaranteed loan activity and the discontinuance of the War Department liaison offices, authority was delegated to the Federal Reserve Banks by the War and Navy Departments to take action without submission to Washington whenever, in the discretion of the Reserve Bank, such action is deemed to be of relatively minor importance and not materially affecting the interests of the guarantor. Such authority to act includes amendments of guarantee agreements and loan agreements, consents or approvals concerning acts by borrowers or financing institutions, waivers of default, and extensions of maturity not exceeding 60 days. Applications for War Department guarantees have been submitted to Washington for approval since discontinuance of its liaison offices at the Federal Reserve Banks. Statistical summary of guaranteed loans. To December 31, 1945, a total of 1,400 banks and other financing institutions had made or participated in guaranteed loans under Regulation V. The smallest credit guaranteed was for $400 and the largest for one billion dollars. Nearly 400 banks participated in the latter credit, of which only 100 million dollars was utilized. This credit, like many other guaranteed loans, was arranged for under the provisions of Regulation V because the guaranteed portion of Regulation V loans was not subject to legal limitations on the amount which might be lent to a single borrower. The maximum amount of this particular credit was in excess of the total lending capacity of all the commercial banks in the country (approximately 600 million dollars) on such loans to a single borrower. Of the total number of Regulation V loans authorized, 58.6 per cent were for loans of $250,000 or less and approximately 75 per cent were for amounts of $500,000 or less, indicating that many smaller concerns were assisted by this method of financing. Table 1 shows the percentage of total number and amount of guaranteed loans authorized, classified by size of loan. In general, it was the policy of the Services to keep the percentages of guarantee as low as the character of the risk and the size of the loan justified. The reason for this was to insure adequate servicing of the loans by the financing institutions. Guarantees were accordingly ordinarily MARCH 1946 limited to 90 per cent, many were substantially below that percentage and in few cases did the percentage of guarantee exceed 90. The guaranteed TABLE 1 PERCENTAGE DISTRIBUTION OF REGULATION V LOANS AUTHORIZED TO DECEMBER 31, 1945 BY SIZE OF LOAN Percentage of total Percentage of total number of loans amount of loans Size of loan Group $10,000 or less 10,001-50,000 50,001-100,000 100,001-250,000 250,001-500,000 500,001-1,000,000 1,000,001-5,000,000 5,000,001-50,000,000 Over 50,000,000 Cumulative Group Cumulative 5.3 18.4 15.8 19.1 16.3 10.8 11.4 2.7 0.2 5.3 23.7 39.5 58.6 74.9 85.7 97.1 99.8 100.0 0.2 0.5 1.1 2.9 5.4 7.2 22.0 31.5 29.2 0.2 0.7 1.8 4.7 10.1 17.3 39.3 70.8 100.0 100.0 100.0 portion of loans outstanding December 31, 1945, averaged 85 per cent. From the beginning of the V loan program in April 1942 to December 31, 1945, the Federal Reserve Banks received 9,605 applications for guaranteed loans aggregating $10,674,433,000. The War Department, Navy Department, and Maritime Commission authorized 8,757 guaranteed loans totaling $10,339,400,000. Of these authorizations 6,678 for $7,952,972,000 were War Department guarantees; 1,794 for $2,212,241,000 were Navy Department guarantees; and 285 for $174,187,000 were Maritime Commission guarantees. Only 847 applications aggregating $334,833,000 were rejected by the guaranteeing agencies. The principal reasons for rejections were that the guarantor could not certify that the production of the applicant was necessary, appropriate, or convenient for the prosecution of the war, or that it was believed preferable to provide the necessary financing by advance payments. Of the 8,757 guarantees authorized, 7,999 were actually executed, covering credits aggregating $9,891,284,000. Total credit available under guaranteed loans was always considerably in excess of the amounts being borrowed. The largest amount of Regulation V credit outstanding at any time was $2,083,435,000 at the end of July 1944. Credit available reached its peak at the end of October 1944, when almost $6,263,065,000 was available to borrowers under guaranteed loans. Figures showing the total amount of credit available and of guaranteed loans out- 245 FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V standing semiannually trom December 31, 1945, are given Table 3 shows by Federal total number and amount June 30, 1942, to in Table 2. Reserve district the of applications for TABLE 2 TOTAL CREDIT AVAILABLE UNDER REGULATION V LOANS AND AMOUNT OF GUARANTEED LOANS OUTSTANDING SEMIANNUALLY JUNE 30, 1942—DECEMBER 31, 1945 Credit available June 30. 1942 Dec. 31, 1942 June 30, 1943 Dec. 31, 1943 June 30, 1944 Dec. 31, 1944 June 30, 1945 Dec. 31, 1945 * Loans outstanding $218,996,571 2,233,841,266 3,638,305,895 5,060,326,526 5,875,114,565 6,189,556,384 5,081,469,152 1,476,864,742 Date $81,108,115 803,720,080 1,428,253,058 1,914,040,298 2,064,317,958 1,735,970,146 1,386,850,954 510,269,776 guaranteed loans approved to December 31, 1945, and the amount of loans outstanding and credit available to borrowers under guarantee agreements in effect on that date. Many guaranteed loans, particularly the larger ones, were participated in by a group of banks, often located in different Federal Reserve districts. These loans are shown in the table for the Federal Reserve Bank in whose district the bank acting as agent for the group was situated. Furthermore, guaranteed loans obtained by the larger corporations having plants in various parts of the country are shown in the figures of only one district, whereas the credit was used in a number of districts. Also, some large borrowers arranged for credit with a bank in a different Federal Reserve district from the one in which their production was carried on. For these reasons, the district figures do not reflect the total amount of war production credit made available under guaranteed loans in the various districts. Table 4 shows the number and amount of each type of guaranteed loan authorized to December 31, 1945, and the amount of loans outstanding and credit available to borrowers under the various types on that date. A study of Regulation V loans outstanding on November 30, 1943, when the volume had almost reached its peak, indicated that about one-fourth of the $1,798,272,000 of guaranteed loans then outstanding under 1,860 guarantee agreements was TABLE 3 REGULATION V LOANS AUTHORIZED AND CREDIT OUTSTANDING DECEMBER 31, 1945 BY FEDERAL RESERVE DISTRICTS Federal Reserve district Applications for guarantee of loans approved to date Number Amount Amount of credit available to borrowers including amount outstanding Loans outstanding Guarantee on loans outstanding 472 1,510 491 727 275 235 2,058 432 288 426 251 1,592 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago.... St. Louis Minneapolis Kansas City Dallas San Francisco Total . .... $238,520,992 4,505,998,085 322,660,550 682,147,860 85,172,056 116,911,800 2,728,049,482 362,865,872 128,159,773 261,093,446 97,243,300 810,576,712 $43,829,277.50 689,103,764.31 68,419,117.12 81,430,697.13 12,092,838.86 14,551,916.89 353,318,048.40 39,993,000.00 13,348,850.28 20,312,840.98 3,805,000.00 136,659,390.32 $16,245,136.48 201,459,124.88 37,304,252.34 40,271,393.12 2,187,748.53 4,717,869.77 137,680,457.87 10,046,982.76 4,316,783.98 6,143,512.36 625,605.14 49,270,909.24 $14,563,035.14 168,578,287.97 31,879,169.70 35,496,148.17 1,795,459.89 4,226,091.45 121,137,430.36 9,036,404.48 3,905,093.18 5,497,410.09 563,044.63 38,667,006.93 8,757 $10,339,399,928 $1,476,864,741.79 $510,269,776.47 $435,344,581.99 TABLE 4 REGULATION V LOANS AUTHORIZED AND CREDIT OUTSTANDING DECEMBER 31, 1945 BY TYPES OF LOANS Applications for guarantee of loans approved to date Type ot loan Number V Loans VT Loans . . . 1944 V Loans T Loans Total 246 . . Amount 5,953 857 1,117 830 $6,230,964,222 2,441,437,000 1,280,038,809 386,959,897 8,757 $10,339,399,928 Amount of credit available to borrowers including amount outstanding $481,938,707.76 392,093,752.49 432,231,408.58 170,600,872.96 $1,476,864,741.79 Loans outstanding Guarantee on loans outstanding $139,907,095.62 134,111,641.19 206,216,163.10 30,034,876.56 $117,555,630.95 111,009,791.72 181,186,694.20 25,592,465.12 $510,269,776.47 $435,344,581.99 FEDERAL RESERVE BULLETIN FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V being used for the production of aircraft and its accessories. Nearly half of the credit outstanding went to borrowers making such articles as machinery, electrical equipment and appliances, and a variety of metal products. Table 5 shows the amount of Regulation V loans outstanding on November 30, 1943, classified by type of product covered in contracts held by the borrowers. About 45 per cent of the total number of Regulation V loans outstanding on November 30, 1943, carried the maximum interest rate of 5 per cent, but this rate was being charged on less than 6 per cent of the total amount of credit outstanding. This indicates that most of the small loans were made at the maximum rate, although many of them were made at rates of 3 to 5 per cent. Rates of 3 per cent or under were common for the larger loans. Table 6 shows the amount of guaranteed loans outstanding on November 30, 1943, classified by rate of interest being charged on the loan and by size of the borrowing company. From the inception of the guaranteed loan program to December 31, 1945, the Federal Reserve Banks collected $23,720,000 in guarantee and commitment fees for the account of the War Department. The Reserve Banks* expenses reimbursed by the War Department during this period amounted to $2,474,000, leaving net receipts to the War Department of $21,246,000. As of December 31, 1945, the War Department estimated that its total losses on guaranteed loans would not exceed $3,369,000. During the same period guarantee and commitment fees collected by the Reserve Banks for the account of the Navy Department amounted to $7,736,000. The Reserve Banks' expenses amounted to $760,000, leaving net receipts to the Navy Department of $6,976,000. On December 31, 1945, the Navy Department estimated that its total losses would not exceed $2,500,000. The Federal Reserve Banks collected $709,000 in guarantee fees for the account of the Maritime Commission. Total expenses of the Reserve Banks amounted to $152,000, leaving net receipts to the Maritime Commission of $557,000. Losses on loans written off by the Maritime Commission to August 31, 1945, amounted to $83,000. No losses have been sustained since that date, and the Commission does not anticipate suffering further losses. As of December 31, 1945, the War Department had purchased 115 loans from financing institutions in the total amount of $27,480,000, upon which colMARCH 1946 TABLE 5 REGULATION V LOANS OUTSTANDING NOVEMBER 30, 1943 BY TYPE OF PRODUCT COVERED IN CONTRACT [Amounts in millions of dollars] Type of product covered in contract Amount Per cent Metal and metal products Aircraft, aircraft engines, parts, and accessories Ship construction and repair: accessories... Combat transportation and other motor vehicles; accessories Guns, ammunition, bombs, shells, etc.; explosives and ammunition loading and assembling Machinery, electrical equipment & appliances Other metal products; iron & steel; nonferrous metals and their products; machine tools and other metal working equipment; etc Chemicals, drugs, rubber Textile products, leather Foods and related products Other manufactured products, including contracts unallocable because of diverse products covered. Construction '. Other nonmanufacturing and noninduatrial... 429.2 100.6 23.9 5.6 139.4 7.8 7.6 19.0 504.1 30.7 15.3 22.7 28.0 1.7 0.8 1.3 55.4 16.2 6.1 3.1 0.9 0.3 1,798.3 Total 137.2 341.4 100.0 TABLE 6 PERCENTAGE DISTRIBUTION OF AMOUNT OF REGULATION V LOANS OUTSTANDING NOVEMBER 30, 1943, BY RATE OF INTEREST AND BY SIZE OF BORROWER Loans to borrower s with total assets of Rate of interest (per cent) Total1 2 2-3 3 3-4 4 4-5 5 39.7 23.2 18.0 10.2 3.0 5.7 0.9 19.4 16.6 2.0 61.0 ""3.5" 0.7 8.1 23.2 13.2 50.3 0.2 4.6 18.3 31.9 25.9 8.7 10.4 0.0 55.0 26.3 13.9 4.0 0.4 0.3 Total.... 100.0 100.0 3 100.0 100.0 100.0 Less than $50,000- $500,000- $5,000,000 $50,000 $500,000 $5,000,000 and over 1 Total includes a small amount not classified by size of borrower as 2well as the two loans referred to in footnote 3. Less than .05 per cent. 3 Total includes one loan with interest rate of 1 per cent and one loan not classified by rate of interest. lections of $15,883,000 had been received, leaving an outstanding balance of $11,597,000. The Navy Department had purchased 24 loans totaling $31,096,000, and collections had been $28,176,000, leaving a balance of $2,920,000. Corresponding figures for the Maritime Commission were purchases totaling $623,000, collections of $540,000, and a balance of $83,000. From the beginning of the program to December 31, 1945, the War Department authorized 29 adjustments, involving increases in the percentage of guarantee, pursuant to the provisions of Section 5 247 FINANCING WAR PRODUCTION AND CONTRACT TERMINATIONS UNDER REGULATION V of guarantee agreements covering V loans, and 126 suspensions of maturity and waivers of interest payments by the borrowers under provisions of Section 6. The total principal amount of adjustments under the provisions of Section 6 was $168,666,000. The Navy Department approved four adjustments under the provisions of Section 5, and 25 adjustments under the provisions of Section 6. The total principal amount of loans on which adjustments under Section 6 were approved was $10,359,000. No adjustments were made by the Maritime Commission under provisions of Section 5 and only two adjustments under the provisions of Section 6. The total principal amount of the two Section 6 adjustments was $1,945,000. The Regulation V program facilitated the financing of war production contracts by utilizing the existing banking structure. Moreover, to a considerable extent the financing was decentralized, the loans being made by local banks to local industry. Without such a program it is probable that the production of war materials would have been more centralized and more Government financing through direct lending or by other means would have been necessary. The Armed Services, in letters to the Board of Governors regarding the participation of the Federal Reserve System in the financing of war production, recently stated that in their opinion the Regulation V program had made an important contribution to the achievement of maximum production by American industry and thus to the successful prosecution of the war. Distinguished Service in War Finance^ The Treasury Department's Silver Medal for Distinguished Service in War Finance was awarded today to the chairman and members of the Board of Governors of the Federal Reserve System and the presidents of the twelve Federal Reserve Banks by Secretary of the Treasury Fred M. Vinson. In presenting the medals, Secretary Vinson said: "The Federal Reserve System as fiscal agents of the Treasury Department processed some 186 billion dollars in securities in the seven War Loans and the Victory Loan and the interim sale of savings bonds since May 1, 1941. Despite a wartime shortage of personnel the System kept abreast of this flow of securities, without precedent in financial history for its volume. In this all ranks took part in the spirit of good soldiers, with great credit to themselves. In honoring thus the governors and presidents, all ranks 248 in the Federal Reserve System are being honored." The members of the Board of Governors awarded the Silver Medal are: Marriner S. Eccles, Chairman; R. M. Evans, M. S. Szymczak, Ronald Ranson, Ernest G. Draper and John K. McKee. The presidents of the Federal Reserve Banks, meeting in Washington this week, are: Ralph E. Flanders, Boston; Allan Sproul, New York; Ray M. Gidney, Cleveland; W. S. McLarin, Jr., Atlanta; C. S. Young, Chicago; Chester C. Davis, St. Louis; Alfred H. Williams, Philadelphia; J. N. Peyton, Minneapolis; H. G. Leedy, Kansas City; R. R. Gilbert, Dallas; Ira Clerk, San Francisco, and Hugh Leach, Richmond. The Silver Medal was awarded also to William A. Day, former president of the San Francisco Federal Reserve Bank. * Released to the press by the Department of the Treasury, Feb. 28, 1946. FEDERAL RESERVE BULLETIN LAW DEPARTMENT Administrative interpretations of banking laws, new regulations issued by the Board of Governors, and other similar material. Consumer Credit Board were each represented by counsel, and each presented evidence. Upon the basis of the facts Suspension of License and Consent Injunction developed at such hearing, the Board's Hearing The Board of Governors of the Federal Reserve Officer submitted his recommended findings and System has suspended for 60 days from February opinion, which were furnished to counsel in order 24 to April 24, 1946, the license of Motor City that they might file exceptions thereto, and subseCredit Jewelry Co., Inc., issued under the Board's quently, on January 25, 1946, oral argument was Regulation W. This company, which is located at had before the Board at its offices in Washington, 22900 Van Dyke Street, Van Dyke, Michigan (a D. C. suburb of Detroit), sells jewelry on an instalment At the hearing in Detroit, no evidence was introbasis. The order was issued after a hearing in duced by the Registrant to rebut the evidence of Detroit, at which evidence was taken, and oral ar- violations of the Regulation, and counsel for the gument before the Board in Washington. Under Registrant does not contend that the recommended the order the company will be prohibited from findings were unsupported by the evidence or making credit sales during the period of suspension. erroneous. They may therefore be accepted by the In addition, the United States District Court has Board. issued a decree, by consent, enjoining the company It appears that Registrant is a corporation orfrom further violations of the Regulation, thus ganized under the laws of the State of Michigan. putting the company under judicial restraint. Its sole office is located at 22900 Van Dyke Street, The company was charged with numerous and Van Dyke, Michigan, a suburb of the city of Derepeated violations of the Regulation. They in- troit, where it engages principally in the sale of cluded failure to obtain the down payments re- jewelry on credit. Its annual business is in excess quired by the Regulation and the falsification of the of $100,000. At all times mentioned herein, Regiscompany's records for the purpose of concealing the trant has been licensed by the Board under the failure to obtain the required down payments. provisions of Regulation W, and has been subject The Board's Findings and Opinion and Order to the requirements of that Regulation. Suspending License, are as follows: Registrant is a family corporation, its stock being owned 45 per cent by David Fink, 35 per cent by IN THE MATTER OF Sol Fink, a brother, and 20 per cent by their mother. MOTOR CITY CREDIT JEWELRY CO., INC., During the period covered by the evidence (September 1944 to November 1945) Registrant was VAN DYKE, MICHIGAN. under the management of David Fink, President, FINDINGS AND OPINION and Eleanor Fink, Secretary-Treasurer, assisted by This is a proceeding under section 3(d) of Regu- Leonard Fink, a brother, who was not an officer of lation W to determine whether the Motor City the company. For a part of this time there was Credit Jewelry Co., Inc., Van Dyke, Michigan also one other clerk in the store, a boy about 16 (hereinafter referred to as the "Registrant"), has years of age, whose name does not appear. violated sections 4(a) and 12(h) of said Regulation, On September 26, 1944, an investigator from and, if so, whether Registrant's license should be the Detroit Branch of the Federal Reserve Bank of Chicago made a routine investigation of Regisrevoked or suspended. The hearing was begun on November 9, 1945, at trant's books and records to determine whether the offices of the Detroit Branch of the Federal Registrant was complying with Regulation W. Reserve Bank of Chicago. The Registrant and the This investigation disclosed a number of apparent MARCH 1946 249 LAW DEPARTMENT violations, particularly shortages in the down payment required by section 4(a) of the Regulation. The violations also included several instances where the Registrant's records, which are required by section 12(h) of the Regulation to be adequate for the purpose of determining whether the provisions of the Regulation are being obeyed, were found to be totally inadequate for that purpose. These matters were called to the attention of Eleanor and Leonard Fink, who promised future compliance. A second investigation was made on January 19, 1945, which again disclosed numerous shortages in down payments, as well as a continued failure to maintain adequate records. As a result of this investigation, a disciplinary conference was held at the offices of the Reserve Bank on February 2, 1945, which was attended by David Fink. Once again, full future compliance was promised. A third investigation was commenced on April 17, 1945. Registrant's records indicated that Registrant had carried out the suggestions made at the disciplinary conference on February 2 and showed apparent substantial compliance with the Regulation. It was noted, however, that a considerable number of instalment credit transactions were marked "lay-away," indicating that the store had retained possession of the merchandise until the purchaser had paid the full amount of the down payment required by section 4(a) of the Regulation, at which time the records showed that delivery of the merchandise was made to the purchaser. No customer contacts were made to verify these notations in the company's records. A fourth and final investigation was commenced on August 31, 1945, and again a considerable number of "lay-away" transactions were noted. This time, customer contacts were made, and they disclosed the fact that Registrant had been systematically falsifying its records. Specifically, they disclosed that customers were allowed to take merchandise from the store on the day of purchase without making the required down payment, and that the records of these sales were marked "layaway," showing delivery of the merchandise on a subsequent date when the purchaser's payments had equaled or exceeded the required down payment. The conclusion is inescapable that Registrant availed itself of this artifice to conceal a studied and deliberate series of violations of the Regulation. In the face of repeated warnings, Registrant has continued to violate the most funda- 250 mental requirements of the Regulation, and for a time at least, these were aggravated by other violations designed to conceal them. In his oral argument before the Board, Registrant's counsel, without challenging the facts as found above, emphasized that two of the four Fink brothers had been absent in military service during all of the times referred to herein and one of these and their mother together own a majority of the stock of the Registrant. He urged that the Board give consideration to the fact that these two veterans, who expect to make their livelihood from the operation of the Registrant, and their mother, all of whom were innocent of any violations of the Regulation, would be severely penalized by a revocation of Registrant's license. Obviously, these arguments are in no sense exculpatory of Registrant's past continued disobedience of the Regulation. And, however much they may otherwise appeal to the Board, they may not properly be considered by it in carrying out its enforcement functions under the Regulation. The latter was promulgated as a part of the Government's program against inflation and, to be effective, should be obeyed by all to whom it applies. If the Board were to be deterred in its enforcement of the Regulation because of its possible effect upon innocent corporate stockholders, it would be establishing a precedent which might very well eliminate the Regulation as an effective medium of credit control. These considerations were pointed out to counsel for the Registrant at the time of the oral argument. At that time, however, the Board suggested that, if some arrangement satisfactory to the Board's counsel could be worked out which would give positive assurance of future compliance, the Board might, consistently with its duty to preserve public respect for and continued obedience to the Regulation, impose a less severe penalty than that recommended by the Hearing Officer. Since the oral argument the Board is advised that, as a result of a stipulation entered into between counsel on January 31, 1946, and approved by the Board on that date, the following events have occurred: 1. On February 14, 1946, a consent decree was entered in the United States District Court in Detroit against the Registrant and David Fink, together with all of Registrant's officers and emFEDERAL RESERVE BULLETIN LAW DEPARTMENT ployees, enjoining them from further violations of Regulation W. 2. David Fink resigned as President of the Registrant. 3. David Fink's stock interest in Registrant was reduced from 45 per cent to 30 per cent by the transfer of 15 per cent to his brother, Nathan Fink. 4. Appropriate resolutions were adopted by Registrant's stockholders placing the management of Registrant's business in Sol and Nathan Fink, requiring all credit sales to be subject to the approval of either of them, and excluding David Fink from the making of credit policies and restricting his executive and administrative activities solely to the handling of the building program and purchasing. In the light of the changes thus effected in the management of Registrant, and the continuing and effective nature of the judicial decree entered against it and its employees, the Board is satisfied that future compliance with the Regulation is reasonably assured. Under these circumstances the Board is disposed to reduce the sanction recommended by the Hearing Officer. Accordingly, it is the Board's decision that Registrant's license under Regulation W be suspended for a period of 60 days. An appropriate order will issue. By order of the Board of Governors of the Federal Reserve System this 18th day of February 1946. S. R. CARPENTER, Secretary. IN THE MATTER OF MOTOR CITY CREDIT JEWELRY CO., INC., VAN DYKE, MICHIGAN. ORDER SUSPENDING LICENSE A proceeding having been instituted before the Board under section 3(d) of Regulation W to determine whether the license of Motor City Credit Jewelry Co., Inc., should be suspended or revoked; public hearings having been held thereon; a Hearing Officer's report having been filed with the Board and oral argument had thereon; the Board having considered the entire record and arguments of counsel; and the Board having this day issued its findings and opinion, IT IS ORDERED, that the license of the Motor City Credit Jewelry Co., Inc., issued pursuant to the Board's Regulation W, be and the same hereby is suspended for the period from February 24, 1946, MARCH 1946 to and including April 24, 1946, unless this order is sooner terminated by the Board. By order of the Board of Governors of the Federal Reserve System this 18th day of February, 1946. S. R. CARPENTER, Secretary. Suit Regarding Removal of Bank Directors The United States Court of Appeals for the District of Columbia on February 13, 1946, rendered an opinion reversing the decision of the District Court which has dismissed a suit filed by John Agnew and F. O. Fayerweather against the Board of Governors of the Federal Reserve System requesting a review of an order of the Board, issued pursuant to authority conferred by section 30 of the Banking Act of 1933, removing Messrs. Agnew and Fayerweather as directors of a national bank in Paterson, New Jersey. The removal order by the Board was predicated upon a finding that appellants had violated section 32 of the Banking Act of 1933, which prohibits any officer, director or employee of any company, partnership, or individual, primarily engaged in the business of underwriting securities, from serving at the same time as an officer, director or employee of any member bank of the Federal Reserve System. The appellants contended that the use of the words "primarily engaged" in section 32 limited its application to cases in which the underwriting business of the securities company is first in volume as compared with other businesses in which it is engaged and that, since this was not true of the securities company of which they were employees, the statute was not applicable to them. The Board challenged the appellants' interpretation of the law as set forth above and also challenged the jurisdiction of the court to entertain proceedings to review the Board's order, contending that a suit against the Board is in effect a suit against the United States which has not consented to be sued. A divided court reversed the decision of the District Court and rendered an opinion interpreting the words "primarily engaged" as applying only to a company the volume of whose underwriting business was greater than that of any other business conducted by it. In this case the Court pointed out that the volume of brokerage business conducted by appellants' employer exceeded its "underwriting" business. In a strong dissent, it was reasoned 251 LAW DEPARTMENT that the word "primarily" was used in a sense which includes "essentially" or "fundamentally" and not limited to "chiefly" or "principally." The majority opinion also found that the District Court did have jurisdiction of the case as it involved a suit to restrain an order which the Court considered beyond the power of the Board. Foreign F u n d s Control Treasury Regulations There is published below an amendment to the regulations of the Treasury Department relating to transfers of credit, foreign exchange transactions, the export or earmarking of coin, bullion or currency, or other similar operations, by persons or institutions in the United States which involve property of certain foreign countries or nationals thereof: Treasury Department Foreign Funds Control February 19, 1946 AMENDMENT OF REGULATIONS OF APRIL 1 0 , 1 9 4 0 , AS AMENDED, UNDER EXECUTIVE ORDER NO. 8 3 8 9 , AS AMENDED.* SECTION 130.3 of the Regulations under Executive Order No. 8389, as amended, is hereby amended to read as follows: SECTION 130.3. Licenses. (a) Applications for licenses to engage in any transaction referred to in Sections 1 or 2 of the Order shall be filed in duplicate with the Federal Reserve Bank or other agency designated in paragraph (b) of this section to receive such applications from the area in which the applicant resides or has his principal place of business or principal office or agency. If the applicant has no legal residence or principal place of business or principal office or agency in the United States, such applications shall be filed with the Federal Reserve Bank of New York or the Federal Reserve Bank of San Francisco. Application forms may be obtained from any agency designated in paragraph (b) of this section and from the Secretary of the Treasury, Washington, D. C. The applicant shall furnish such information as shall be requested of him by the Secretary of the Treasury or the Federal Reserve Bank or other agency with which the application is filed. Licenses will be issued by the Secretary of the Treasury, acting directly or through any officers or agencies that he may designate, and by the designated Federal Reserve Banks, acting in accordance with such regulations, rulings and instructions, as the Secretary of the Treasury may from time to time prescribe, in such cases or classes of cases as the Secretary of the Treasury may determine. The Federal Reserve Bank or other agency at which an application is filed will advise the applicant of the decision respecting the ap* Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; 55 Stat. 838; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, Ex. Order 8832, July 26, 1941, Ex. Order 8963, Dec. 9, 1941, and Ex. Order 8998, Dec. 26, 1941; Ex. Order 9193, July 6, 1942, as amended by Ex. Order 9567, June 8, 1945. 252 plication. Appropriate forms for applications and licenses will be prescribed by the Secretary of the Treasury. Licensees may be required to file reports upon the consummation of transactions. The decision of the Secretary of the Treasury with respect to an application for license shall be final. (b) (1) The Federal Reserve Bank of New York is designated to receive applications from the Federal Reserve Districts of New York, Boston, Philadelphia, Cleveland, Richmond and Atlanta, and from Puerto Rico; (2) The Federal Reserve Bank of Chicago is designated to receive applications from the Federal Reserve Districts of Chicago, St. Louis, Minneapolis, Kansas City and Dallas; (3) The Federal Reserve Bank of San Francisco is designated to receive applications from the Federal Reserve District of San Francisco; (4) Except as provided above with respect to Puerto Rico, the Governor or Foreign Funds Control office having jurisdiction is designated to receive applications from any territory or possession of the United States. FRED M. VINSON, Secretary of the Treasury. Treasury Department Releases The following releases relating to transactions in foreign exchange, etc., in addition to those heretofore published in the Federal Reserve BULLETIN, have been issued by the Office of the Secretary of the Treasury under authority of the Executive Order of April 10, 1940, as amended, and the Regulations issued pursuant thereto: Treasury Department Foreign Funds Control January 22, 1946 REVOCATION OF GENERAL RULING NO. 14 Under Executive Order No. 8389, as Amended, Executive Order No. 9193, as Amended, Sections 3(a) and 5(b) of the Trading With the Enemy Act, as Amended by the First War Powers Act, 1941, Relating to Foreign Funds Control** General Ruling No. 14, issued August 14, 1942, is hereby revoked. FRED M. VINSON, Secretary of the Treasury. Treasury Department Foreign Funds Control January 22, 1946 REVOCATION OF PUBLIC CIRCULARS NOS. 6, 7A, 9 AND 13 Under Executive Order No. 8389, as Amended, Executive Order No. 9193, as Amended, Sections 3(a) and 5(b) of **Sec. 3(a), 40 Stat. 412; Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; 55 Stat. 838; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, Ex. Order 8832, July 26, 1941, Ex. Order 8963, Dec. 9, 1941, and Ex. Order 8998, Dec. 26, 1941; Ex. Order 9193, July 6, 1942, as amended by Ex. Order 9567, June 8, 1945; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941. FEDERAL RESERVE BULLETIN LAW DEPARTMENT the Trading With the Enemy Act, as Amended by the First War Powers Act, 1941, Relating to Foreign Funds Control.* Public Circular No. 6, issued September 13, 1941, Public Circular No. 7A, issued November 6, 1942, Public Circular No. 9, issued December 24, 1941, and Public Circular No. 13, issued January 20, 1942, are hereby revoked. FRED M. VINSON, Secretary of the Treasury. Treasury Department Foreign Funds Control February 8, 1946 REVOCATION OF PUBLIC INTERPRETATIONS NOS. 9 AND 15 Under Executive Order No. 8389, as Amended, Executive Order No. 9193, as Amended, Sections 3(a) and 5(b) of the Trading With the Enemy Act, as Amended by the First War Powers Act, 1941, Relating to Foreign Funds Control. Public Interpretation No. 9, issued November 27, 1942, and Public Interpretation No. 15, issued June 1, 1944, are hereby revoked. ORVIS A. SCHMIDT, Director. Treasury Department Foreign Funds Control February 8, 1946 With the Enemy Act, as Amended by the First War Powers Act 1941, Relating to Foreign Funds Control.** Paragraph (4) (a) of General License No. 95 is hereby amended to read as follows: (a) the term "country specified herein" means the following: (i) France, effective October 5, 1945; (ii) Belgium, effective November 20, 1945; (iii) Norway, effective December 29, 1945; (iv) Finland, effective December 29, 1945; (v) The Netherlands, effective February 13, 1946; and each country specified herein shall be deemed to include any colony or other territory subject to its jurisdiction. FRED M. VINSON, Secretary of the Treasury. Treasury Department Foreign Funds Control February 19, 1946 GENERAL LICENSE NO. 74, AS AMENDED Under Executive Order No. 8389, as Amended, Executive Order No. 9193, as Amended, Section 5(b) of the Trading With the Enemy Act, as Amended by the First War Powers Act 1941, Relating to Foreign Funds Control.** General License No. 74 is hereby amended to read as follows: PUBLIC INTERPRETATION NO. 19 Under Executive Order No. 8389, as Amended, Executive Order No. 9193, as Amended, Sections 3(a) and 5(b) of the Trading With the Enemy Act, as Amended by the First War Powers Act, 1941, Relating to Foreign Funds Control. Inquiry has been made whether certification of property otherwise eligible under General License No. 95 is precluded by reason of any purported transfer to an enemy initiated or occurring in enemy-occupied territory. The Treasury Department has replied in the negative. In this respect attention was directed to the Declaration of January 5, 1943, regarding forced transfers of property in enemy-controlled territory, and Resolution No. VI of the United Nations Monetary and Financial Conference at Bretton Woods, New Hampshire, regarding enemy assets and looted property. ORVIS A. SCHMIDT, Director. Treasury Department Foreign Funds Control Certain United States Citizens Generally Licensed and Payments from Accounts of Certain Other Persons Authorized (1) Certain United States citizens licensed as generally licensed nationals. A general license is hereby granted licensing as a generally licensed national any citizen of the United States who is within any foreign country and who is a national of a blocked country solely by reason of having established residence in a blocked country subsequent to June 6, 1944. (2) Limited payments* from accounts of other United States citizens authorized. This general license also authorizes payments and transfers of credit from blocked accounts in the United States for expenditures within the United States or the Generally Licensed Trade Area, as defined in General License No. 53, of any citizen of the United States who is within any foreign country and who is not entitled to the benefits of paragraph (1) hereof, provided that the following terms and conditions are complied with: Under Executive Order No. 8389, as Amended, Executive Order No. 9193, as Amended, Section 5(b) of the Trading (a) Such payments and transfers are made only from blocked accounts in the name of, or in which the beneficial interest is held by, such citizen or his family; (b) The total of all such payments and transfers made under this general license does not exceed $1,000 * Sec. 3(a), 40 Stat. 412; Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; 55 Stat. 838; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, Ex. Order 8832, July 26, 1941, Ex. Order 8963, Dec. 9, 1941, and Ex. Order 8998, Dec. 26, 1941; Ex. Order 9193, July 6, 1942, as amended by Ex. Order 9567, June 8, 1945; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941. ** Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; 55 Stat. 838; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, Ex. Order 8832, July 26, 1941, Ex. Order 8963, Dec. 9. 1941, and Ex. Order 8998, Dec. 26, 1941; Ex. Order 9193, July 6, 1942, as amended by Ex. Order 9567, June 8, 1945; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941. February 13, 1946 AMENDMENT TO GENERAL LICENSE NO. 95 MARCH 1946 253 LAW DEPARTMENT in any one calendar month for any such citizen or his family. (3) Limited payments from other blocked accounts authorized. This general license further authorizes payments and transfers of credit from blocked accounts in the United States for expenditures within the United States or the Generally Licensed Trade Area, as defined in General License No. 53, of any person who is not within enemy territory, as defined in General Ruling No. 11, provided that: (a) Such payments and transfers are made only from blocked accounts in the name of, or in which the beneficial interest is held by, such person; 254 (b) The total of all such payments and transfers made under this general license does not exceed $250 in any one calendar month from any such blocked account (4) Certain transactions not authorized. This general license shall not be deemed to authorize any remittance to any blocked country or, except as expressly authorized above > any o t h e r Payment, transfer, or withdrawal which could not be effected without a license by a person within the United States who is not a national of any blocked country. FRED M. VINSON, Secretary of the Treasury. FEDERAL RESERVE BULLETIN CURRENT EVENTS Federal Reserve Meetings The Federal Advisory Council met in Washington on February 17-18. The annual organization meeting of the Council was held on February 17, at which Edward E. Brown, Chairman of the First National Bank of Chicago, was re-elected President, C. E. Spencer, Jr., President of the First National Bank of Boston, was re-elected Vice President, Walter Lichtenstein was reappointed Secretary, and Herbert V. Prochnow was appointed Acting Secretary. The Council met with the Board of Governors of the Federal Reserve System on February 18. A meeting of the Presidents of the Federal Reserve Banks was held February 25-26, and on February 28 the Presidents met with the Board of Governors. On February 28 and March 1 meetings of the Federal Open Market Committee were held. At the meeting on March 1 Marriner S. Eccles was re-elected as Chairman of the Committee and Allan Sproul as Vice Chairman. The representative members of the Committee elected by the Federal Reserve Banks for the period of one year, beginning March 1, 1946, are Allan Sproul, Hugh Leach, C. S. Young, W. S. McLarin, Jr., and Ira Clerk, Presidents of the Federal Reserve Banks of New York, Richmond, Chicago, Atlanta and San Francisco, respectively. The members of the executive committee are Marriner S. Eccles, Chairman; Allan Sproul, Vice Chairman; Ernest G. Draper; R. M. Evans; and Hugh Leach. Appointments of Presidents and First Vice Presidents of Federal Reserve Banks The Board of Governors has approved the appointments by the respective boards of directors of the Federal Reserve Banks of the following Presidents and First Vice Presidents of the Banks each for the term of five years beginning March 1, 1946. These appointments were made by the boards of directors and approved by the Board of Governors pursuant to the provisions of paragraph 4 of section 4 of the Federal Reserve Act as amended: MARCH 1946 Federal Reserve Bank Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco President First Vice President Laurence F. Whittemore Allan Sproul Alfred H. Williams Ray M. Gidney Hugh Leach W. S. McLarin, Jr. C. S. Young Chester C. Davis J. N. Peyton H. G. Leedy R. R. Gilbert Ira Clerk William Willett L. R. Rounds W. J. Davis Wm. H. Fletcher J. S. Walden, Jr. Malcolm H. Bryan Charles B. Dunn F. Guy Hitt O. S. Powell Henry O. Koppang W. D. Gentry C. E. Earhart All of the above represent reappointments except in the case of Mr. Whittemore at Boston and Mr. Davis at Philadelphia. Mr. Whittemore, formerly Assistant to President of Boston and Maine Railroad and a Class B director of the Federal Reserve Bank of Boston, succeeded Mr. Ralph E. Flanders, who had reached retirement age under the Federal Reserve System. Mr. Whittemore resigned as Class B Director of the Bank effective February 28, 1946. Mr. Flanders has been appointed Consultant to the Board of Directors and will thus continue his connection with the Bank. Mr. Davis, who had been an officer of the Federal Reserve Bank of Philadelphia since 1917 and a Vice President since 1936, succeeded Mr. Drinnen who had resigned as First Vice President effective February 28, 1946. Mr. Drinnen had been associated with the Federal Reserve System since 1919, when he joined the examining staff of the Federal Reserve Board. In 1936 he was appointed First Vice President of the Federal Reserve Bank of Philadelphia and served two terms of five years each in that position. Appointment of Branch Directors The Board of Governors of the Federal Reserve System on February 15, 1946, announced the appointment of Mr. H. C. Meacham of Franklin, Tennessee as a director of the Nashville Branch of the Federal Reserve Bank of Atlanta for the unexpired portion of the term ending December 31, 1948. Mr. Meacham is engaged in farming. On March 7, 1946, the Federal Reserve Bank of San Francisco appointed Mr. E. B. MacNaughton, President, The First National Bank of Portland, Portland, Oregon, a director of the Portland Branch 255 CURRENT EVENTS for the unexpired portion of the term ending December 31, 1947, to succeed Mr. Chas. H. Stewart, who was elected a Class A Director of the Federal Reserve Bank of San Francisco. Mr. MacNaughton formerly served as a director of the Portland Branch from January 1, 1936, to December 31, 1941. The Board of Governors of the Federal Reserve System on March 8, 1946, announced the appointment of Mr. John T. Tenneson, President, Superior Packing Company, Seattle, Washington, as a director of the Seattle Branch of the Federal Reserve Bank of San Francisco for the unexpired portion of the term ending December 31, 1947. Elections of Class A and B Directors The Federal Reserve Bank of San Francisco on February 16, 1946, announced the election of Mr. Chas. H. Stewart, President, Portland Trust and Savings Bank, Portland, Oregon, as a Class A Director to fill the unexpired portion of the term ending December 31, 1947. Mr. Stewart succeeds Mr. Richard Shore Smith, who resigned. Mr. Stewart had served as a director of the Portland Branch of the Federal Reserve Bank of San Francisco from June 7, 1945, to February 16, 1946, when he resigned in order to serve as a Class A Director of the Federal Reserve Bank of San Francisco. On February 16, 1946, the Federal Reserve Bank of San Francisco also announced the election of Mr. Walter S. Johnson, President, American Box Corporation of California, San Francisco, California, as a Class B Director to fill the unexpired portion of the term ending December 31, 1946. Mr. Johnson succeeds Mr. Elmer H. Cox, deceased. Resignation of Class B Director Mr. E. L. Kurth, President and General Manager, Angelina County Lumber Company, Keltys, Texas, who had served as a Class B Director of the 256 Federal Reserve Bank of Dallas since September 14, 1940, resigned on February 14, 1946. Death of Director Mr. Fitzgerald Hall, President, Nashville, Chattanooga, and St. Louis Railway, Nashville, Tennessee, who had served as a director of the Nashville Branch of the.Federal Reserve Bank of Atlanta from February 28, 1935 to December 31, 1937, and as a Class B Director of the Federal Reserve Bank of Atlanta since February 25, 1935, died on February 7, 1946. Changes in the Board's Staff Mr. Walter Wyatt, who had been a member of the Board's staff since 1917, and its General Counsel since 1922, resigned effective February 28, 1946, to accept the position of Reporter of Decisions for the Supreme Court of the United States, effective March 1, 1946. Effective March 1, 1946, the designation of Mr. George B. Vest has been changed from General Attorney to General Counsel, and that of Mr. J. Leonard Townsend from Assistant General Attorney to Assistant General Counsel. Admissions of State Banks to Membership in the Federal Reserve System The following State banks were admitted to membership in the Federal Reserve System during the period January 16, 1946, to February 15, 1946: Florida Tampa—First Savings & Trust Company of Tampa Indiana Dillsboro—Dillsboro State Bank Minnesota Anoka—State Bank of Anoka Texas Odem—First State Bank of Odem FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS MONETARY AND BANKING REFORM IN GUATEMALA The Republic o£ Guatemala has recently adopted new monetary and central banking legislation which marks a considerable departure from traditional patterns. While this legislation is intended primarily to meet the problems confronting a small, agricultural country, dependent on a very few exports subject to wide fluctuations of an accidental or cyclical character, it also provides for a number of novel monetary and central banking techniques of broader applicability. Attention is drawn to these in the discussion which follows. Monetary legislation. The new monetary legislation embraces a basic system, supplemented and qualified by emergency provisions to be applied only in cases of extreme shortage of international reserves. The features of the permanent part of the law which are probably of greatest interest are the following: 1. Unification of monetary responsibility, for subsidiary coinage as well as for notes, under a single authority (Article 4); 2. Provisions for changes in the parity of the currency in the case of fundamental external disequilibria in the economy of the country, and in accordance with the International Monetary Fund Agreement (Article 14); 3. Sterilization of revaluation profits and losses in mere bookeeping accounts, in order to remove a strong bias toward currency depreciation, and to prevent the development of automatic domestic expansionary or deflationary pressures from a mere change in currency parity (Article 17 of the Monetary Law and Articles 12 and 13 of the Central Banking Law); 4. Extension of the same principle to the commercial banks, in order to strengthen their position and discourage interest on their part in exchange speculation (Article 32); 5. Translation into concrete operational terms of the obligation assumed by the country, under Article IV, Sections 2 and 3, of the International Monetary Fund Agreement, to base gold and foreign exchange transactions on the par value of the currency (Articles 19-34). MARCH 1946 The emergency system of international transfers permits the application of some exchange restrictions, but only under concretely defined conditions (Articles 38-41), for strictly monetary purposes, and in nondiscriminatory forms preserving to a large extent the essential and automatic features of a free exchange market. Full exchange freedom and stability are maintained for all essential transactions, and the limitations on other transactions are made to result from the free interplay of supply and demand rather than from rigid and arbitrary allocation of individual exchange permits. Finally, the whole system of restrictions is made self-liquidating, assuring the automatic relaxation and removal of the controls as the need for them decreases or disappears. Special attention might be given by the reader to Articles 38, 53-56, 62-67 and 70-79.1 Central banking legislation. Salient characteristics of the central banking legislation may be summarized as follows: 1. Broad definition of the objectives of central banking policy, distinguishing between domestic and international aims (Articles 2-4); 2. Guidance of monetary policy primarily by analysis of domestic developments, rather than in automatic response to changes in international reserves (Article 97); 3. Determination of open market powers and policies based on domestic requirements for monetary stability,2 provided that international reserves are adequate to meet external pressures; if international reserves are inadequate, reconsideration either of domestic policies or of the external parity of the currency (Articles 107-108); 1 The reasons supporting recourse to exchange restrictions in specific cases of temporary shortages of exchange, and for setting up the type of controls embodied in the Guatemalan legislation, would require a detailed analysis which can not be presented here. A paper by Robert Triffin entitled "National Central Banking and the International Economy," and dealing with this problem, will be published later in the year by the Board of Governors of the Federal Reserve System, in The United States in World Trade and Finance (No. 7 of the series Postwar Economic Studies). 2 This would also have the result of facilitating central bank financing of Government expenditures in times of depression, while making similar operations more difficult in times of prosperity and monetary expansion. Such a criterion would appear far easier to observe and enforce, as well as more in keeping with modern monetary and economic theory, than the traditional provisions limiting governmental borrowings to a certain percentage of the Bank's capital and surplus, or to other similarly arbitrary and irrelevant criteria. 257 FOREIGN BANKING LAWS AND REPORTS 4. Introduction of a "net international reserves concept" (Article 74); and investment of international reserves designed to assure the prompt availability of any amount needed to finance deficits in the balance of payments while still providing the Bank, especially at times when anti-inflationary action is necessary, with sources of earning power other than domestic credit expansion (Articles 76-78); 5. Definition of a "critical" level of reserves, related to balance of payments needs, rather than to domestic note issue or sight obligations, and avoidance of any rigid requirement which would make reserves unavailable in times of need (Articles 77, 83, 84, and 107); 6. Distinction between temporary disequilibria in the balance of payments calling for compensatory action, and fundamental disequilibria calling for corrective action (Articles 83-84); 7. Creation of an independent Monetary Board, in close coordination with the Ministries responsible for the formulation of governmental economic and financial policies, and endowed with policy making functions rather than with detailed responsibilities for individual operations (Articles 15, 18, 24, 26, 31 and 90-92); and corresponding decentralization of operating responsibilities (Articles 32-35, 38-40, 43-44, 53-55 and 90-92); 8. Integration of policies relating to money, credit (including bank supervision), and exchange (including the administration of emergency restrictions) under the authority and responsibility of the Monetary Board (Article 30); and coordination of official and semi-official borrowings with monetary policy (Article 123); 9. Broad techniques of monetary control (Article 98, with references to other articles mentioned); 10. Broad and flexible provisions with relation to reserve requirements, and power to apply special reserve requirements against growth in aggregate deposits (Articles 63-64); 11. Provision for the issue by the Bank of "Stabilization Bonds," designed to withdraw excess cash temporarily from the market, in times of inflationary pressure (Article 105); 12. Capital requirements varying in relation to risk-assets of the Bank, all excess profits to accrue to a Fund for the Regulation of the Official Bond Market (Articles 10-11); 13. Development of a Government bond market 258 through the operations of a special Fund for the Regulation of the Official Bond Market (Articles 112-115); 14. Management of official accounts with a view to reinforcing monetary stabilization policies (Article 118); 15. Liberalization of rediscounting rules from strict, and highly controversial, "commercial loan theory" criteria, in order to permit greater flexibility in the discharge of the Bank's responsibility as "lender of last resort" (Articles 85-94). Complementary legislation. The monetary and central banking legislation is only the first step in a comprehensive financial reform, designed to promote credit facilities for economic development as well as to achieve a greater degree of monetary stability. Of primary concern to the Government is the reconstruction of an efficient system of private banking. With a single exception, all private banking institutions disappeared during the thirties, as a result of former excesses and of the policies of the Ubico regime. Measures now under consideration would revive a dormant institution, the Occidental Bank, and eliminate governmental participation in a hybrid institution, previously devoted to central banking activities together with commercial and mortgage lending. A general banking law, shortly to be introduced before the Guatemalan Congress, will modernize and simplify the cumbersome and vexatious provisions of the present banking statutes, while adapting them to the prerequisites of efficient monetary and credit policy. Four additional financial institutions, three of which already exist in embryonic form, will complete the proposed financial reorganization. While fully independent in the conduct of individual operations, all these institutions will be subordinated to the Monetary Board in so far as necessary to coordinate their activities, and to assure the efficient integration of their lending policies into the framework of the general monetary policy of the country. 1. An Agricultural -Industrial Ban\, devoted mostly to medium- and long-term loans, and designed, not only to assure the availability of credit for production and economic development, but also to permit the Monetary Board direct intervention on the credit market for purposes of monetary control. Owing to the relatively undeveloped financial structure of Guatemala, the central bank itself could FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS not be effective if it remained a pure bankers' bank, entirely dependent on private institutions for the transmission of its policies to the market. 2. A Capitalization and Insurance Institute, which will issue insurance and savings policies and administer the funds originating in social security legislation. The Institute will not lend directly to the public, except in some special and unimportant cases, but will invest its funds through the other banks, both public and private, and particularly through the purchase of medium- and long-term paper issued by the Agricultural-Industrial Bank. 3. An Agricultural Development Institute, which will make small loans for rehabilitation purposes, organize agricultural cooperatives, provide technical assistance to farmers, sell equipment, seeds and farm implements on a low-cost basis, establish warehouses, and, in time, assist in programs for stabilizing farm prices. Its loans may be rediscounted by the Agricultural-Industrial Bank, but its other activities will be financed by the State, which will also contribute the capital for the institution. 4. An Industrial Development Institute, which will acquire shares in new agricultural or manufacturing industries. These shares cannot exceed one-third of the capital of the industries that are financed, and the Institute must sell its holdings as quickly as the market permits. The Institute will derive its resources from the sale of shares to the Government (one-third) and to the public (twothirds). The Institute will probably be guided at the outset by a program for economic development now under study with the cooperation of the Inter-American Development Commission, but is expected to develop progressively a specialized research stafl of its own, in order to orient its investment policy. The official text of the monetary and central banking laws, as translated from the Diario de Centro America (Guatemala City, December 17, 1945 and lanuary 25, 1946), is given below.3 Decree Number 203 The Congress of the Republic of Guatemala, considering: 8 The new legislation was prepared in the Consejo de Economia, at the initiative and under the leadership of the Minister of Economy, Manuel Noriega Morales. At the request of the Minister, transmitted to the Board of Governors of the Federal Reserve System through the Department of State and the Inter-American Development Commission, two members of the Board's staff, Dr. Robert Triffin and Mr. David L. Grove, helped the Guatemalan authorities in the technical preparation and formulation of the projects. MARCH 1946 That the existing laws of the Republic in the monetary field are technically deficient and do not correspond to modern scientific analysis, and that in consequence it becomes necessary to issue new legislation; For that reason, Decrees: the following Monetary Law First Part The National Monetary System Chapter I The Monetary Unit The monetary unit—Art. 1. The monetary unit of Guatemala is the "Quetzal". The quetzal is divided into 100 equal parts called "centavos". The monetary symbol of the quetzal is represented by the letter $• Art. 2. All prices, taxes, assessments, fees, wages, salaries, commissions, premiums, interests, dividends, rents, contracts and obligations of any class or kind, that must be paid, collected, received or executed in the Republic, shall be expressed and liquidated exclusively in quetzales. Any qualifying or restrictive clause that imposes obligations in silver or gold metal, in foreign currencies, or in any monetary unit other than the quetzal, shall be null and void. Nevertheless, this nullity shall not invalidate the principal contract, when the latter may be reinterpretated in terms of the national monetary unit, in which case the respective obligations shall be liquidated in quetzales; the conversion shall be effected on the basis of the legal parities corresponding either to the time of the consummation of the contract or to the time of payment, whichever is more favorable to the debtor. Art. 3. Only the following are excepted from the foregoing limitation: a) Obligations that establish payments from Guatemala to foreign countries or from foreign countries to Guatemala, and obligations directly related to the financing of same; b) Remunerations to persons or entities actually domiciled outside the Republic, for temporary services rendered to persons or entities of the country; c) Remunerations and expenses of foreign diplomatic agents and career consuls in Guatemala; d) Obligations contracted in favor of institutions of public law which, in application of special laws, must be paid either in specie or in foreign currencies; e) Securities issued either by the Government 259 FOREIGN. BANKING LAWS AND REPORTS of the Republic, with previous authorization of Congress, or by the Bank of Guatemala, with previous authorization of the Monetary Board, provided that it be required by monetary policy in the interest of the country; f) Deposits in foreign moneys, held in local banks in accordance with the general regulations which the Monetary Board may issue on the matter with the approval of the Executive Power; and, g) Minor transactions effected by tourists and travellers, which shall be subject to the regulations to be issued by the Monetary Board, with the approval of the Executive Power, in order to avoid the effective circulation of foreign moneys in the territory of the Republic. tions it shall present to the Congress of the Republic duly supported proposals to determine or modify the characteristics and denominations of metal coins. The printing of notes and the minting of divisionary coins shall be made exclusively in the amounts and conditions ordered by the Monetary Board, and only in the institutions, firms or minting houses contracted for the purpose by the same Board. Illegal issues—Art. 7. Any printing of notes or minting of coins in forms or amounts not ordered by the Monetary Board shall make those who have ordered or executed them liable to the responsibilities and penalties prescribed in the Penal Code. Legal tender—Art. 8. The notes and coins issued by the Bank of Guatemala shall have unlimited Chapter II circulation and legal tender throughout the naThe Monetary Issue tional territory. Interconvertibility—Art. 9. The Bank of GuateIssue power—Art. 4. Only the Bank of Guate- mala shall exchange, on demand and without any mala may issue notes and coins in the territory of charge, national notes and coins of any denomithe Republic, with the guarantees and limitations nation for national notes and coins of any other deestablished in this law and in the Organic Law of nomination. If for unforeseen reasons the Bank the Bank of Guatemala. should be temporarily unable to provide notes or No other person or entity, public or private, may coins of the denominations requested, it shall put into circulation notes, coins or any other objects comply with this obligation by delivering notes or documents which, in the opinion of the Mone- or coins of the denominations which most approxitary Board, might circulate as money. mate those solicited. Any issues which violate this provision shall be Demonetization—Art. 10. The Bank of Guatenull and fraudulent. mala shall replace by new national notes or coins Illegal circulation—Art. 5. Any person, other the notes and coins so deteriorated through normal than the Bank of Guatemala, which circulates use that they have become inadequate for monetary notes, certificates, promissory notes or other docu- circulation. Nevertheless, the Bank shall not be ments containing promise to pay in cash, to the obligated to exchange notes whose identification has bearer and at sight, or tokens, cards, pieces of become impossible nor those which have lost more paper or other objects, with the purpose of having than two-fifths of their surface. Nor shall it be them used as money, shall be punished, according to obligated to replace coins which cannot be identified the case, with the penalties provided for in the Penal or which show traces of filing, clipping or perforaCode. tion. Such notes and coins shall be demonetized Monetary characteristics—Art. 6. The notes shall and withdrawn from circulation without compenhave the denominations, dimensions, designs, leg- sation. ends and other characteristics which the Monetary Art. 11. The Bank of Guatemala may call in for Board determines, and shall bear the signatures, in replacement the notes of any series or denominafacsimile, of the President and Manager of the tion which are more than 10 years old and the coins Bank of Guatemala and of the President of the which are more than 20. Court of Accounts. The denominations of the The notes and coins called in for replacement, in notes shall not be less than one-half a quetzal. accordance with this provision, shall remain legal Metallic coins shall have the weight, type, fineness, engravings and denominations determined by tender for a period of one year calculated from the Congress of the Republic in accordance with the date at which they are called in. After this Article 119, clause 8, of the Constitution. To that period these notes and coins shall cease to be legal end, the Monetary Board shall make to the Ministry tender and shall only be exchanged during the subof Economy the recommendations which it deems sequent year, at par and without charges of any pertinent in view of the availability of the metals, kind, in the Bank of Guatemala and in the other their market price and the mint techniques. If the banking institutions qualified for that purpose Ministry of Economy approves such recommenda- by the Monetary Board. When this second period 260 FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS is over, the notes and coins which have not been exchanged shall lose their value and be demonetized. The Bank of Guatemala may not return to circulation the notes and coins retired in conformity with the present and the previous articles. Issue costs and profits—Art. 12. All costs of printing, minting and replacing currency and coin shall be for the account of the Bank of Guatemala. The amount of demonstrated decreases in the issues of notes and coin outstanding, due to loss, destruction or demonetization, shall be applied to the purposes determined in the Organic Law of the Bank of Guatemala. Chapter III The Gold Parity of the Currency Gold parity—Art. 13. The gold parity of the quetzal is defined as fifteen and five/twenty-firsts (15-5/21) grains of gold, nine-tenths (9/10) fine, equivalent to eight hundred and eighty-eight thousand, six hundred and seventy millionths (0.888,670) of a gram of fine gold. Modification of parity—Art. 14. The gold parity of the quetzal may be modified only in the following cases: a) In application of decisions emanating from international conventions on monetary stabilization, subscribed to and ratified by the Republic; b) To counteract the harmful effects of fluctuations of major amplitude in the gold prices of the articles which most affect the economy of the country; or, c) To correct fundamental and persistent disequilibria in the balance of payments, related to disparities between internal and external price and cost levels. Art. 15. The modifications in the gold parity of the quetzal, by reason of any of the imperative circumstances expressed in the preceding article, may be decreed only by the Congress of the Republic, upon proposal of the Executive Power. Art. 16. Any modification in the gold parity of the quetzal shall be adjusted to the international obligations duly accepted by the Republic. On the date of publication of the legislative decree ordering the modification, there shall also be published in the official gazette the reports which served as a basis for the adoption of the decree. Revaluation profits and losses—Art. 17. Profits or losses arising from any revaluation of the gold or foreign exchange assets and liabilities of the Bank of Guatemala, as a consequence of future movements in the gold parity of the quetzal and MARCH 1946 of the other currencies, shall be sterilized immediately in accordance with the system established in the Organic Law of the Bank of Guatemala. Parity of foreign currencies—Art. 18. The legal exchange parities of foreign currencies with relation to the quetzal shall be determined in accordance with the following bases: a) In the case of foreign currencies freely and effectively convertible either in gold or in currencies convertible in gold, the parity shall be calculated on the basis of the gold equivalent of these currencies; and, b) In all other cases, the parity shall be calculated on the basis of the respective current quotations in the New York or London market. The Monetary Board shall determine and publish the legal exchange parities of the foreign currencies which are of greatest importance in the international transactions of the country. Whenever doubts occur concerning the legal exchange parity of currencies not included in these official publications, the same Board shall certify the respective legal parity, at the request of any interested party. The parities published or certified by the Monetary Board shall have force of law and carry full evidence in justice. Chapter IV The External Convertibility of the Currency Free convertibility—Art. 19. The Monetary Board must assure free convertibility between the quetzal and foreign currencies, in accordance with the provisions of this chapter and with the treaties and conventions of monetary stabilization subscribed to and ratified by the Republic. Negotiation of gold and foreign exchange—Art. 20. Only the Bank of Guatemala may negotiate coined gold, gold bars and foreign exchange in the territory of the Republic with any nonbanking person or entity. The Bank of Guatemala shall effectuate the negotiation of foreign exchange through the medium of the banks contracted and qualified for the purpose by the Monetary Board. The negotiation of gold metal shall take place either directly or through the medium of the same qualified banks. In consequence, nonbanking persons or entities which hold, or come to hold, coined gold, gold bars or foreign exchange, may not negotiate them except with the Bank of Guatemala or the banks qualified by the Bank of Guatemala in accordance with the provisions of the previous paragraph. Only the following are excepted: 261 FOREIGN BANKING LAWS AND REPORTS a) Operations transacted by foreign diplomatic agents and career consuls in Guatemala, in the performance of their official functions; and, b) Minor exchange transactions of tourists and travellers, which shall be subjected to the regulations to be issued by the Monetary Board with the approval of the Executive Power. shall include the margin corresponding to banking commissions and surcharges and, consequently, these rates shall be understood to be net and free of any commission or surcharge for the buyers and sellers. Art. 25. Other exchange operations, such as the purchase and sale of time bills, telegraphic or cable Penalties—Art. 21. Those who negotiate coined transfers, foreign notes and coin, and other intergold or gold bars and foreign exchange, in violation national transfers, shall be made at the rates menof the provisions of the preceding article, shall be tioned in the preceding article, but the banks may punished by the Ministry of Economy, upon request charge their clients the additional costs involved or hearing of the Bank of Guatemala, with fines in the transaction, such as telegraphic or cable rates up to an amount equivalent to three times the im- and the interest applicable to the operation, inport of the illegal transactions, and, depending on cluding interest on documents in transit. Exchange procedures—Art. 26. The qualified the gravity of the violation, with the suspension or banks shall effectuate all purchases and sales of cancellation of their commercial licenses. Buying and selling of gold—Art. 22. The Bank gold and foreign exchange for the exclusive acof Guatemala shall be obligated to buy any gold count of the "Monetary Stabilization Fund" which metal which is offered to it, either directly or the Bank of Guatemala must maintain in conformthrough the medium of the banks contracted and ity with the Organic Law of that institution. In consequence, the banks shall be allowed to qualified for the purpose by the Monetary Board. The Bank shall also be empowered to require any transfer at any time to the Bank of Guatemala the person or entity which possesses coined gold or gold gold and foreign exchange which they buy; and, bars to deliver it either to itself or to any of the in its turn, the Bank of Guatemala shall be allowed qualified banks, against payment of its equivalent to require the banks, at any time to transfer to it the gold and exchange which they have bought. in national currency. The Monetary Board may, in either case, require The Bank of Guatemala shall supply the demand of gold metal for artistic or industrial purposes, in that the transfers be made in telegraphic or cable conformity with the regulations to be dictated on form; in the case of time bills and of future exthe matter by the Monetary Board with the approval change, the Board may grant the banks the brief delays which it deems advisable for the carrying of the Executive Power. Such purchases and sales shall be made at the out of the respective transfers. Art. 27. The Monetary Board may regulate, at rates and commissions mentioned in Article 24 of any time, the purchase and sale of time bills and of this law. Buying and selling of foreign exchange—Art. 23. future exchange by the qualified banks, so as to The Bank of Guatemala shall be obliged to meet, avoid the taking of speculative risks on future through the medium of the banks contracted and fluctuations in international exchange. Art. 28. In order to facilitate daily exchange qualified for the purpose by the Monetary Board, any offer of or demand for, the currencies of the operations, the Monetary Board shall authorize the principal countries of importance in the balance of banks to retain, totally or partially, the exchange payments of the country, as long as such currencies bought from their clients, and to sell drafts against such exchange, provided that the total holdings of are freely utilizable in the international market. Such purchases and sales shall be made at the exchange do not exceed the maximum amounts rates and commissions mentioned in Articles 24 and which the Board shall determine with relation to 25 of this law. The Monetary Board may deter- the average of their sales of exchange during the mine the procedure which shall apply to the ac- preceding 12 months. Nevertheless, the total quisition of currencies not freely utilizable in the amount of such holdings of exchange by any bank international market, and the manner of their shall never be permitted to exceed 25 per cent of liquidation when their conversion in other free the bank's paid-in capital and surplus. currencies is not possible. The foreign exchange assets maintained by the Rates of exchange—Art. 24. The buying and banks against their foreign exchange liabilities shall selling rates of drafts and sight bills in the banks not be taken into account in the calculation of the shall be determined by the Monetary Board and limits mentioned in this article. may not differ by more than one per cent from the Art. 29. When the exchange retained by a bank legal parities established in Article 18 of this law. is insufficient to handle effectively its sales of foreign The rates determined by the Monetary Board exchange, the Bank of Guatemala shall transfer to 262 FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS the bank, at its request, the amounts needed for that purpose. Art. 30. Transfers of exchange from the Bank of Guatemala to the banks, and from these to the Bank of Guatemala, shall be made at the rates determined by the Monetary Board. Such rates shall not differ by more than one-half of one per cent, in either direction, from the legal parities. Nevertheless, there may be charged in addition the costs mentioned in Article 25, in case they should be applicable. Ris\s—Art. 31. The following risks shall be borne by the authorized banks: cally about the movement of all their foreign exchange accounts, whether they be held for the banks themselves or for their respective clients. The Bank of Guatemala shall be empowered to control the accuracy of the reports mentioned in this article, through whatever inspections it deems necessary. Chapter V Statistical Control Purpose—Art. 35. The Monetary Board shall establish a system of statistical control of transactions involving transfers of funds abroad from a) The risk of noncompliance of bills purchased Guatemala and from abroad to Guatemala, with the and of future exchange contracts; purpose of preparing estimates of the balance of b) The risk of nonreimbursement of foreign ex- payments of the country. change deposits by the banks' correspondents; and, Regulation—Art. 36. The system of statistical c) Any other risks of a typically commercial or control shall be established through regulations banking character. issued by the Monetary Board and approved by the Executive Power. On the other hand, the risk of modifications in These regulations shall determine penalties for the legal parity of the foreign currencies, or of those who violate the provisions relative to the fluctuations in their daily exchange quotations, shall statistical control. Such penalties may consist of not concern the banks in any way, provided that fines up to 50 per cent of the amounts concealed they maintain their total holdings within the limits or altered and, depending on the gravity of the determined by the Monetary Board. These risks, violation, of suspension of the commercial licenses. whether of profit or of loss, shall be borne by the These penalties shall be applied by the Ministry Bank of Guatemala. of Economy upon request of the Bank of Guatemala. Exchange profits and losses—Art. 32. The profits or losses occasioned by modifications in the legal Second Part parity of foreign currencies shall be entered in the books of the Bank of Guatemala in accordance with Emergency Regulation of International Transfers the special system established in the Organic Law of that institution. Profits and losses arising from Chapter VI fluctuations in the daily exchange quotations shall be credited or debited to the profit and loss account Establishment and Purpose of the Emergency of the Bank of Guatemala. System Art. 33. When the differences between the buySystem of exchange restrictions—Art. 37. The ing and selling rates applying to operations between second part of this law, starting with the present the banks and the public, and the buying and selling rates applying to operations between the Bank of chapter, establishes an Emergency System of interGuatemala and the banks, exceed the amount neces- national transfers, which limits the application of sary to defray the normal costs and profits of the the provisions of Chapter IV relative to the free banks on their exchange operations, exclusive of the external convertibility of the national currency. This system may be applied only in periods of costs which they may charge to their clients in aceconomic emergency, the existence of which shall cordance with Article 25, the excess profits shall belong to the Bank of Guatemala and shall be be decreed in the form and conditions provided for in this same law. transferred to it monthly by the banks. Establishment of exchange restrictions—Art. 38. The Monetary Board shall determine the maxiThe Emergency System of international transfers mum amounts of costs and commissions which may may be put into effect by decree of the President of be retained by the banks. Information—Art. 34. The qualified banks must the Republic in Council of Ministers, upon request report daily to the Bank of Guatemala all exchange of the Monetary Board, and only in the following cases: operations which they have transacted. a) In application of decisions or recommendaThe Monetary Board may, in addition, require the banks to inform the Bank of Guatemala periodi- tions emanating from international conventions on MARCH 1946 263 FOREIGN BANKING LAWS AND REPORTS monetary stabilization, subscribed to and ratified by the Republic; and, b) In order to maintain the stability of the currency in periods of temporary disequilibria in the balance of payments: i) which have reduced the net reserves of the Monetary Stabilization Fund to less than 40 per cent of the annual average of total sales of exchange during the three preceding years; or, ii) which currently produce a persistent draining of such reserves at a rate greater than 25 per cent annually and not attributable to seasonal or transitory factors. Art. 39. The Monetary Board may exclude from the calculation of the reserves in the Monetary Stabilization Fund, holdings of blocked, or not freely usable, currencies; but in this case the Board shall be obliged to exclude simultaneously the sales of such currencies from the calculation of the average of total sales in the preceding three years, when establishing the proportion between reserves and sales of exchange for the purposes mentioned in this law. Art. 40. Similarly, the exchange restrictions provided for in this law for the Emergency System, or other restrictions which the International Monetary Fund may recommend, may be put into force at any time by decree of the President of the Republic, issued in the manner prescribed in Article 38, in any one of the following cases: a) For the sale of currencies declared scarce by the International Monetary Fund; b) For the sale of currencies the net holdings of which in the Bank of Guatemala have been reduced to less than 40 per cent of the average sales of such currencies during the three preceding years, or have fallen by more than 25 per cent of their previous level within a period of 12 months; provided that in either case the currencies in question cannot be procured by the Bank of Guatemala through the normal conversion into such currencies of other international reserves at the disposal of the Bank; and, c) In application of special decisions or recommendations of the International Monetary Fund. law. Their use is especially prohibited as a permanent measure tending to elude fundamental economic readjustments required by lasting changes in the comparative levels of prices and costs of production at home and abroad. Art. 43. The application and administration of exchange restrictions shall conform to the international treaties and conventions subscribed to and ratified by the Republic and shall avoid: a) Any discriminatory measures prejudicial to the good economic and political relations of Guatemala with foreign nations; and, b) Any action prejudicial to the permanent interests of the Nation in the development of international trade and cooperation. These restrictions do not refer to legitimate differentiations in the treatment of distinct categories of merchandise, services and capital movements, on generally accepted bases; nor to inevitable discriminations necessary to defend the monetary structure of the Republic against the consequences resulting from previous action by other countries; nor to the measures necessary for the defense of the national economy. Administration—Art. 44. The Emergency System of international transfers shall be administered by the Exchange Department of the Bank of Guatemala, in conformity with the regulations issued by the Monetary Board with the approval of the Executive Power. The Monetary Board shall be in charge of the general direction of the Exchange Department, and shall decide all appeals against decisions of the same Department, whether executive or interpretative in nature. Enforcement—Art. 45. Custom houses and postal offices must collaborate with the Bank of Guatemala to assure the efficient enforcement of the Emergency System of international transfers. Before authorizing the dispatch of import or export merchandise, they shall require proof of the declarations relating to the operation, as well as the documents corresponding to the acquisition or negotiation of the respective foreign exchange. Similarly, they must forward periodically to the Art. 41. All decrees of the Executive Power Exchange Department statistical records of merwhich establish exchange restrictions, in the cases chandise dispatched and other data related to the provided for in this second part of the law, shall be control. subject to the requirements established in Article 16 The Monetary Board, with the approval of the of this same law. Ministry of Finance, shall regulate the provisions of Purposes—Art. 42. The exchange restrictions au- this article, and shall be empowered to establish thorized by the Emergency System may not be a special system for imports and exports under applied for purposes alien to those specified in the consignment. 264 FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS Chapter VII Concentration of International Reserves Declarations—Art. 46. All persons or entities which possess or come into possession of foreign currencies or coin, or deposits in such currencies, either in the country or abroad, shall be obliged to declare their amount to the Exchange Department of the Bank of Guatemala or to any of the banks qualified by the Monetary Board. These declarations shall be made within the 10 days following the respective acquisition, and shall be considered strictly confidential. The Monetary Board may exempt from this obligation holdings of foreign exchange in minor amounts, determining the limits of such exemptions in accordance with circumstances at the time. Art. 47. All persons or entities, before utilizing or transferring the moneys, currencies or deposits referred to in the preceding article, must make a previous declaration to the Exchange Department of the Bank of Guatemala or to any of the qualified banks, except in the case of ordinary operations of current character of the banks themselves, which shall be governed by the permanent system established in Article 34 of this law. Art. 48. The declarations required in Articles 46 and 47 shall be accompanied by such data and evidence as the Exchange Department may require concerning the amount, nature and other conditions of the operation. Penalties—Art. 49. Those who violate the provisions of Articles 46, 47 and 48 shall be punished with fines up to three times the amounts concealed or transacted surreptitiously and, depending on the gravity of the violation, with the suspension or cancellation of the commercial licenses. These fines shall be applied by the Ministry of Economy upon request of the Bank of Guatemala. Art. 50. The Exchange Department shall annotate and classify the declarations mentioned in the preceding articles, in order to use them in determining the exchange policy of the country. It shall investigate the accuracy of such declarations by the means at its disposal, and solicit the application of the pertinent penalties in cases of false declarations or failure to make declarations. Holdings of foreign exchange by individuals— Art. 51. The Monetary Board may at any time: a) Prohibit, totally or partially, or submit to previous authorization, the maintenance of deposits by individuals, either abroad, or in foreign currencies within the country; and, b) Subject such authorization to the requirements and conditions which it deems necessary for the efficient application of the Emergency System MARCH 1946 of international transfers, and for the protection of the national currency. Compulsory sale of incoming exchange—Art. 52. Similarly, the Monetary Board shall be empowered to demand at any time the sale to the Bank of Guatemala, through the medium of the qualified banks, of the foreign exchange proceeds from exports or from any other source of easy control, subject to the exceptions mentioned in Article 70 of this law. This requirement may be made to extend either to the totality of the exchange acquired by any person or entity, or to percentages or ad hoc valuations established by the Board itself, and which may vary according to the class of operations in which the acquisition of the exchange originates. Chapter VIII Negotiation of International Reserves Three exchange markets—Art. 53. The Bank of Guatemala shall apply the international reserves which it acquires to meeting the demands of foreign exchange for payments and remittances abroad. The exchange required for essential payments and remittances shall be sold in the conditions established in the normal exchange system. The exchange required for nonessential payments and remittances shall be distributed through an auction market. The exchange, the sale of which to the Bank of Guatemala can not be demanded in accordance with this law, or is not required by the Monetary Board, may be negotiated in a free exchange market. Compulsory sales by the Ban\ of Guatemala— Art. 54. The Bank of Guatemala shall be obligated to offer currently for sale the total of the foreign exchange that it currently acquires, with the following exceptions: a) The Bank may retain temporarily the amounts necessary in order to ease seasonal or purely accidental fluctuations in the inflow and outflow of exchange over the course of the year; b) The Bank may similarly retain temporarily the whole or part of extraordinary acquisitions of exchange resulting from borrowings abroad, in order to assure the best utilization of the exchange over the period of the loan; and, c) When the net reserves of the "Monetary Stabilization Fund" are less than 50 per cent of the average sales of exchange during the three preceding years, the Bank may retain the amounts necessary for the gradual reconstitution of this percentage over a period of not less than 12 months. 265 FOREIGN BANKING LAWS AND REPORTS shall determine whether such services must be considered as essential, and which, if it deems them so, shall determine the corresponding amounts of Essential transfers—Art. 55. Available gold and exchange. The decisions of the Exchange Departforeign exchange of the Bank of Guatemala shall ment may be appealed to the Monetary Board. Only the amounts approved by the Exchange be used preferably for the sale of exchange required by the following essential payments and remit- Department, or by the Monetary Board, in accordance with the provisions of the preceding paragraph, tances: shall enjoy access to the exchange market for a) Payments for indispensable and nondeferrable essential payments. merchandise of general consumption and producPayments on foreign investments—Art. 60. The tion goods; persons or entities interested in the payments reb) Indispensable payments and remittances of ferred to in clauses (d) and (e) of Article 55, and the State and of official institutions; which wish to take advantage of the guarantees c) Payments abroad for services, in the amounts established in Article 56, must register the reindispensable to meet essential needs or to main- spective capitals or investments in the Exchange tain the regular functioning of activities useful to Department, which may refuse their registration the public or the economy in general; when the investment under consideration is in d) Contractual payments abroad for interest opposition to the needs of economic policy or to and amortization of loans or other obligations; and, national interests. The decision of the Exchange e) Payments of dividends, profits or amortiza- Department may also, in this case, be appealed tion of foreign capital permanently invested in the before the Monetary Board. country, in amounts representing up to 15 per Only the capitals registered in the Bank of Guatecent per year in at least five years out of any ten, mala in accordance with the preceding paragraph and up to 5 per cent annually in any of the other shall have access to the exchange market for essenyears of the same decade. These percentages shall tial payments, and only up to the maximum be calculated on the amount of the verified invest- amounts or percentages which the Monetary Board ments. shall determine, in a general manner and without Guarantees—Art. 56. The exchange destined to any discrimination. meet the essential payments specified in the preBookkeeping prerequisites—Art 61. No considceding article shall be sold regularly and without eration shall be given, for the application of Articles restrictions by the Bank of Guatemala, through the 55 and 56 of this law, to declarations of debts or medium of the qualified banks, at the rates estab- requests for remittances presented by persons or enlished in Articles 24 and 25 of the present law, pro- tities which do not keep in the country full legal vided that the conditions established in this chapter accounting of their operations. are complied with. Essential imports—Art. 57. The Monetary Board shall determine the merchandise to which clause Chapter X (a) of Article 55 is applicable and shall put on The Auction Market sale the amounts of foreign exchange which shall assure their normal importation. Exchange for nonessential transfers—Art. 62. The Board may amplify or restrict the list of such merchandise, in accordance with the situa- The balance of the foreign exchange which remains available after meeting the essential paytion of the exchange market. Official payments—Art. 58. The Exchange De- ments referred to in the preceding chapter, shall partment shall qualify and authorize the requests be assigned to meeting payments abroad for nonfor exchange destined for the payments and re- essential imports and deferrable imports, and for mittances to which clause (b) of Article 55 is other nonessential remittances which the Monetary applicable; but, when it deems that the exchange Board may determine. Sale of licenses by auction—Art. 63. Such foreign is required for nonessential purposes, it shall reexchange shall be sold at the rates established in port the matter to the Monetary Board. Payments for services—Art. 59. The persons or Articles 24 and 25 of the present law, and shall be entities which receive the services mentioned in distributed among the buyers through periodic pubclause (c) of Article 55, and which wish to take lic auctioning of exchange licenses, to be effectuated advantage of the guarantees established in Article by the Bank of Guatemala, at least once a week. 56, must submit previously the respective contracts Importers shall indicate freely the rate which or programs to the Exchange Department, which they are prepared to pay in each auction and the Chapter IX Exchange Market for Essential Payments 266 FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS amounts of exchange which they request at that thorized considerably exceed the amount of exchange offered for sale. rate. Surplus exchange—Art. 67. If during the course The Bank of Guatemala shall award to the highest bidders the exchange put on sale, or a larger or of three successive auctions there remains a surplus smaller amount, according to what it deems desir- of exchange in any one auction category, in spite of able in order to avoid sudden fluctuations in the the fact that the quotation of the respective rate has fallen to zero, the Bank of Guatemala must auction rate. Direct sale of licenses—Art. 64. Instead of offer- count such surplus exchange as available exchange ing the licenses at auction in accordance with the and distribute it, together with other future surprovisions of the preceding article, the Monetary pluses, among the remaining sale categories. Auction procedures—Art. 68. Auctions shall be Board shall be empowered, if it deems it preferable, to determine directly the rates to be charged for the carried out in the presence of the Director of the concession of licenses. In this case, the Board must Exchange Department, who shall award the establish the level of these rates so as to approxi- licenses and certify the results of the auction. In case of unusual results which lead to suspicion mate the results of the auction and to equilibrate demand with supply. The Board must similarly re- of collusion or fraud, he shall temporarily suspend view the rates periodically, and at least once a week, the award of licenses and shall immediately reon the basis of the disequilibria which manifest quest an extraordinary session of the Monetary themselves currently between the available ex- Board in order to report the situation. The Board may annul the respective auctions and must comchange and the demands subject to licenses. Obtaining of licenses—Art. 65. Whatever the municate its decision within the 48 working hours procedure adopted, the only condition which shall following the auction. The Director of the Exchange Department may, exist and which may be imposed in order to obtain the exchange licenses shall be the payment of the with the approval of the Manager of the Bank, rates determined by the Monetary Board or result- designate an officer of the Bank as his delegate to exercise the functions and powers mentioned in ing from the auction. Expiration of licenses—Nevertheless the exchange this article. Proceeds of exchange licenses—Art. 69. The prolicenses shall lapse in case they are not utilized for the purpose for which they were granted, within ceeds of the exchange licenses shall be added to the the normal period corresponding to the operation. other profits of the Bank of Guatemala. This period may be extended by the Exchange Department in justified cases. Chapter XI Classification of auction exchange—Art. 66. The The Free Exchange Market Monetary Board may, if it deems it advisable, classify the requests subject to the auction system into Free exchange — Art. 70. Incoming exchange groups determined upon generally accepted bases, related to the degree of essentiality and urgency of from the following sources shall be considered as the operations, and may distribute the offers of ex- free exchange: a) Salaries and expenses of foreign diplomatic change among these groups, with the object of assuring an adequate distribution of available ex- agents and career consuls in Guatemala, and of change in accordance with the real needs of the representatives of institutions or agencies of intereconomy. The distribution must be made in such national cooperation; b) Foreign capital entering the country for pera way as to avoid having the rates corresponding to more essential or more urgent operations exceed manent or temporary investment; c) The repatriation of Guatemalan capital inthose applicable to less essential or less urgent operavested abroad; tions. d) Scarce or occasional exports to be determined Buying limits—If the Board deems it necessary in order to avoid an excessive concentration of sales by the Monetary Board; e) The difference between the percentages or among a few groups of buyers, it may also limit the amounts of exchange which may be granted to ad hoc valuations mentioned in Article 52, paraany one person or entity, to a percentage of pur- graph 2, and the actual exchange proceeds; and, f) Other incoming exchange, the sale of which chases abroad during a previous representative period. This percentage must be uniform for all to the Bank of Guatemala is not demanded by buyers belonging to the same auction group, and the Monetary Board. must be established in such a way that the global Such foreign exchange may be freely negotiated sum of the maximum individual amounts thus au- in accordance with the provisions of this chapter, MARCH 1946 267 FOREIGN BANKING LAWS AND REPORTS provided that its holder does not prefer to retain change to any amount which it deems desirable to cover its exchange needs. it abroad. Purchase and sale of free exchange by individuals —Art. 71. The holders of free exchange may sell it Chapter XII to the Bank of Guatemala or to any qualified bank. Control of Capital Movements The only prerequisite applying to such transactions shall consist of a declaration indicating: a) The Capital Flight—Art. 76. Whenever it be necesprofession or business of the seller; b) the amount sary in order to combat a characteristic flight of of exchange negotiated; and c) the origin of the capital which threatens to reduce the international exchange. reserves of the Monetary Stabilization Fund to the The purchasing bank shall pay for the exchange levels or in the proportion indicated in Article 38, at the current buying rates and in addition shall the exchange restrictions mentioned in the second deliver to the sellers a "certificate of free exchange" part of this law may be put into force, totally or to the bearer, in which the amount of the negotiated partially, by decree of the President of the Republic exchange shall be recorded. in Council of Ministers, upon request of the MoneArt. 72. The certificates of free exchange re- tary Board. ferred to in the preceding article shall give the In this case, the exchange restrictions shall be holders the right to buy, in the Bank of Guatemala applied only to capital movements, without affector in any of the qualified banks, the amount of ex- ing other international transfers of a current charchange expressed in such certificates, at the current acter. selling rates at the time of purchase of the certifiNevertheless, in case the general exchange restriccates, provided that they be presented within the tions come to be put into force by reason of a reduceight working days following the date of their tion of international reserves to the levels or in the issuance. proportion indicated in Article 38 of this law, capiThe Monetary Board may extend this period in tal movements shall be controlled through the proa general and uniform manner. When the respec- cedures applicable in a general manner to all intertive period has elapsed, the certificate shall expire. national transfers. The exchange certificates may be freely negotiAbnormal capital inflow—Art. 77. Whenever it ated between any interested persons or entities, at be indispensable to combat a pronounced inflathe prices determined by their supply and demand: tionary movement, the entry of foreign capital seekbut the Monetary Board may order that such opera- ing investment in the Republic may be subjected to tions be transacted only through the medium of the authorization, and its free conversion into national Bank of Guatemala or of the qualified banks, al- currency may be suspended, by decree issued by the ways at the prices determined by supply and de- President of the Republic in Council of Ministers, upon request of the Monetary Board. mand. In this case, the Monetary Board may demand Art. 73. Holders of certificates who make use of their right to purchase foreign exchange at the cur- that any sum which exceeds certain maximum limrent rate must present to the Bank of Guatemala, or its, fixed by the Board itself, be deposited with the to any of the qualified banks, a declaration indi- Bank of Guatemala, in a special account, until the cating: a) The profession or business of the buyer; authorization for conversion into quetzales and inb) the amount of exchange purchased; and c) the vestment in the country be granted or denied. Sums thus deposited may be withdrawn from the proposed destination of the funds. Ban\ing negotiation of free exchange—Art. 74. country at any time and in the currency of The Monetary Board may simplify the procedure origin by their respective depositors. established in Article 72 when a bank simultaneously acquires from the seller the free exchange Chapter XIII and the respective certificate. The Board may Termination of Exchange Restrictions similarly grant, in a general and uniform manner, periods additional to the eight days referred to in Relaxation of restrictions—Art. 78. The Monethe article mentioned, for certificates of free ex- tary Board may, at any time, in accordance with change corresponding to operations effected by the the monetary situation of the country, relax totally banks among themselves, and for certificates which or partially any exchange restrictions previously the banks themselves may retain in order to attend decreed in conformity with the provisions of the to their sales of free exchange. second part of this law. Free acquisition of certificates—Art. 75. Any per- Termination of restrictions—Art. 79. Similarly, son or entity may acquire certificates of free ex- the Monetary Board may, at any time, officially and 268 FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS completely terminate all exchange restrictions, and restore the free external convertibility of the currency, by decree of the Board itself published in the official gazette. The Monetary Board shall be obligated to terminate officially all exchange restrictions, through the procedure indicated in the preceding paragraph, upon discontinuance of the circumstances which have motivated the introduction of such restrictions. In any case, the Monetary Board must terminate all restrictions decreed in order to prevent or combat the effects of scarcity of exchange, whenever the auction rates of exchange and the quotations of free exchange have fallen to, and remained at, zero .during a period of 12 consecutive months. Third Part General Provisions Chapter XIV Final Provisions Required information—Art. 80. The banks, exporters, importers and, in general, persons or entities which effectuate transactions involving international transfers, shall be obligated to give free access to their books and accounting vouchers to the inspectors appointed by the Monetary Board or by the Exchange Department. The Ministry of Economy, at the request of the Bank of Guatemala, may punish those who refuse to yield their books and vouchers, with fines up to 1,000 quetzales and, depending on the gravity of the violation, with the suspension or cancellation of their commercial licenses, in addition to other penalties prescribed in this law. Art. 81. Official departments must make available to the Bank of Guatemala the data and information which it requests for the fulfillment of this law. Fiscal exemptions—Art. 82. National monetary specie of legal tender shall be exempt from any kind of taxes and duties, fiscal or municipal. Similar exemption shall apply to all operations of monetary conversion or exchange effectuated in accordance with this law, whether they concern the exchange of some national species for others, the payment of checks against banking deposits, the exchange of gold or foreign exchange for national currency, or the acquisition and alienation of documents implying international transfers. Amendments—Art. 83, Modifications of the present law shall require for their approval the concurrent vote of two-thirds of the representatives forming the Congress of the Republic. Abrogation—Art. 84. The Monetary and ConIMARCH 1946 version Law issued by legislative Decree No. 1379, dated May 2, 1925, is abrogated, together with all provisions regulating the monetary system of the Republic. Decree No. 66 of the Revolutionary Council of Government, and all laws, decrees, resolutions and provisions which are in opposition to the prescriptions of this law are hereby repealed. Chapter XV Transitory Provisions Interpretation of existing contracts—Art. 85. Contracts concluded previous to the entering into force of this law, and which stipulate payment either in gold, or silver, or foreign currencies, shall be executed and liquidated exclusively in quetzales, the conversion into quetzales being made at the legal parity established in the present law. The provision of this article shall not apply to the contracts and obligations excepted under Article 3. Trading in precious metals—Art. 86. The existing legal and regulatory provisions concerning the exportation, importation, holding and negotiation of gold and other precious metals shall continue in force, in so far as they do not contradict the prescriptions of this law. The Bank of Guatemala shall exercise, as long as such legislation continues, the functions and powers attributed in this respect to the Central Bank of Guatemala and to the Monetary and Banking Department. Effective date—Art. 87. The present decree shall enter into force 10 days after its publication in the official gazette. Nevertheless, the provisions of this law which confer attributions, functions and powers to the Bank of Guatemala and to the Monetary Board, shall enter into force three days after the resolution in which the Executive Power shall declare the Bank of Guatemala as established. The present decree shall be sent to the Executive Power for its publication and enforcement. Given in the Congressional Palace: in Guatemala City, on the twenty-ninth of November, nineteen hundred and forty-five, second year of the Revolution. JULIO BONILLA G., President JULIO VALLADARES C, P. ESPANA R., Secretary Secretary National Palace: Guatemala City, tenth of December, nineteen hundred and forty-five. Publish and execute. J U A N JOSE AREVALO. The Minister of State for Economy and Labor, M. NORIEGA M. 269 FOREIGN BANKING LAWS AND REPORTS Decree Number 215 The Congress of the Republic of Guatemala, considering: That the issue of Decrees No. 203 and 212 presupposes the creation of an autonomous State Bank; and that, on the other hand, the present economic conditions of the Nation demand a radical reform in the banking and credit system; For that reason, Decrees: the following c) Safeguard the international economic equilibrium of the country and the competitive position of national producers in the domestic and foreign markets. Means of action—Art. 5. For the fulfillment of these objectives and duties, the Bank shall count on its moral suasion, on its legal powers for the regulation of money, exchange and credit, and on the fullest support and cooperation on the part of the State and all its agencies. In consequence the State guarantees to the Bank Organic Law of the Bank of Guatemala the independence and autonomy necessary for the effective fulfillment of its objectives. Title I International responsibilities—Art. 6. The Bank Creation and Object shall act in conformity with the international moneCreation—Art. 1. There is hereby created a State tary and banking agreements subscribed to and Bank under the name of "Bank of Guatemala". ratified by the Republic. The Bank shall function as an autonomous instiIt shall legally represent the State in all transactution, and shall be governed by the provisions of tions, negotiations and decisions resulting from this law and by the Monetary Law. such agreements, subjecting its action to the pertiPurpose—Art. 2. The principal object of the nent legal provisions and to the instructions which Bank of Guatemala shall be to promote the estab- the Government may impart to it in the cases lishment and the maintenance of the monetary, ex- foreseen in this law and in the Monetary Law. change and credit conditions most favorable to the Domicile—Art. 7. The Bank shall have its domiorderly progress of the national economy. cile in the City of Guatemala. Art. 3. In the domestic sphere the Bank especially must: Title II a) Adapt the means of payment and credit Guarantee Fund and Profits policy to the legitimate needs of the country and Guarantee jund—Art. 8. The Bank shall be to the development of productive activity; and prevent any inflationary, speculative and deflationary established with an initial Guarantee Fund of five hundred thousand quetzales (0500,000.00), which tendencies detrimental to the general interests; b) Promote the liquidity, solvency and sound shall be contributed by the State. Art. 9. The Guarantee Fund shall be used to operation of the national banking system, and a distribution of credit adequate to the general interests cover any possible losses which the Bank may suffer in the course of its legal operations, except of the national economy; and, c) Effect the necessary coordination between the those resulting from modifications in the legal various economic and financial activities of the parities of the currencies. Use of net profits—Art. 10. The annual net profits State which influence the monetary and credit market, and especially between fiscal and monetary of the Bank, after judicious amortization of assets, shall be used in their entirety to increase the Guarpolicy. antee Fund, until this Fund reaches a sum equivaArt. 4. In the international sphere the Bank es- lent to 10 per cent of the total assets of the Bank, pecially must: provided that this percentage exceeds 500,000 a) Maintain the external value and convertibility quetzales. In making this calculation, there shall of the national currency, in conformity with the be subtracted from assets that part of the Monesystem established in the Monetary Law; tary Stabilization Fund which is maintained in b) Administer the international monetary re- metallic gold, in sight deposits abroad and in other serves of the Nation and the system of international equivalent international reserves, disposable at transfers, with the object of protecting the country sight and at par. from undue monetary pressures, and of moderating Profits originating in modifications in the legal —by means of an adequate monetary, banking and parities of the currencies shall not enter into the credit policy—the injurious effects of seasonal, computation of net annual profits. cyclical or erratic disequilibria of the balance of Fund for the regulation of the bond market— payments, upon money supply, credit, prices and Art. 11. Whenever the Guarantee Fund reaches the economic activities in general; and, higher of the two limits mentioned in the preceding 270 FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS article, the balance of net annual profits shall be used in its entirety for the constitution or increase of a "Fund for the Regulation of the Bond Market". This Fund shall operate in the manner and for the ends specified in this law. Revaluation profits and losses—Art. 12. Any profits resulting from possible modifications in the legal parities of the currencies, in conformity with the pertinent provisions of the Monetary Law, shall be used immediately for the amortization of the "Consolidation Bond of Subsidiary Issues", mentioned in Article 58, clause (e), of the present law. Once said bond has been cancelled, these profits shall be entered and shall accumulate in a liability account denominated "Liability Account of Exchange Revaluations" whose resources shall not be drawn upon by the Bank. Art. 13. Any losses resulting from modifications in said legal parities shall be entered and shall accumulate in the same manner in a parallel asset account, denominated "Asset Account of Exchange Revaluations". At the close of each financial period, a balance shall be struck between the two exchange revaluation accounts, and only the net difference shall appear in the Bank's balance sheet under the general heading "Exchange Revaluations Account", under either liabilities or assets, according to whether there has been net profits or net losses. In consequence, these profits or losses shall not enter into the computation of the net profits or losses of the financial period. Profits from reductions in the monetary issue— Art. 14. The amount of any reduction in outstanding notes and coin due to losses, destruction or demonetization of monetary specie, determined in accordance with the pertinent provisions of the Monetary Law, shall be applied either to the amortization of the Consolidation Bond of Subsidiary Issues, or to the reduction or cancellation of the net balance of the Exchange Revaluations Account, or to the general profits of the Bank, according to the resolution adopted on the matter by the Monetary Board. Title III Direction and Administration Chapter 1 The Monetary Board Composition—Art. 15. The Bank of Guatemala shall function under the general direction of the Monetary Board, which shall be composed of six members, designated in the following manner: MARCH 1946 a) The President of the Republic shall appoint two titular members and two alternates for sixyear periods, from a list of six persons submitted by the other titular members of the Board. The titular members designated by the President of the Republic shall exercise, in accordance with their appointment, the functions of President and Vice President of the Monetary Board and of the Bank of Guatemala; b) The Minister of Finance shall be an ex officio member of the Monetary Board and shall have authority to delegate his functions, when he deems it advisable, to one of the high officers of the Ministry; c) The Minister of Economy shall also be an ex officio member of the Monetary Board and shall have authority to delegate his functions, when he deems, it advisable, to one of the high officers of the Ministry; d) The Superior Council of the Autonomous University of San Carlos of Guatemala shall designate a titular member and an alternate for a sixyear period, from a list of three persons for the titular, and another list of three for the alternate, submitted by the Board of Directors of the Faculty of Economics; and, e) The private banks which operate in the Republic shall elect annually a titular member and an alternate for a period of one year. For the election of these members, each of the private banks shall have a single vote; and preferably they shall elect one of their directors, managers or assistant managers. Art. 16. Alternates shall serve in the place of titular members in case of their absence or temporary incapacity, and preferably the alternate named in the same manner as the absent titular shall serve in his place. Nevertheless, the alternate of the President of the Board shall substitute for him only in his capacity as member of the Board but not as President. Art. 17. The alternates, when not substituting for the titulars, may attend the sessions of the Board, with the right to be heard but not to vote. Renewals—Art. 18. The terms of the President and Vice President of the Bank and of the member designated by .the autonomous University of San Carlos of Guatamala shall be staggered so as to provide for a renewal every other year. For this purpose, the initial appointment of the President shall be made for a period of two years, that of the Vice President for a period of four years, and only that of the member designated by the Autonomous University of San Carlos of Guatemala for the normal term of six years. 271 FOREIGN BANKING LAWS AND REPORTS The same terms shall also apply to the respective alternates. Art. 19. Appointments of members of the Monetary Board to replace members whose terms have expired must take place within the 30 days prior to the expiration of such term. Titular members and alternates shall be eligible for reappointment. Vacancies—Art. 20. In case a vacancy is created through the death, resignation, incapacity, removal or other permanent inability of a titular member or alternate to discharge the duties of the office, there shall be designated a new titular member or alternate, as the case may be, to complete the term of the vacating member. This designation shall be made in the form provided for the designation of the vacating member. Eligibility—Art. 21. The President and Vice President must be persons of unquestioned integrity and recognized training and competence in economic and financial matters. For the designation of the other titular members and alternates of the Monetary Board, preference shall be given to persons of recognized integrity and competence in banking, commercial, agricultural, pastoral or industrial matters. Disqualifications—Art. 22. None of the following may be titular members or alternates of the Monetary Board: a) Persons less than 25 or over 70 years of age; b) Leaders of organizations of a political character, except that this prohibition shall not apply to ex officio members and their delegates; c) Persons occupying remunerated public positions or offices, whether by popular election or by appointment, in any agency of the State or the municipalities, except positions of an educational character; this prohibition shall not extend to the Ministers of Finance and Economy and their delegates; d) Directors, managers or employees of other banks, except in the case of titular and alternate members elected by the banks in accordance with clause (e) of Article 15; e) Persons related within the fourth degree of consanguinity or second degree of affinity, to the President of the Republic, the Minister of Finance or the Minister of Economy; f) Two or more persons related within the fourth degree of consanguinity or the second degree of affinity; or belonging to the same company; or forming part of the same directorate in a corporation; g) Insolvent or bankrupt persons who have not been legally restored to solvency; 272 h) Persons who have been condemned for offenses which imply lack of probity; i) Persons who, for any reason whatsoever, are legally incapable of discharging said functions. Art. 23. When any of the disqualifications mentioned in the preceding article exists or occurs, the appointment or authority of the affected member shall lapse, and action shall be taken to replace him in the manner provided for in the case of a vacancy. The finding and declaration of disqualifixation shall be made by the Monetary Board. Notwithstanding such disqualification, any acts or contracts authorized by the member prior to his disqualification shall not be invalidated, either with respect to the Bank of Guatemala or with respect to third parties. Removal—Art. 24. A member of the Monetary Board shall be removed only by resolution of the President of the Republic, upon judiciary sentence pronounced in summary indictment by the Court of Accounts, and for the following reasons: a) If any one of the disqualifications mentioned in Article 22 of this law appears, and the Monetary Board fails to act in accordance with Article 23; b) If the member is responsible for acts or operations of a fraudulent or illegal character, or manifestly opposed to the aims or interests of the institution; c) If final sentence is passed upon the member in a criminal prosecution. In the case of detention awaiting trial, he shall be incapacitated for the discharge of his office and shall be replaced by the alternate. The denunciation of a member shall be made before the Court of Accounts by the Superintendent of Banks or by any titular or alternate member of the Monetary Board. Sessions—Art. 25. The sessions of the Monetary Board shall be called by the President, by the Vice President when serving in his place, or by any member with the approval of a majority of the Board, and shall be convened at least once a week. The Board shall meet validly with the attendance of at least five members, and its resolutions shall be adopted by a simple majority of those present, except when the law requires a special majority. Advisors—Art. 26. The Manager, the Superintendent of Banks, the Director of the Department of Economic Research and the Director of the Exchange Department shall participate in the Board's deliberations, in the capacity of permanent advisors, with the right to be heard but not to vote. Art. 27. When the Board deems it advisable, it may invite to participate in its deliberations, with the right to be heard but not to vote, any other FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS qualified person, and especially its alternate members and the representatives of the other financial institutions of the State. Remuneration—Art. 28. The presence of titular and alternate members and of advisors at the sessions of the Board shall entitle them to a fixed fee, determined in regulations of the Bank with the approval of the Executive Power. Remuneration may not take the form of commissions, or be related to the earnings of the institution. Persons not connected with the institution and domiciled outside the capital shall be reimbursed for traveling expenses when invited to a session in an advisory capacity. Nonattendance of members having a personal interest—Art. 29. Whenever the Board's deliberations or resolutions involve a personal interest on the part of one of the attendants, or of his associates or relatives within the fourth degree of consanguinity or second degree of affinity, he shall be barred from participation in such deliberations or resolutions, and must withdraw from the session. Powers and duties—Art. 30. The Monetary Board shall be responsible for the determination of the monetary, exchange and credit policy of the Republic, and for the general direction of the Bank of Guatemala. To this end, the Monetary Board shall have the following powers and duties: a) Execute and enforce the general policy and •duties assigned to the Bank of Guatemala, through the use of its powers and the performance of legal operations; b) Approve, amend and interpret the regulations of the Bank of Guatemala, subject to ratification by the Executive Power in the special cases provided for in the law; c) Approve annually the report of the Bank, its balances and profit and loss accounts, as well as the disposal of its profits, in conformity with the legal provisions; d) Vote the annual budget of the Bank, set up the necessary positions for the administration of its affairs, and determine the corresponding remunerations; e) Appoint and remove the Manager, the directors of the departments, the advisors and other higher officers of the Bank of Guatemala, and assign them their functions within the provisions of this law; f) Submit a list of three names to the Court of Accounts for the appointment of the Superintendent of Banks; g) Appoint the advisors required for the proper functioning of the Bank and the efficient performance of its operations; MARCH 1946 h) Determine, modify and publish the rediscount and interest rates of the Bank of Guatemala; i) Regulate the rediscount and credit services of the Bank of Guatemala, and determine the general conditions and limits of the various operations of the Bank authorized in this law; j) Designate the officers and employees of the Bank who shall be empowered to authorize specific operations, and determine the limits and conditions within which they may exercise such authority; k) Determine and modify the legal reserves of the banks, in accordance with this law, and regulate clearings between the banks; 1) Determine the maximum rates of interest on the passive and active operations of the banks, and regulate bank credit in accordance with the provisions of this law; m) Direct the general policy of all banking institutions of an official or semi-official character, in so far as it relates to the monetary, exchange and credit policy of the Republic, through: i) Instructions, recommendations and suggestions relative to the general credit policy of such institutions and their issues of securities and other obligations; ii) Intervention in the organization of the directorates and the administration of the institutions, in the form established in the pertinent laws; iii) Determination of the rates to be charged or paid for active and passive operations; and, iv) The limitations which the Board may deem necessary to impose, according to the conditions prevailing in the money market, upon the granting of credits and the issue of obligations by those institutions; n) Exercise the other functions and powers assigned to it in accordance with this law, the Monetary Law and other pertinent provisions. Responsibility—Art. 31. The Board shall exercise its functions with absolute independence and under its exclusive responsibility, within the authority determined by this law and the regulations. Any act, resolution or omission of the Board which violates legal provisions, or which implies the intent to cause damage to the Bank of Guatemala, shall make all members present at the session liable personally and jointly to the Bank of Guatemala, the State and any third party, for the injuries and damages incurred. Exempted from this responsibility shall be the titular members who have registered their dissenting vote, and the others present who have registered their objection in the minutes of the session at which the matter was discussed. 273 FOREIGN BANKING LAWS AND REPORTS The same responsibility shall attach to those who divulge any information of a confidential character about matters discussed by the Board, or who make use of such information for personal gain, or in detriment to the Nation, the Bank or third parties. cial entities and with international financial institutions, in all respects that do not pertain to current operations of the Bank of Guatemala; c) Intervene in the name of the Bank in all matters which, by reason of their nature or magnitude, exceed the authority of the Manager or the Superintendent of Banks, in accordance with the decisions of the Monetary Board; Chapter II d) Authorize with his signature, separately or The Presidency jointly with the Manager, the contracts entered into Powers and duties—Art. 32. The President shall by the Bank of Guatemala, the notes or securities call and preside over the sessions of the Monetary which it issues and the obligations which it contracts, as well as the reports, balances, profit and Board and shall guide its deliberations. The President shall have the following responsi- loss accounts, correspondence and other documents, in accordance with the laws and regulations of the bilities: Bank and the resolutions of the Monetary Board; a) Assure the fulfillment of the objectives and e) Delegate his power to represent the Bank of duties of the Bank of Guatemala; Guatemala to the Manager or to other officers of b) Study and prepare the bases and norms of the institution, except when his intervention is the monetary, exchange and credit policy of the in- legally required; and, stitution, present them to the Monetary Board and f) Grant powers of attorney in the name of the assure their implementation; Bank. c) Present to the Monetary Board the projected Art. 34. The President shall supervise the genregulations of the Bank of Guatemala, and the eral progress of the Bank, and guide the Manager amendments which experience may suggest; in the execution of its policies, and the Superind) Propose to the Monetary Board the annual tendent of Banks in the functions of inspection and budget of the Bank, and suggest modifications examinations. whenever necessary; The President of the Bank shall resolve in last e) Submit for the consideration of the Monetary Board all matters on which it should act, and give instance all matters not reserved to the decision his opinion on them, verbally or in writing, de- of the Monetary Board. Art. 35. The President shall also have authority, pending on the importance of the case; jointly with the Manager and the Superintendent f) Impart to the Department of Economic Research the instructions necessary for the drafting of Banks: a) To decide, in cases of extreme urgency and of the Annual Report of the Bank, and submit the broad outline of this report for the approval of the when it is impossible to arrange an immediate session of the Monetary Board, any matter under Monetary Board; and, g) Perform the other duties and powers assigned the jurisdiction of the Board itself; and, b) To suspend the resolutions or decisions of to him in this law, the regulations of the Bank and the Board, when an unforeseen fact or a serious and other pertinent provisions. urgent need so demand. The President shall exercise his functions with In both cases the President shall have the obligathe collaboration of the Manager, the Superintion to call the Monetary Board as soon as possible, tendent of Banks, the directors of the departments and other officers whose cooperation he deems useful in order to give account of his action and explain why he has deviated from normal procedures. in considering any specific problem. Incompatibility—Art. 36. The President shall be Art. 33. The President shall be the principal under obligation to dedicate his activities chiefly to representative of the Bank of Guatemala and in that the service of the Bank of Guatemala, and his capacity shall have the following functions: functions shall be incompatible with the exercise a) Conduct relations with the authorities of the of any other employment, public or private, whether Republic, especially the Executive Power, and pro- remunerated or ad honorem, with the exception of mote coordination between the economic, financial positions of an educational character and of comand fiscal policy of the State and the policy of the missions directly related to the direction of moneBank of Guatemala, in accordance with the instruc- tary and banking policy. tions or recommendations of the Monetary Board; Vice-Presidency—Art. 37. In case of the absence b) Conduct, directly or through the Manager, re- or temporary incapacity of the President, the Vice lations with other central banks, with foreign offi- President shall act as President. 274 FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS Chapter III documents, in accordance with the laws and regulations of the institution and the resolutions of the The Management Monetary Board. Provision for alternate—Art. 41. In case of the Functions—Art. 38. The Manager shall be in charge of directing the operations and internal absence or temporary incapacity of the Manager, administration of the Bank of Guatemala, and shall the Monetary Board shall designate any one of be responsible to the President and to the Monetary the department directors of the Bank to serve in Board for the correct and efficient functioning of his stead. - Qualifications—Art. 42. The Manager or his the institution. The Manager shall be the superior officer of alternate must fulfill the same qualifications rethe Bank of Guatemala and of its personnel, with quired for the Presidency of the institution. Those who fall under any of the disqualifications the exception of the Superintendent of Banks. Art. 39. The powers and duties of the Manager mentioned in Article 22 of this law, in so far as they are applicable, shall be ineligible for the shall be the following: position. a) Supervise continuously the progress of the The positions listed in Article 36 of this law as Bank, the observance of pertinent laws and regula- incompatible with the office of President of the tions, and the fulfillment of resolutions of the Bank of Guatemala are also incompatible with the Monetary Board; office of Manager. b) Furnish the President and the Monetary Board with such regular, precise and complete inChapter IV formation as may be desirable to assure the proper management of the Bank; The Office of the Superintendent of Banks c) Prepare the cases that must be submitted to the consideration of the Monetary Board, and, with Functions—Art. 43. The Superintendent of the President, decide the order in which they shall Banks shall exercise continuous supervision and be submitted; inspection of the Bank of Guatemala and of other d) Prepare the annual budget of the Bank and banking institutions placed under his control. The Superintendent shall be directly responsible to the assure its correct application; e) Suggest to the Monetary Board the appoint- Monetary Board. Art. 44. The functions of the Superintendent ment of the higher officers of the Bank of Guateof Banks are the following: mala; f) Appoint and remove directly the other ema) Execute and assure the observance of the ployees, assigning them their functions and salalaws, regulations and provisions relating to the ries, in accordance with the regulations and within Bank of Guatemala and other banking institutions; the authorizations of the budget. b) Audit all operations and activities of the Bank This authority shall be exercised in agreement of Guatemala, verifying its accounts and holdings with the Superintendent of Banks when dealing through inventories and other relevant procedures; with the personnel of his office; g) Resolve the operations and other matters per- examine balances and statements of account, checktaining to his decision, and communicate to the ing them against the books and documents, and officers and employees the instructions, observa- certify them when he deems them to be correct; c) Supervise, with direct responsibility, the issue tions or recommendations which he deems advisable for the proper progress of operations and the of notes and coin, and especially the operations of printing, minting, issuance, replacement, withefficient administration of the Bank; and, drawal, cancellation, demonetization, incineration h) Exercise the other functions and powers pertaining to his office in accordance with this law, the and custody of notes and coin; d) Report to the Manager any irregularity or regulations and other pertinent provisions. violation which he observes in the operations and Art. 40. The Manager shall represent the Bank activities of the Bank of Guatemala, and in case the of Guatemala in current matters and operations Manager does not adopt, within the next three and, in this capacity, shall authorize, separately or working days, measures which, in the opinion of jointly with the President, the contracts entered the Superintendent, are adequate to correct the into by the Bank of Guatemala, the notes or securi- deficiencies, submit the matter to the President ties which it issues and the obligations which it and to the Monetary Board; contracts, as well as the reports, balances, profit e) In case the Monetary Board does not adopt and loss statements, correspondence and other adequate measures to rectify irregularities or violaMARCH 1946 275 FOREIGN BANKING LAWS AND REPORTS tions brought to its attention, or in case it adopts resolutions or regulations violating legal provisions, or acquiesces in decisions which adversely affect the prestige and solidity of the Bank, or cause it to deviate substantially from its functions, report the situation to the Ministry of Economy and the Court of Accounts, with such pertinent evidence as the case may require; f) Regularly inspect the banking institutions and effect appropriate verifications through the auditors of his office; These inspections and verifications must be made at least twice a year without previous notice to the institutions to be inspected; g) Present to the banking institutions the suggestions or recommendations which he deems advisable; instruct these institutions to correct any deficiencies or irregularities which may have occurred; and take the measures within his competence, or recommend to other authorities measures within their competence, to punish and correct any violations which may have taken place; The executive or interpretative resolutions which the Superintendent adopts with relation to the functions of inspection and examination of banking institutions may be appealed to the Monetary Board; h) Present summary reports on the inspections and examinations of the banking institutions to the Monetary Board, which may request, when it deems it appropriate, the complete report of the Superintendent, as well as any other confidential information on the inspected institutions; i) Collaborate with the Management and the other departments of the Bank of Guatemala in the fulfillment of their duties; and, j) Exercise the other functions of inspection and examination pertaining to his position, in accordance with the laws, regulations and other pertinent provisions. Qualifications—Art. 45. The Superintendent of Banks must be a person of recognized probity and ample knowledge and experience in accounting, auditing and banking practice. Those who fall under any of the disqualifications mentioned in Article 22 of this law, in so far as they are applicable, shall be ineligible for the position of Superintendent. Art. 46. The Superintendent of Banks shall be appointed by the Court of Accounts, from a list of three nominees submitted by the Monetary Board, for a term of five years computed from the date of his appointment, and shall be eligible for reappointment in the same manner. Removal from office—Art. 47. The Superintendent of Banks may not be removed from office 276 before the expiration of the period for which he has been appointed, except by the Court of Accounts,, upon petition of the Monetary Board or at the initiative of the Court itself, after previous demonstration of the facts in summary indictment, and only in« the following cases: a) If he falls under any of the disqualificationsmentioned in Article 22 of this law, in so far as« they are applicable; b) If he has committed grave faults of a legal' or moral character disqualifying him for thehonorable performance of his position; and, c) In case of manifest incompetence for the* discharge of his functions. Injunctions—Art. 48. Neither the Superintendent: of Banks nor his subordinates may be directors,, managers, administrators, partners, employees or shareholders of the institutions subject to inspection. Nor shall they be allowed to accept, directly or indirectly, gifts or presents of any kind from these institutions or from their directors. The injunctions mentioned in this article shall extend to the wives and minor children of the Superintendent of Banks and of his subordinates. Art. 49. The information obtained by the Superintendent of Banks and his subordinates in the performance of their functions shall be strictly confidential. They may not reveal or comment upon the data obtained nor the facts observed in the inspection, except in the fulfillment of their duties. Penalties—Art. 50. Violation of the injunctions contained in the two preceding articles shall be considered a serious offense, and shall cause the immediate removal of those responsible, in addition to the application of such other penalties as may be provided for in the Penal Code. Cost of inspection—Art. 51. The institutions subject to the supervision of the Superintendent, with the exception of the Bank of Guatemala, shall defray the inspection services, paying to said Bank an annual quota to be determined by the Monetary Board. This quota shall be calculated on the basis of assets shown on the balance sheets of these institutions, and shall not exceed, in any case, one per thousand of the assets of each institution after deduction of its cash reserves and other liquid funds. If the proceeds of the quotas calculated in this manner should be insufficient to defray the inspection services, the difference shall be charged to the Bank of Guatemala. Supplementary auditing—Art. 52. The Monetary FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS Board may engage foreign firms specialized in auditing and of recognized international prestige to collaborate with the Superintendent of Banks, especially for the inspection of the Bank of Guatemala itself. Chapter V The Department of Economic Research Functions—Art. 53. The Bank of Guatemala shall have a Department of Economic Research, in charge of obtaining the data and making the investigations advisable for the guidance of monetary policy and the attainment of the Bank's objectives. The Department shall be in charge of a Director and shall include the necessary assistants. All must be specialized in economic matters. Art. 54. The functions of the Director of the Department are the following: a) Prepare, with the assistance of the Exchange Department, estimates of the balance of payments; b) Collaborate with the Superintendent of Banks in the preparation of monetary and banking statistics or information; c) Maintain constantly the minimum statistical information referred to in Article 129 of this law, and submit it regularly to the Manager; d) Prepare any other statistical reports and economic studies which, in his judgment, may be useful to the Banks, as well as those requested from him by the Monetary Board, the President or the Manager; e) Collaborate with the Ministries of State, the Bureau of Statistics and other official agencies, in the preparation of economic information and studies, and especially in the improvement of the statistical services of the country; f) Organize and administer the library of the Bank and maintain a maximum interchange of publications and data with other central banks, with financial entities abroad and other international banking institutions; g) Draft the Annual Report of the Bank, in accordance with the instructions imparted by the President; h) Issue releases and publications, and perform other activities in the field of economic education; i) Supervise the preparation and assure the accuracy of the official publications of the Bank of Guatemala; and, j) Exercise the other functions and powers pertaining to his office in accordance with the law, regulations and other relevant provisions. Training of technical personnel—Art. 55. The Department of Economic Research shall consider MARCH 1946 it part of its functions to participate in training technical personnel in economic matters, especially in the field of money, credit and banking. To this end, the Bank of Guatemala, in accordance with the reports and suggestions of the Director of the Department, shall have authority to defray the cost of studies abroad by outstanding employees of the institution and other qualified persons, and to remunerate the services of foreign experts called upon to train the personnel in economic matters. Access to information—Art. 56. The Ministries of State, the Court of Accounts, the Bureau of Statistics and all other agencies of the State shall make promptly available to the Department of Economic Research the data which it may solicit for the fulfillment of its functions. Chapter VI The Other Departments Organization and regulation—Art. 57. The Monetary Board shall organize and regulate the other departments necessary for the functioning of the Bank, and especially the Exchange Department and the Credit Department. Title IV Operations of the Bank Chapter I Assets and Liabilities Assets—Art. 58. The Bank of Guatemala may compute as assets only the following: a) The international monetary reserves forming: the Monetary Stabilization Fund of the institution; b) The credit and investment operations effectuated in accordance with the provisions of this law; c) The Exchange Revaluations Account which may appear in accordance with Articles 12 and 13; d) The assets resulting from its participation in international banking institutions, and from its credit operations abroad; e) Provisionally, and until their cancellation or liquidation: i) The Consolidation Bond of Subsidiary Issues which the State shall deliver to the Bank in conformity with the transitory provisions relating to this law; and, ii) The shares of the present Central Bank of Guatemala which the State shall transfer to the Bank as initial contribution to the "Guar- 277 FOREIGN BANKING LAWS AND REPORTS The bank reserve shall equal at least the minimum amounts established by the Monetary Board, in conformity with the provisions of this law. The obligation to maintain bank reserves shall Liabilities-—Art. 59. The liabilities of the Bank extend to all banking institutions, national and of Guatemala shall be covered fully and exclusively foreign, which operate in the country, whether by the assets mentioned in the preceding article, private, mixed, or official. and shall include the following: Reserves against deposits in national currency— a) The monetary issue defined in Article 61 of Art. 64. The Monetary Board shall determine the minimum bank reserves which the banks must this law; b) The stabilization bonds, notes and certificates maintain with relation to their deposits in national currency, and to this end shall have authority: issued by the Bank; a) To determine, in a general and uniform c) The time deposits which the Bank may receive in accordance with the provisions of the manner, the reserves required to be held by the banks against such deposits, provided that the present law; d) The Exchange Revaluations Account which requirement shall be not less than 10 per cent nor may appear in accordance with Articles 12 and 13; more than 50 per cent for the various classes of e) The liabilities resulting from the Bank's deposits; and, b) To require the banks to maintain more than participation in international banking institutions 50 per cent reserves against any increase in deposits and from its credit operations abroad; above the amount outstanding at the time such f) The Guarantee Fund of the Bank; and, g) The other items resulting from operations measure should be adopted; in case of the imposition of such reserve requirements the Monetary provided for in this law. Board must order the payment of interest, at a rate not in excess of 3 per cent a year, on the Chapter II part of the required reserves which exceeds 50 per cent of the deposit obligations of the respective The Monetary Issue banks. Issue privilege—Art. 60. The Bank of Guatemala, Reserves against deposits in foreign currencies— in its capacity of sole issuer, shall be the only Art. 65. The Monetary Board may prohibit or entity which may issue notes and coin within the authorize the receipt of deposits in foreign curnational territory, and receive on deposit the reserves rencies by the banks. Whenever such authorizaof the banks. tion is given, the Board shall regulate the adminisMonetary issue—Art. 61. The monetary issue of tration of the deposits and determine what reserves the Bank of Guatemala shall consist of: shall be held against them; to this end, the Board a) The notes and coin of the Bank in actual shall have authority: circulation; and, a) To determine, in a general and uniform manb) The deposits of the State, official entities and ner, the reserves required to be held against such banks, with the Bank of Guatemala, payable upon deposits, provided that the requirement shall be simple presentation of checks. not less than 10 per cent nor more than 100 per cent, for the various classes of deposits, without The notes and coin in possession of the Bank obligation to pay interest to the banks on any part of Guatemala shall not be included in the monetary of such reserves; issue and shall not appear either in the assets or b) To determine the form and the currency, liabilities of the institution. either national or foreign, in which such reserves Art. 62. The functions and obligations of the shall be maintained by the banks; and, Bank of Guatemala with respect to the monetary c) Whenever the Board does not require reserves issue shall be governed by the pertinent provisions of 100 per cent against deposits in foreign exchange, of the Monetary Law, this law and the regulations it may demand that other assets be maintained of the Bank. in the currencies of the deposits, in order to equiliBan\ reserves—Art. 63. The banks shall have brate, as far as possible, the assets and liabilities in the obligation of maintaining constantly, in the such currencies. form of demand deposits in the Bank of Guatemala, a reserve proportional to their deposit obligations, The bank reserves and other assets in foreign which shall be denominated "bank reserves". currencies maintained by the banks against their antee Fund" and the "Fund for the Regulation of the Bond Market"; f) The other items resulting from operations provided for in this law. 278 FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS liabilities in foreign currencies in accordance with the regulations and decisions of the Monetary Board, shall be exempted from the prohibitions and restrictions issued against the holding of foreign exchange assets by the banks. Increase of reserves—Art. 66. Whenever it becomes advisable to increase bank reserves against deposit obligations, either in national or in foreign currencies, the Monetary Board shall decide the increases in a gradual and progressive manner, notifying the banks of any resolution which it adopts to this effect, with reasonable anticipation of the date at which it will become effective. Classification of deposits—Art. 67. With respect to constituting and maintaining bank reserves, the following definitions are established: a) For deposits in national currency: i) "Monetary deposits" arc those payable upon simple request of the depositor or creditor through presentation of checks; ii) "Short-term deposits" are those payable within a period not exceeding 30 days, or subject for their payment to previous notice not exceeding that period; iii) "Long-term deposits" are those payable only after 30 days, or subject for their payment to previous notice exceeding that period; iv) "Savings deposits' are those consisting of obligations payable on special conditions agreed upon with the depositor, or established by the laws regulating saving; b) For deposits in foreign currencies: i) "Short-term deposits' are those payable at any time not exceeding 30 days, or subject for their payment to previous notice not exceeding that period; ii) "Long-term deposits" are all those payable only after 30 days or more, or subject for their payment to previous notice exceeding that period. bank falls below the required reserves, it must be brought up to the proper level immediately. The Monetary Board shall organize and regulate the Clearing House and supervise its operation. Computation of reserves—Art. 70. The reserve position of each bank shall be computed monthly, on the basis of the amount of its reserves and deposits at the end of each day; but any bank shall normally be permitted to compensate for any deficiency in its reserves during one or more days of the month with its excess reserves in the other days of the same month. Nevertheless, in case of abuse, the Monetary Board may deny to any bank the privilege of compensating reserve deficiencies and excesses, and consider the sum of the daily deficiencies to be the monthly deficiency. All offices maintained in the national territory by a banking institution shall be considered as a single unit for the calculation of bank reserves. Penalties—Art. 71. Whenever there is a monthly deficiency in the reserves of any bank, calculated in accordance with the provisions of the preceding article, the Superintendent of Banks shall so advise the directors and managers of said bank in writing, and shall impose a fine of 1/10 of one per cent of the amount of the deficiency. If the deficiency persists for more than 12 months after the first written notice, the Monetary Board shall have authority to prohibit the bank from making new loans or investments and from paying dividends to its shareholders, until it has maintained reserves at the required level for at least a full month; and the deficient bank shall remain subject to the fines to be applied by the Superintendent of Banks in accordance with the preceding paragraph. If a deficiency persists for four consecutive months or occurs in six different months within a period of two years, the Monetary Board may request the competent judicial authorities to liquidate the deficient bank. Art. 68. The Monetary Board may, within the limits established in this law, determine different rates of bank reserves for the different classes of deposits defined in the preceding article. If it deems it advisable, the Board may also subject to reserve requirements any liability accounts similar to deposit liabilities, and determine the corresponding reserve requirements, within the limits established for deposits in national and in foreign currencies respectively. Clearing House—Art. 69. The reserves and other funds deposited by the banks in the Bank of Guatemala shall serve as a basis for a system of check settlement through a Clearing House. In the functioning of this system, when the deposit of any Chapter III External Monetary Stabilization Exchange stability—Art. 72. The Bank of Guatemala shall maintain the external value of the national currency, and assure its convertibility into foreign currencies in accordance with the system established in the Monetary Law. Monetary Stabilization Fund—Art. 73. In order to achieve the ends specified in the preceding Article, the Bank of Guatemala shall establish and maintain a "Monetary Stabilization Fund", in which shall be centralized and shall accumulate the international monetary reserves of the institution. MARCH 1946 279 FOREIGN BANKING LAWS AND REPORTS Net reserves—Art. 74. With relation to the reserves which make up the "Monetary Stabilization Fund" there shall be distinguished the concepts of "absolute reserves" and "net reserves". The absolute reserves shall consist of the aggregate assets in gold metal and foreign exchange in possession of the Bank of Guatemala. Net reserves shall be derived by deducting from the total assets in gold metal and foreign exchange the following obligations: a) The total amount of the Bank's gold and foreign exchange obligations falling due within 30 days; b) Seventy-five per cent of the Bank's gold and foreign exchange obligations falling due after 30 days, but within a year; c) Fifty per cent of the gold and foreign exchange obligations of the Bank falling due after one year but within three years; and 50 per cent of similar obligations of indefinite maturity; d) Twenty-five per cent of the gold and foreign exchange obligations of the Bank falling due after three years; e) The other obligations owed abroad, either by the Bank, or by third parties with the Bank's guarantee, in accordance with the percentages indicated above for obligations of corresponding maturities. tary Stabilization Fund shall be distributed in accordance with the following rules: a) Whenever the net reserves of the Fund do not exceed 40 per cent of annual average sales of exchange during the three preceding years, the Fund shall maintain its assets exclusively in: i) Gold metal deposited in the vaults of the Bank of Guatemala, or left in the custody of either international financial institutions or foreign central banks; or, ii) Demand deposits or equivalent first-class investments, disposable at par and at sight, at the simple request of the Bank, in the same institutions or in first-class foreign banks; or, iii) First-class drafts upon foreign countries, with maturities not in excess of seven days; or, iv) First-class official foreign obligations, disposable at any time in a constant market, and with maturities not in excess of three months; or, v) Notes and coin of other countries, up to the amounts required for current transactions in such notes and coin; b) Any reserves in excess of the 40 per cent mentioned above may be maintained in: i) The same forms specified in clause (a) of this article; or, ii) Time deposits in the institutions specified in clause (a), payable within a maximum period Distribution of reserves—Art. 75. The absolute of six months; or, reserves of the Monetary Stabilization Fund shall iii) First-class official foreign obligations, or be distributed between gold metal and the principal securities guaranteed by international agreements foreign currencies of recognized soundness which or by governments of recognized solvency, promost influence the balance of payments of the vided that their maturities do not exceed 12 country. months; This distribution shall be made in approximate proportion to the anticipated needs of the net c) Any reserves in excess of 75 per cent of the balance of international payments for each of the annual average of exchange sales during the three aforesaid currencies, taking into account the de preceding years may be maintained: facto convertibility, or inconvertibility, between gold i) In the same forms specified in clauses (a) metal and the various currencies. and (b) of this article; or, Investment of reserves—Art. 76. The investment ii) In time deposits in the institutions specified of the absolute reserves of the Monetary Stabilizain clause (a) of this article, payable within a tion Fund shall be in accordance with the followmaximum period of one year; or, ing objectives: iii) In first-class official foreign obligations, or in securities guaranteed by international agreea) To maintain the most absolute guarantee that ments or by governments of recognized solvency, the Bank of Guatemala shall always command the provided that their maturities do not exceed liquid assets which may be necessary to cover any five years. foreseeable deficit in the balance of payments^ and thus maintain the external convertibility and Art. 78. Whenever the net reserves of the Monestability of the currency; and, b) To avoid excessive and costly accumulation of tary Stabilization Fund exceed 75 per cent of the idle and sterile funds, without advantage to the annual average of exchange sales during the three preceding years, the Monetary Board shall national economy. have authority to invest, totally or partially, the Art. 77. In consequence, the assets of the Mone- excess reserves in the acquisition of regularly serv280 FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS iced obligations of the foreign debt of the Government of the Republic. In this case, the amount invested in the acquisition of these securities shall no longer be considered as international reserves, and shall not be included among the assets of the Monetary Stabilization Fund. Transactions with international and foreign ban\s—Art. 79. The Bank of Guatemala may transact business with international banking institutions, in accordance with the international agreements subscribed to and ratified by the Republic and with the legal provisions which may be enacted on the subject. Art. .80. The Bank of Guatemala may carry on, with other central banks and with first-class foreign banks, credit transactions as well as other operations characteristic of a central bank. Art. 81. The Bank of Guatemala may act, in all operations proper for a central bank, as agent or correspondent of other central banks, of international banking institutions and of first-class foreign banks, and may appoint such entities as its agents or correspondents abroad. Statistical information—Art. 82. The Director of the Exchange Department shall submit to the Monetary Board, in each ordinary session, a statistical summary of the movements of supply and demand in the foreign exchange market. Similarly, the Director of the Department of Economic Research shall submit to the Monetary Board, in the month of February of each year, a report containing estimates of the balance of payments for the coming year. These estimates shall be revised and rectified, at least every three months, in accordance with any new developments which may have appeared. Before the first of May of each year, the Director of the Department of Economic Research shall also present to the Monetary Board the final statement of the balance of payments of the preceding year. Temporary disequilibria in the balance of payments—Art. 83. The Bank of Guatemala shall utilize the reserves of the Monetary Stabilization Fund for the protection of the stability of the currency against temporary disequilibria in the balance of payments. Nevertheless, if international reserves fall in the proportion, or to the levels, indicated in the Monetary Law, the Monetary Board may petition the President of the Republic to institute the Emergency System of international transfers referred to in the same law. fundamental disequilibria in the balance of payments—Art. 84. In the case of a fundamental and persistent disequilibrium in the balance of payments related to disparities between domestic MARCH 1946 and external prices and production costs, the Monetary Board must adopt the measures appropriate to correct the disequilibrium and to re-establish the normal competitive position of the national producers in the domestic and international markets. The Monetary Board shall use to this end the powers accorded it by law to assure monetary stability, and, when such action is indispensable, shall request the modification of the gold parity of the national currency in conformity with the principles of the Monetary Law. In such case, the Monetary Board shall present to the Congress of the Republic and to the Executive Power, through the medium of the Ministry of Economy, a detailed report on the factors of disequilibrium, the measures of defense adopted, and the further legal, economic, fiscal or administrative measures which it considers advisable to recommend. Chapter IV Credit Operations Eligible operations—Art. 85. The Bank of Guatemala may conduct, exclusively with the banking institutions of the Republic, the following credit operations: a) Rediscount, discount, buy and sell bills of exchange, acceptances, promissory notes and other credit documents with maturities not beyond one year from the date of their acquisition by the Bank, and growing out of operations related to: i) The production or processing of agricultural, pastoral and industrial goods; ii) The importation, exportation, purchase or sale of readily salable goods or merchandise, or their transportation within the national territory; and, iii) The storing of nonperishable agricultural, pastoral and industrial goods, or of import or export merchandise, insured and deposited, under conditions assuring its preservation, in authorized general deposit warehouses or in other places approved by the Monetary Board; b) Grant advances for fixed periods, not to exceed one year, upon the following kinds of collateral: i) Gold coin or bars whose sale to the Bank of Guatemala has not been required by the Monetary Board, under the authority conferred to it by law; ii) The credit documents specified in clause (a) of this article; and, iii) Debtor balances of credits in current account related to the operations mentioned in clause (a) of this Article, and certified as to 281 FOREIGN BANKING LAWS AND REPORTS amount and liquidity by the manager and the accounting chief of the institution which solicits the advance; c) Grant advances, in periods of emergency which directly threaten monetary or banking stability, upon the guarantee of any other assets which the Monetary Board shall temporarily include as acceptable collateral; provided that this decision be adopted with the concurrent vote of at least five members of the Board; d) Rediscount, discount, buy and sell bills of exchange, acceptances, promissory notes and other credit documents, with maturities not beyond one year from the date of their acquisition by the Bank, and resulting from operations related to the granting of credits to the State and to public entities; and grant advances for fixed periods not exceeding one year on the collateral of such documents; always provided that the operations be legally authorized and guaranteed by the Government of the Republic. The total amount of funds invested by the Bank of Guatemala in the documents referred to in this clause, or in paper for which they are collateral, shall not exceed 10 per cent of the annual average of ordinary fiscal revenues received in cash by the National Treasury during the three preceding years; e) Grant credits and advances, for a period not exceeding one year, to finance purchases by the institutions which, in accordance with the laws, are placed in charge of the stabilization of the prices of produce and manufactured goods (buffer stocks). Such loans must be fully guaranteed by the State and secured by the goods purchased, which shall be deposited under insurance in authorized general deposit warehouses or in other places approved by the Monetary Board. The amounts due the Bank of Guatemala for such loans shall be repaid as rapidly as the products bought are sold; and the Bank of Guatemala itself shall intervene in the sales. Art. 86. The Monetary Board shall establish, within the general limitations provided for in this law, the other standards which shall govern the credit operations of the Bank of Guatemala. Similarly, the Board may, by specific action, further limit the maximum maturities mentioned in Article 85, and demand security margins between the value of the credits granted and the value of the collateral, in accordance with the various types of operations in which the credit originated. Rates—Art. 87. The Monetary Board shall determine the rediscount and interest rates applicable to the various credit operations authorized in this 282 law, taking into account the monetary situation, the needs of the market and the composition of the Bank's portfolio. Banking endorsement—Art. 88. The documents bought or accepted as collateral by the Bank of Guatemala must bear the endorsement of the institution from which they are received. Decision on credits—Art. 89. The Bank of Guatemala shall have complete independence in accepting or rejecting any request for credit presented to it. Procedures—Art. 90. Credit requests to the Bank shall be considered and decided upon by a Credit Committee. The Committee shall be composed of three members, who shall be the Manager and two other high officers of the Bank of Guatemala designated by the Monetary Board. Titular and alternate members of the Board may not serve on the Credit Committee. The Monetary Board shall determine the limits and conditions of the Committee's authority and shall impart to the Committee additional instructions for its guidance, in accordance with Article 86 of this law. Art. 91. The Committee shall examine the credit requests presented to it, and adopt its decisions with the affirmative vote of at least two of its members. All approvals of credits shall require the favorable vote of the Manager; but rejections may be adopted on the vote of the other two members. The credits granted by the Committee with the favorable vote of the Manager shall be acted upon without any other formality. Those denied by the Committee shall be submitted to the consideration of the Monetary Board if the Manager so decides, or if the institution interested in obtaining the credit so requests. Art. 92. The Monetary Board shall consider and decide individual credit requests only in the following cases: a) Requests related to credit operations of the State and of public entities; b) Other operations which by their amount or nature exceed the competence of the Credit Committee; c) When the Committee has refused the granting of credit. In these cases the Manager shall submit the matter to the Monetary Board through the medium of the President of the Bank and shall make such recommendations as seem appropriate. Liquidity of the Ban\ portfolio—Art. 93. The Monetary Board shall review monthly the composiFEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS tion of the portfolio of the Bank of Guatemala and, after examination of the situation of the monetary and credit market, shall issue the instructions which it deems appropriate in order to stabilize the market and to prevent excessive immobilization of the assets of the institution. Credits of the type authorized in clauses (a) and (b) of Article 85 shall not be granted for periods in excess of 120 days whenever the maturity of twothirds of the outstanding volume of credit previously granted in accordance with the same clauses is in excess of 120 days. Repayment of credits—Art. 94. The documents discounted, rediscounted or accepted as collateral by the Bank of Guatemala must be withdrawn by the borrowing institution at the dates of their maturities, through the payment of the respective credits, except that they may be withdrawn earlier, upon payment of the obligations which.they represent. Chapter V Internal Monetary Stabilization General criteria—Art. 95. The Bank of Guatemala shall promote the maximum development of the country's productive activities, and counteract or moderate fluctuations of a deflationary or inflationary character which may arise in the money and credit market. Art. 96. The Bank of Guatemala shall control any abnormal expansion or contraction of the money supply which threatens to cause harmful instability in internal prices and in the general economic activity of the country. The money supply is composed of: a) The national notes and coin in the hands of the public; and, b) Official and private monetary deposits outstanding in all the banks, excluding interbank deposits. Art. 97. When the money supply increases or decreases by more than 15 per cent within a period of 12 months, the Monetary Board must transmit to the Executive Power a detailed report showing: a) The external or internal factors causing such expansion or contraction; b) Its repercussions on monetary, exchange and credit conditions and on the level of employment, national production, prices and economic activities in general; c) The inflationary or deflationary symptoms which such an analysis may reveal in the different sectors of the economy; and, d) The measures adopted to combat the disMARCH 1946 turbances mentioned in the preceding clause, and the other legal, economic, fiscal or administrative measures which it considers advisable to recommend. The Board shall continue to inform the Executive Power periodically, and at least semi-annually, of the results achieved by the measures taken, until monetary disturbances have disappeared. Instruments of control—Art. 98. In the performance of its task of internal monetary stabilization, the Bank of Guatemala shall utilize especially the following instruments: a) The determination of its rediscount and interest rates, and the authority to accept or reject applications for credit presented to it (Articles 87 and 89); b) The influence which it may exercise over the banking system through: i) Establishment of minimum bank reserves (Articles 64, 65 and 68); ii) Regulation of the minimum proportions of capital and surplus which the banks must maintain in relation to their active operations, in accordance with the provisions of the general banking law; iii) Establishment of the maximum rates of interest provided for in Articles 99 through 101; and, iv) Control of the issues of obligations by the banks, and restrictions upon the granting of bank credit as provided for in Articles 102 and 103; c) The guidance of the general policy of banking institutions of an official or semi-official character (Article 30, clause m); d) The intervention in the open market, through the purchase, sale or retirement of Stabilization Bonds issued by the Bank, and the negotiation of securities issued by other entities (Articles 104 and 108); e) The acceptance and repayment of the time deposits which the Bank may receive (Article 109); f) The management of the Fund for the Regulation of the Bond Market, and of official deposits (Articles 114 and 118); g) The intervention of the Board in credit operations of the State and of public entities, and its functions as advisor and fiscal agent of the Government (Article 123); and, h) The other powers conferred on it by this law, the Monetary Law and other pertinent provisions. Maximum interest rates—Art. 99. The Monetary Board shall determine the maximum rates which 283 FOREIGN BANKING LAWS AND REPORTS the banks may charge for different types of loans and for any other active credit operations. When the Monetary Board deems it advisable, however, it may abstain from fixing maximum rates on specific classes of active credit operations, and leave the matter to the discretion of the banks. Nevertheless, in case of such abstention, the Monetary Board may establish the maximum difference which may exist between the rediscount or interest rates of the Bank of Guatemala, and the rates which may be charged by the banks for different types of credits, if the respective credit documents are not to lose their eligibility for rediscount or advances at the Bank of Guatemala. Any bank which grants loans, or effectuates other active credit operations, at rates of interest exceeding the maximum rates fixed by the Monetary Board in accordance with the first paragraph of this article, shall be subject to the penalties provided for in the laws against usury. Art. 100. The Monetary Board shall determine the maximum rates which the banks may establish or pay to their clients upon the various classes of deposits, issue of obligations and any other passive credit operations. When the Monetary Board deems it desirable, it may abstain from fixing maximum rates on specific classes of passive credit operations, and leave the matter to the discretion of the banks. If a bank engages in passive credit operations on which it establishes or pays interest in excess of the maximum rates fixed by the Monetary Board in accordance with the first paragraph of this article, the Bank of Guatemala shall advise the Ministry of Economy, in order that the Ministry may fine the guilty bank up to five times the amount of the excessive interests established or paid. Art. 101. Any change which the Monetary Board may decree with respect to maximum rates for the active and passive operations of the banks, shall govern only future operations, and shall not apply to those effectuated prior to the effective date of the change. Limitation on security issues—Art. 102. The Monetary Board may, if it deems it essential to prevent excessive security issues, subject to previous authorization by the Bank of Guatemala the issue of securities or other obligations by the banks, taking into consideration the economic and monetary situation of the country and the absorption capacity of the market. Selective control—Art. 103. The Monetary Board shall restrict the granting of bank credit for speculative purposes, and shall encourage a distribution of credit conforming to the general interests of the national economy, using to this end the powers 284 expressly granted by the laws as well as other provisions of a general character. In case of a pronounced inflationary trend in bank credit, the Monetary Board may, with the concurrent vote of four of its members, through the establishment of ceilings on bank portfolios, limit in a general manner and without discrimination, the maximum volume of bank loans. Such ceiling may not be maintained for more than a year, except in cases of exceptional gravity and by unanimous vote of the members of the Monetary Board. Open mar\et operations—Art. 104. Intervention of the Bank of Guatemala in the open market shall be exercised through the purchase and sale of securities defined as eligible by the present law, and issued either by the Bank of Guatemala itself or by other entities. Such operations shall be directed toward stabilizing the money market, through the temporary withdrawal from circulation of excess funds exerting inflationary pressures upon the economy, and the placement of additional funds in circulation whenever desirable to combat deflationary tendencies. Art. 105. For purposes of monetary stabilization, the Monetary Board may order the issue by the Bank of Guatemala of freely negotiable credit obligations, denominated "stabilization bonds". The Monetary Board shall determine: a) The interest rates to be earned by such bonds; b) The maturity dates; c) The conditions under which they shall be repaid, and the manner in which the Bank may effect extraordinary amortization; and, d) The currency in which they shall be exchanged and paid, the Board being allowed to contract the obligation in gold or foreign exchange when circumstances so advise. The Bank of Guatemala may repurchase its stabilization bonds, either in the market at a price not less than their face value, or through redemption at par and by lot if the Bank has reserved the right to effect extraordinary amortization. Art. 106. The stabilization bonds acquired, amortized or redeemed by the Bank of Guatemala, ordinarily or extraordinarily, shall be immediately retired and shall no longer be considered assets of the institution. Interests due and bonds not presented for payment within 10 years from the date at which they become payable shall be cancelled in favor of the Bank of Guatemala. Art. 107. As long as the net reserves of the Monetary Stabilization Fund exceed 25 per cent of the annual average of exchange sales during the FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS three preceding years, the Bank of Guatemala may acquire for its own account: a) Bonds or obligations legally issued or guaranteed by the Government or by public entities; b) Bonds or obligations legally issued by official or semi-official financial institutions; c) Other first-class national bonds or obligations, defined as eligible by the vote of at least five members of the Monetary Board. nating in the inflow of foreign exchange, or to promote their investment in noninflationary operations, or to secure their absorption through fiscal provisions directed toward social improvements. Chapter VI Relations with the State Functions—Art. 111. The Bank of Guatemala shall exercise the functions of advisor, fiscal agent The bonds or obligations issued or guaranteed and banker of the State. by the State or by public entities must be of a gradFund for the regulation of the bond market— ual and cumulative amortization, not to extend Art. 112. As agent of the State, the Bank of Guateover a period exceeding 10 years. The Monetary mala shall form a "Fund for the Regulation of the Board must make sure that such bonds and obli- Bond Market". gations have been issued in accordance with a fiThis fund shall be administered by a "Security nancial plan adapted to the possibilities of meeting Commission", composed of the President and Manathe service of the debt; and shall attend to the in- ger of the Bank and the Ministers of Finance and clusion in the respective budgets of the assignments Economy. The resolutions of the Commission shall necessary to secure the fulfillment of these obliga- be adopted by concurrent vote of at least three of tions. its members. Art. 108. The purchases of bonds and obligations Art. 113. The Fund for the Regulation of the referred to in the preceding article shall be adjusted Bond Market shall consist of: to. the situation of the money market, so to maina) The amounts initially contributed for its contain the money supply at normal and noninfla- stitution by the State, in accordance with the transitionary levels. tory provisions related to this law; The Bank of Guatemala shall especially use such b) Other contributions of the State in conformity purchases to combat movements of a deflationary with special laws or through budgetary assignments; character. When inflationary tendencies exist, the c) The net profits of the Bank of Guatemala, Bank shall be under obligation to contract its hold- which, in accordance with Article 11 of this law, ings of such securities, through sales to the public are earmarked for the increase of the Fund; and, or through regular or extraordinary amortization. d) Idle funds resulting from budgetary surTime deposits—Art. 109. When inflationary ten- pluses, or unused balances of the National Treasury dencies exist, the Monetary Board may authorize which may be temporarily included in the resources the acceptance by the Bank of Guatemala of private of the Fund by decision of the Monetary Board, time deposits. In case of such action, the Board with the favorable vote of the Minister of Finance. shall determine at the same time the interest rates, maturities and other pertinent conditions. Such Art. 114. The administration and investment of authority shall be cancelled as soon as the inflation- the resources of the Fund for the Regulation of the Bond Market shall be directed toward the stabiary danger has passed. Actual operations of receipt and withdrawal of lization of the quotations on securities issued or the deposits may be made through the medium of guaranteed by the State or by public entities, and banks authorized and qualified for the purpose of such other official or semi-official obligations as by the Monetary Board; but the funds deposited may be decided upon by the Security Commission. Such stabilization shall be accomplished through may not be maintained in the banks and must be credited immediately to the Bank of Guatemala, the purchase and sale of these bonds and obligations in the open market, with avoidance of any interwhich shall be responsible for their repayment. Inflationary inflows of foreign exchange—Art. vention which would run counter to fundamental 110. In periods of excessive inflows of foreign ex- trends of the market and threaten the exhaustion change of an inflationary character, if it is not of the Fund's resources. Art. 115. The profits realized through the investpossible for the Bank to reduce the money supply to normal levels through the use of its ordinary in- ments of the Fund for the Regulation of the Bond struments of monetary policy, the Board shall re- Market, either from purchase and sale operations quest the Executive Power to propose to the Con- or through the receipt of interest on bonds and gress of the Republic the adoption of legal measures obligations acquired, shall accrue to the Fund itself, tending either partially to sterilize the funds origi- in order to increase its resources and capacity for MARCH 1946 285 FOREIGN BANKING LAWS AND REPORTS action and to accumulate reserves to cover possible losses in future operations. Official banking operations—Art. 116. The Government of the Republic and, in general, all agencies of the State, shall effect all their remittances, exchange and monetary transactions, within the country as well as abroad, through the medium of the Bank of Guatemala. Official deposits—Art. 117. The cash balances of the National Treasury, of public entities and of other official agencies shall be deposited in the Bank of Guatemala, with the exception of the amounts handled in the offices themselves, in conformity with the law, for payments of small amount. Trust deposits in favor of the State, or any of its agencies, as well as all classes of judiciary deposits, shall also be made in the Bank of Guatemala. The Bank of Guatemala may accept the custody of securities, documents and other valuable objects belonging to the State or its agencies. Art. 118. The Monetary Board may, with the favorable vote of the Minister of Finance, and depending on the line of action which the monetary, exchange and credit situation makes advisable: a) Maintain official deposits in one or more banks of the country, or keep them temporarily sterilized in the Bank of Guatemala; and, b) Invest idle amounts in foreign exchange, or in foreign securities of the types mentioned in Article 77, or in national bonds or obligations, through their temporary inclusion in the Fund for the Regulation of the Bond Market, in accordance with Article 113 of this law. Guatemala shall charge for the services which it renders the State and its agencies the rates and commissions agreed upon with the respective authorities. The Bank shall not pay interest upon Government deposits nor upon deposits of public entities. Financial advice—Art. 123. Whenever the Government of the Republic intends to effectuate any credit operation abroad, the Minister of Finance shall request the opinion of the Monetary Board before deciding on the operation. Similar advice must also be requested by all official institutions for their credit operations abroad. The advice of the Board shall be based on the gold and foreign exchange resources and obligations of the country, and on the incidence of the contemplated operation upon the balance of payments and the volume of the money supply. Whenever the Government of the Republic or official institutions intend to contract loans within the country itself, they shall also request the previous advice of the Monetary Board, in order that the Board may communicate its opinion on the advisability of the project and coordinate its monetary and credit policy with financial and fiscal policy. Title V Balances and Publications Balances—Art. 124. The Bank shall prepare and publish, within the first eight days of each month, a general balance sheet showing the statement of its assets and liabilities as of the last business day of the- preceding month. Similarly, the Bank shall publish monthly a table of the money supply of the Fiscal operations—Art. 119. The bank of Guate- country and a summary of all balances of the other mala shall open a general cash account for the banks, presenting summary consolidated figures National Treasury, in which all liquid funds of the under the various accounting classifications. These data shall be published in the official gazette, Government of the Republic shall be deposited. Transfers of funds from this account to other and in special bulletins. secondary accounts shall be made only by order of Financial year—Art. 125. The financial year of the competent officer of the National Treasury, the Bank of Guatemala shall be the calendar year. with the approval of the Court of Accounts. Annual Report—Art. 126. Before May 31 of each Art. 120. The Bank of Guatemala may take year the Bank of Guatemala shall publish an Ancharge of the collection of public revenues, directly nual Report containing: or indirectly, in accordance with such agreements a) An analysis of the financial situation of the as it may conclude with the Government of the Re- institution and of its operations during the past public. year; Such funds shall be collected for the account and b) A report and analysis of the monetary, finanat the risk of the Bank of Guatemala, and shall be cial and economic events of importance to the coundeposited in the general cash account of the Na- try; and, tional Treasury. c) The information necessary to explain the Art. 121. In the execution of fiscal operations monetary, credit and exchange policy of the Bank. for the State, the Bank of Guatemala may use the Art. 127. The Annual Report shall include, in services of one or more banks maintaining branches or agencies in the departments of the Republic. appendices, pertinent tables and graphs, and espeRemuneration of sen/ices—Art. 122. The Bank of cially: 286 FEDERAL RESERVE BULLETIN FOREIGN BANKING LAWS AND REPORTS a) The monthly movement of the money supply, distinguishing between: i) Notes, coin and official and private deposits of monetary character; ii) That part of the money supply attributable to external factors, and that part which corresponds to internal monetary creation by the Bank of Guatemala and the other banks; iii) The various factors of expansion and contraction which have determined the internal monetary creation; b) The final statement of the balance of payments for the past year, the net inflow or outflow of international reserves, and the monthly movement of exchange rates; c) Price indexes for both the Republic and the principal foreign countries of importance to Guatemala as purchasers, sellers or competitors; and the comparative price movements of the principal national export products; d) The monthly movement, in summary, of exports and imports, by volume and value; e) The principal data on receipts and expenditures of the public Treasury, and on the national debt, both internal and external; f) The monthly movement, in condensed form, of the accounts of the Bank of Guatemala and of the other banks, according to the groupings and classifications which the Manager of the Bank shall determine, in agreement with the Director of the Department of Economic Research and the Superintendent of Banks, and with the approval of the Monetary Board; g) A list of the stabilization bonds matured or called in the past 10 years, but not yet presented for payment; and, h) The text of important legal or administrative provisions adopted during the preceding year which relate to the functions of the Bank of Guatemala. Art. 128. The balances, accounts and statements of the Bank of Guatemala shall be signed by the officers responsible for their preparation and, in addition, by the President and the Manager of the Bank. Other publications—Art. 129. The Bank of Guatemala shall publish, in periodicals having wide circulation within the country, and preferably in the official gazette: a) The resolutions establishing or modifying the minimum rediscount rates of the Bank of Guatemala, and the maximum rates upon active and passive operations of the banks; b) The resolutions establishing or modifying the minimum bank reserves and regulating the clearing system; and, MARCH 1946 c) The provisions of general character applicable to exchange and banking activities, adopted by the Bank of Guatemala under the authority conferred on it by law for the regulation of currency, credit and exchange. The provisions referred to in this article shall become effective on the dates established for their application, which dates may never be prior to the date of their publication. Title VI General Provisions Injunctions—Art. 130. The Bank of Guatemala is forbidden to: a) Rediscount, discount, buy and sell credit documents at charge of: i) The titular or alternate members of the Monetary Board; the Manager, officers or employees of the Bank of Guatemala, their wives, and their minor children; ii) The President of the Republic, the Ministers of State, the secretaries of the Presidency, their wives, and their minor children, and the firms or companies in which the persons referred to in this clause hold participation or interest, with the exception of the banking institutions operating within the country; b) Grant extensions, renewals, or substitutions of the credit documents acquired by the Bank, or of the advances and loans made by it, except in special cases, upon determination by the Monetary Board; in such cases the Board may extend the obligation once only, and for a period not to exceed one-half of its original period. Exception shall be made for credits granted for the financing of operations of price stabilization in accordance with Article 85, clause (e), of this law;' c) Effect any operations not authorized by this law or by the Monetary Law, except those which, though not prohibited, are compatible with its central banking character and necessary for the fulfillment of its duties and functions. The members of the Monetary Board, officers and employees of the Bank of Guatemala, who authorize, or acquiesce in, any prohibited operation shall be removed from their positions; in addition, they shall be held personally and jointly responsible for any harm or damage their action has caused. Tax exemptions—Art. 131. The Bank of Guatemala shall be exempt from all kinds of taxes, rates and assessments, fiscal or municipal, now in force or to be established in the future. The preceding exemptions cover all movable or 287 FOREIGN BANKING LAWS AND REPORTS immovable property of the Bank of Guatemala, its resources, profits and income of every kind, as well as all kinds of deeds, contracts, and business which it may transact; but they shall apply only to taxes for which the Bank itself is liable, and not to taxes payable by individuals who negotiate or contract with the institution. Art. 132. The Bank of Guatemala shall be fully exempt from custom duties for the import and export of gold and metals used in monetary coinage, and for the importation of all equipment needed for the organization, installation and functioning of its offices. The exemptions granted in the preceding paragraph shall be subject to the procedure established by the laws of the Republic, and the importing and exporting shall be effected with complete freedom from fiscal and consular duties, as well as from any other assessments, taxes, rates and surcharges related to the import or export of the merchandise, or collected by reason thereof. Notwithstanding the exemption from import duties, the Bank of Guatemala shall give preference to national products when they can be obtained under conditions equal to those applying to imports. Amendments—Art. 133. Amendments to the present law shall require for their approval the favorable vote of two-thirds of the representatives composing the Congress of the Republic. Abrogation of laws in conflict with present law— Art. 134. Decree No. 67 of the Revolutionary Council of Government is hereby abrogated, together with all laws, decrees, resolutions and provisions contrary to the present law. Transitory provisions—Art. 135. The notes issued by the Central Bank of Guatemala and the national 288 coin which form the present monetary circulation of the Republic shall continue with their same value, and shall circulate legally with unlimited legal tender, as long as they are not legally replaced by the notes and coin to be issued by the Bank of Guatemala. Art. 136. A special law shall establish the transitory provisions relating to the organization of the Bank of Guatemala and to the transfer in its favor of the monetary functions in charge of the present Central Bank of Guatemala. Art. 137. The present law shall become effective 10 days after its publication in the official gazette. Nevertheless, the provisions granting attributions, powers and functions to the Bank of Guatemala and to the Monetary Board shall enter into force three days after the resolution in which the Executive Power shall declare the Bank of Guatemala to be established. The present decree shall be sent to the Executive Power for its publication and enforcement. Given in the Congressional Palace of the Republic: in Guatemala City, on the eleventh of December, nineteen hundred and forty-five, second year of the Revolution. JULIO BONILLA G. President E. ZEA GONZALEZ JULIO VALLADARES C. Secretary Secretary National Palace: Guatemala City, twentieth of December, nineteen hundred and forty-five. Publish and execute. J U A N JOSE AREVALO. The Minister of State for Economy and Labor M. NORIEGA M. FEDERAL RESERVE BULLETIN NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled February 26, and released for publication February 28] Output at factories declined further in January and the early part of February owing to work stoppages. Production and employment in most nonmanufacturing lines, however, continued to advance and the value of retail trade was maintained considerably above last year's level. INDUSTRIAL PRODUCTION Wage disputes sharply reduced output in the iron and steel and electrical machinery industries during January and the early part of February. These decreases were oflset in part by increased output in most other manufacturing lines and in mining. The Board's index of total industrial production was at a level of 159 per cent of the 1935-39 average in January, as compared with 164 in December. Steel mill operations, which averaged 83 per cent of capacity in the first three weeks of January, dropped to around 6 per cent during the succeeding four weeks. Since settlement of the wage dispute in the steel industry, output has recovered sharply and during the last week of February operations were scheduled at 59 per cent of capacity. Activity in machinery industries declined about 5 per cent in January, mainly because of work stoppages in plants of leading electrical equipment producers after January 15. Output of most other types of machinery continued to increase. Activity in the automobile industry rose in January, even though plants of the leading producer remained closed by a labor-management dispute. About twice as many automobiles and trucks were assembled in January as in December. Passenger car assemblies were at an anuual rate of 700,000 cars which, however, was only about one-fifth of the 1941 rate. Lumber production rose, considerably in January and there were substantial increases in output of most other building materials from previous low levels. Production gains were also recorded in January at textile and paper mills, at printing and publishing establishments, and in the furniture, tobacco, chemical, and rubber products industries. Output of minerals rose 5 per cent in January, reflecting large increases in output of anthracite and bituminous coal and a small gain in production of crude petroleum. Coal production in January and the first part of February was at a rate about 8 per cent above a year ago. EMPLOYMENT Employment at trade establishments in January showed a much smaller decline than is usual after the Christmas season and employment in most other industries continued to advance. Construction EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS MILLIONS OF PERSONS MILLIONS OF PERSONS INDUSTRIAL PRODUCTION PHYSICAL VOLUME SEASONALLY ADJUSTED, 1935-39-100 260 - V- f - / - 240 \ A - 1940 1941 1942 1943 1944 1945 Federal Reserve index. Monthly figures, latest shown are for January. MARCH 1946 Bureau of Labor Statistics monthly estimates, adjusted for seasonal variation by Federal Reserve. "Other" group includes transportation, public utilities, finance, service and miscellaneous industries. Proprietors and domestic workers are not included in these estimates. Latest figures shown are for January. 289 NATIONAL SUMMARY OF BUSINESS CONDITIONS employment in January was double the level in the same month last year, and, following large increases since last autumn, employment in the trade, finance, service, and miscellaneous industries was substantially larger than a year ago. Employment at factories was about one-fifth lower than at the beginning of 1945 as reductions in munitions employment was only partly offset by increases in other employment. Unemployment rose somewhat further by the middle of January to a level of 2,300,000 persons. DISTRIBUTION Value of department store sales in January was 15 per cent above last year and in the first half of February the increase was larger. Retail sales at stores selling furniture, building materials, and other durable goods were from 25 to 40 per cent above a year ago in January and the total value of retail trade since the first of the year has been about one-fifth higher than during the same period last year. Railroad freight traffic was reduced from the middle of January to the middle of February owing mainly to the work stoppage in the steel industry. Shipments of agricultural commodities, coal, and general merchandise, however, remained at high levels. COMMODITY PRICES Federal price policies were modified in the middle of February to permit increases in ceilings made necessary by Federally approved wage-rate BANK CREDIT Treasury deposits increased by more than one billion dollars in the five weeks ending February 20, reflecting large Treasury tax receipts, reduced expenditures, and sales of savings bonds and tax savings notes in excess of securities redeemed. Deposits, other than Government and interbank, showed little change during this period, in contrast to developments in former post-drive periods when funds were shifted rapidly from Treasury balances to accounts of businesses and individuals. Bank loans made for purchasing and carrying Government securities were further reduced, while commercial, industrial, and agricultural loans continued to increase. Banks continued to increase their holdings of Government securities, purchasing bonds in the market and Treasury certificates from the Federal Reserve Banks. Nonreporting banks drew upon their balances with city correspondents to increase their loans and investments. City banks met this and other drains in part by selling bills to the Reserve Banks. MEMBER BANKS IN LEADING CITIES COST OF LIVING 1935 -39-100 PER CENT advances and sellers now may ask for immediate price relief rather than waiting six months. Accompanying this action steel prices were raised by 8 to 9 per cent. Ceiling prices for a number of other manufactured products, including certain foods, cotton goods, paper, and lumber, have also been increased in recent weeks. PER 160 AxF00D f \ /N-/ 1 ^ L L V T B /IS 120 110 ^ \ - RENT — 100 80 1939 1940 1941 Bureau of Labor Statistics' indexes. Last month in each calendar quarter through September 1940, monthly thereafter. Mid-month figures, latest shown are >for January. ' 290 Demand deposits (adjusted) exclude U. S. Government and interbank deposits and collection items. Government securities include direct and guaranteed issues. Wednesday figures, latest shown a r e tor * e b - 20- FEDERAL RESERVE BULLETIN FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS UNITED STATES Member bank reserves, Reserve Bank credit, and related items Federal Reserve Bank discount rates; rates on industrial loans, guarantee fees and rates under Regulation V; rates on time deposits; reserve requirements; margin requirements. . Federal Reserve Bank statistics. . Guaranteed war production loans. . . Deposits and reserves of member banks. Money in circulation Gold stock; bank debits and deposit turnover Deposits and currency; Postal Savings System; bank suspensions. . All banks in the United States, by classes All insured commercial banks in the United States, by classes. Weekly reporting member banks . Commercial paper, bankers' acceptances, and brokers' balances. . Money rates and bond yields. . . Security prices and new issues... Corporate earnings and dividends. Treasury finance Government corporations and credit agencies. Business indexes .... Department store statistics. . Consumer credit statistics. . Wholesale prices Gross national product, national income, and income payments. Current statistics for Federal Reserve chart book. 293 294-295 295-299 299 299-300 301-302 302 303 304-305 306-307 308-311 312 313 314-315 316 317-319 320 321-330 331-333 334-335 336 337 338-339 Tables on the following pages include the principal available statistics of current significance relating to financial and business developments in the United States. The data relating to the Federal Reserve Banks and the member banks of the Federal Reserve System are derived from regular reports made to the Board; index numbers of production are compiled by the Board on the basis of material collected by other agencies; figures for gold stock, money in circulation, Treasury finance, and operations of Government credit agencies are obtained principally from statements of the Treasury, or of the agencies concerned; data on money and security markets and commodity prices and other series on business activity are obtained largely from other sources. Back figures for banking and monetary tables, together with descriptive text, may be obtained from the Board's publication, Banking and Monetary Statistics; back figures for most other tables may be obtained from earlier BULLETINS. MARCH 1946 291 MEMBER BANK RESERVES AND RELATED ITEMS WEDNESDAY FIGURES BILLIONS OF DOLLARS BILLIONS OF DOLLARS 30 30 25 20 15 10 1939 1940 1939 1940 1941 1942 1943 1944 ' 1945 1946 1941 1942 1943 1944 1945 1946 Wednesday figures, latest shown are for Feb. 20. 292 See p. 293. FEDERAL RESERVE BULLETIN MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS [In millions of dollars] Member bank reserve balances Reserve Bank credit outstanding U. S. Government securities Discounts and advances Total Date Monthly averages of daily figures: 1944—Nov Dec 1945—Jan Nov Dec 1946—Jan 436 265 118 636 381 232 End of month figures: 1944—Nov. 3 0 . . . Dec. 31. .. 1945—Jan. 3 1 . . . Nov. 3 0 . . . Dec. 3 1 . . . 1946—Jan. 3 1 . . . Treasury bills and certificates All other 2,354 2,798 2,770 2,943 3,059 2,443 Gold stock All other 1 Total TreasTreasury deury Money Treas- posits curury with rency in cir- cash Federal culaoutholdtion Restandings serve ing Banks Other FedNoneral memReber de- serve posits accounts Total Excess2 19,009 20,708 19,612 20,657 19,387 20,582 24,389 20,033 24,744 20,047 24,298 20,106 4,116 4,125 4,129 4,290 4,322 4,375 24,738 25,207 25,243 28,151 28,452 28,158 2,340 2,355 2,371 2,268 2,269 2,265 262 666 532 419 625 648 1,579 1,595 1,501 1,347 1,247 1,282 395 403 403 485 493 505 14,520 14,168 14,048 16,043 16,027 15,921 473 18,388 16,031 2,357 80 18,846 16,035 2,812 176 19,006 16,272 2,734 775 23,472 20,393 3,079 249 24,262 21,196 3,067 294 23,264 20,913 2,352 496 19,357 20,688 819 20,619 370 19,552 20,550 450 20,030 580 20,065 418 23,976 20,156 4,122 4,131 4,127 4,303 4,339 4,406 25,019 25,307 25,290 28,211 28,515 27,917 2,327 2,375 2,371 2,239 2,287 2,293 138 440 648 866 977. 845 1,561 1,598 1,634 1,209 1,308 1,295 395 402 402 483 495 506 14,728 ,124 14,373 ,625 13,884 869 16,022 1,024 15,915 1,471 15,682 1,089 Wednesday figures: 1945—Apr. 4 . . . Apr. 11. .. Apr. 1 8 . . . Apr. 2 5 . . . 220 19,580 323 20,091 341 20,153 508 20,444 17,414 17,975 18,037 18,331 2,167 2,116 2,116 2,113 455 349 478 358 20,255 20,418 20,763 20,417 - --- 20,396 21,310 20,374 4,117 4,118 4,117 4,120 25,865 25,939 26,068 26,074 2,379 2,364 2,374 2,371 335 1,420 409 1,553 430 ,594 651 ,563 438 439 437 437 14,353 14,593 14,582 14,708 May 2 . . . May 9 . . . May 1 6 . . . May 2 3 . . . May 3 0 . . . 569 20,479 552 20,720 487 20,668 724 20,929 886 21,023 18,374 18,617 18,555 18,809 18,891 2,104 2,103 2,113 2,120 2,132 358 318 432 327 349 21,406 20,374 20,352 21,587 20,351 21,980 20,271 22,258 20,270 4,130 4,132 4,137 4,142 4,141 26,204 26,312 26,372 26,399 26,500 2,382 2,384 2,376 2,319 2,315 423 447 102 526 426 ,571 ,463 ,541 ,592 ,619 438 L4.892 927 439 15,029 961 _.. 438 15,246 1,045 440 15,117 866 439 15,371 1,113 June 6 . . . June 13. . . June 20. .. June 27. .. 912 85: 307 203 20,896 21,103 21,507 21,693 18,126 18,323 18,710 18,896 2,771 2,780 2,797 2,797 398 392 473 315 22,207 20,268 22,347 20,268 22,287 20,265 22,211 20,263 4,145 4,146 4,145 4,144 26,513 26,533 26,536 26,628 2,314 2,292 2,297 2,314 352 170 347 687 ,546 ,550 ,710 ,774 443 444 452 454 15,452 15,771 15,354 14,760 July 3 . . . July 1 1 . . . July 1 8 . . . July 2 5 . . . 39 73 126 229 21,745 21,544 21,613 21,570 18,948 18,747 18,816 18,771 2,798 2,798 2,798 2,799 464 411 430 331 22,249 20,213 22,028 20,214 22,170 20,213 22,129 20,212 4,145 4,145 4,144 4,144 26,834 26,932 26,901 26,926 2,285 2,230 2,274 2,279 667 1,647 585 1,617 690 ,553 594 ,539 450 453 450 450 14,722 1,408 14,570 1,136 14,660 1,048 14,699 994 Aug. 1 . . . Aug. 8 . . . Aug. 1 5 . . . Aug. 2 2 . . . Aug. 29. .. 399 353 312 400 44: 21,877 21,910 21,869 22,296 22,358 19,066 19,099 19,058 19,466 19,516 2,811 2,811 2,811 2,829 2,841 288 342 601 447 263 22,564 20,152 22,606 20,151 22,782 20,130 23,142 20,088 23,063 20,088 4,198 4,197 4,198 4,201 4,215 27,130 27,269 27,351 27,506 27,600 2,260 2,269 2,257 2,248 2,262 678 538 398 671 397 ,532 ,588 ,643 ,557 ,577 454 457 458 458 458 14,861 14,833 15,004 14,992 15,070 Sept. 5... Sept. 12... Sept. 19. .. Sept. 26... 377 22,435 45' 22,808 301 22,965 422 23,186 19,670 20,014 20,116 20,306 2,765 2,795 2,850 2,880 380 412 441 285 23,192 20,088 23,677 20,096 23,707 20,095 23,892 20,093 4,216 4,216 4,222 4,222 27,750 27,793 27,777 27,729 2,269 2,267 2,268 2,263 304 598 428 961 ,529 ,538 ,525 ,506 463 465 475 475 15,180 966 15,329 964 15,552 1,039 15,274 893 Oct. Oct. Oct. Oct. Oct. 314 23,212 313 23,272 316 22,901 389 23,089 439 23,276 20,297 20,357 19,985 20,192 20,379 2,916 2,916 2,916 2,898 2,898 294 338 482 312 272 23,821 20,072 23,923 20,040 23,699 20,039 23,790 20,038 23,987 20,036 4,248 4,257 4,262 4,270 4,278 27,853 27,962 27,952 27,974 28,049 2,249 2,248 2,244 ,268 ,282 648 535 293 295 429 ,469 ,419 ,324 ,349 ,373 484 485 482 482 483 15,420 15,537 15,700 15,751 15,723 Nov. 14. .. Nov. 21. .. Nov. 28... 508 23,076 596 23,448 630 23,343 792 23,646 20,179 20,510 20,372 20,627 2,898 2,938 2,970 3,019 292 455 359 326 23,877 20,035 24,498 20,034 24,331 20,032 24,764 20,031 4,285 4,284 4,297 4,297 28,137 28,178 28,198 28,169 2,268 2,265 2,272 2,269 261 580 410 557 ,310 ,313 ,360 ,351 484 486 484 485 15,737 928 15,994 1,163 15,937 1,043 16,261 1,293 Dec. 5... Dec. 12. .. Dec. 19... Dec. 26... 345 23,525 312 23,493 360 23,668 492 24,037 20,474 20,440 20,602 20,970 3,052 3,053 3,067 3,067 359 460 829 643 24,229 20,029 24,264 20,045 24,859 20,066 25,172 20,065 4,303 4,317 4,326 4,334 28,279 28,370 28,557 28,649 2,242 8 627 718 1,199 ,304 ,204 ,284 ,282 487 488 496 500 16,242 15,669 15,906 15,658 ,594 ,296 ,332 ,213 1946—Jan. 2... Jan. 9... Jan. 16... Jan. 23... Jan. 30... 222 24,092 215 23,859 210 23,437 207 23,341 310 23,297 21,602 21,377 21,030 20,968 20,945 2,490 2,482 2,407 2,373 2,352 533 463 426 373 291 24,847 20,065 24,536 20,046 24,072 20,111 23,922 20,135 23,898 20,157 4,352 4,362 4,377 4,385 4,404 28,491 28,297 28,119 27,977 27,914 2,306 771 ,299 758 ,307 272 ,257 578 .239 762 1,298 498 505 505 506 507 15,900 15,822 16,145 15,859 15,681 ,439 ,266 ,423 .169 ,061 Feb. 6... Feb. 13... Feb. 20... 289 23,227 411 23,253 352 23,017 20,876 2,352 20,904 2,349 20,692 2,326 4,413 27,929 4,424 27,967 4,434 27,955 2,306 2,301 2,318 716 1,226 864 1,173 940 1,235 516 15,717 Pl.224 516 15,693 P 1 , 2 3 8 516 15,490 Pl.056 3... 10... 17... 24. .. 31... Nov.* 7... 18,129 15,775 18,693 15,895 18,726 15,956 23,333 20,390 23,708 20,649 23 ,590 21,147 445 654 543 420 654 476 324 23,840 20,157 270 23,933 20,157 417 23,787 20,233 2,283 ,023 ,284 ,114 ,167 ,498 ,311 934 946 806 835 1,098 1,237 1,454 1,362 1,063 1,066 1,132 1,018 986 1,001 1,027 1,032 1,002 904 P Preliminary. Includes industrial loans and acceptances purchased shown separately in subsequent tables. End of month and Wednesday figures are estimates. Back figures.—See Banking and Monetary Statistics, Tables 101-103, pp. 369-394; for description, see pp. 360-366 in the same publication. 1 2 MARCH 1946 293 FEDERAL RESERVE BANK DISCOUNT RATES [In effect February 28. Per cent per annum] Discounts for and advances to member banks Advances secured by Government obligations maturing or callable in one year or less (Sec. 13) Federal Reserve Bank Rate Effective Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas.... San Francisco. . . . Advances secured by Government obligations maturing or callable beyond one year and Other secured advances discounts of and [Sec. 10(b)J advances secured by eligible paper (Sees. 13 and 13a)i Rate 1942 27, 1942 30, 1942 17, 1942 27, 1942 28, 1942 15, 1942 17, 1942 27, 1942 30, 194*2 27, 1942 17, 1942 28, Effective Sept. 1, 1939 Aug. 25,1939 Mar. 21, 1942 Apr. 11, 1942 Mar. 14,1942 Mar. 21, 1942 Feb. 28,1942 Mar. 14, 1942 Mar. 28,1942 Apr. 11,1942 Mar. 21, 1942 Apr. 4, 1942 Rate Effective Advances to individuals, partnerships, or corporations other than member banks secured by direct obligations of the U. S. (last par. Sec. 13) To nonmember banks Rate Oct. 27, 1942 Oct. 30,1942 Oct. 17, 1942 Sept. 12, 1942 Oct. 28, 1942 Oct. 15, 1942 Aug. 29, 1942 Mar. 14, 1942 Oct. 30, 1942 Oct. 27, 1942 Oct. 17, 1942 Oct. 28,1942 Effective To others Effective Rate Sept. 1, 1939 Aug. 25, 1939 Mar. 21, 1942 Apr. 11,1942 Mar. 14,1942 1939 Sept. 16, Sept. 1, 1939 1939 Sept. 16, Mar. 28, 1942 1939 Sept. 16, 1939 Sept. 16, Apr. 4, 1942 Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. 2 2 2 2 2H 2 27, 30, 17, 27, 28, 15, 17, 27, 30, 27, 17, 28, 1942 1942 1942 1942 1942 1942 1942 1942 1942 1942 1942 1942 1 Rates shown also apply to advances secured by obligations of Federal intermediate credit banks maturing within 6 months. NOTE.—Maximum maturities for discounts and advances to member banks are: 15 days for advances secured by obligations of the Federal Farm Mortgage Corporation or the Home Owners' Loan Corporation guaranteed as to principal and interest by the United States, or by obligations of Federal intermediate credit banks maturing within 6 months; 90 days for other advances and discounts made under Sections 13 and 13a of the Federal Reserve Act (except that discounts of certain bankers' acceptances and of agricultural paper may have maturities not exceeding 6 months and 9 months, respectively); and 4 months for advances under Section 10(b). The maximum maturity for advances to individuals, partnerships, or ' corporations made under the last paragraph of Section 13 is 90 days. Back figures.—See Banking and Monetary Statistics, Tables 115-116, pp. 439-443. FEDERAL RESERVE BANK BUYING RATES ON BILLS FEDERAL RESERVE BANK RATES ON INDUSTRIAL LOANS AND COMMITMENTS UNDER SECTION 13b IPer cent per annum] OF THE FEDERAL RESERVE A C T 1 Maturities not exceeding five years In effect bePrevious Rate on Maturity [In effect February 28. Per cent per annum] ginning— rate Feb.28 H To industrial or commercial businesses Apr. 30, 1942 l Treasury bills *'. Bankers' acceptances:2 1- 90 days 91-120 days 121-180 days Oct. 20, 1933 Oct. 20, 1933 Oct. 20, 1933 1 1 1 Established rate at which Federal Reserve Banks stand ready to buy all Treasury bills offered. Effective Aug. 3, 1942, purchases of such bills, if desired by the seller, were made on condition that the Reserve Bank, upon request before maturity, would sell back bills of like amount and maturity at the same rate of discount. Since May 15,2 1943, all purchases have been made subject to repurchase option. Minimum buying rates on prime bankers' acceptances. Back figures.—See Banking and Monetary Statistics, Table 117, pp. 443-445. GUARANTEE FEES AND MAXIMUM INTEREST AND COMMITMENT RATES CHARGEABLE UNDER REGULATION V ON LOANS GUARANTEED BY WAR DEPARTMENT, NAVY DEPARTMENT, AND MARITIME COMMISSION UNDER EXECUTIVE ORDER NO. 9112 AND CONTRACT SETTLEMENT ACT OF 1944 [Rates in effect February 28] FEES PAYABLE TO GUARANTOR BY FINANCING INSTITUTIONS Percentage of loan guaranteed 80 or less 85 90 . . . . 95 Over 95 Guarantee fee (In terms of percentage of amount of interest payable by borrower)1 10 15 20 30 50 Federal Reserve Bank To financing institutions On discounts or purchases On loans2 On commitments Boston New York Philadelphia. . . Cleveland Richmond Atlanta Chicago St. Louis Minneapolis. . . Kansas City. . . Dallas San Francisco.. Portion for which institution is obligated Remaining portion On commitments (4) 8 () •8 2H-5 11H 1 See table on maximum interest and commitment rates chargeable under Regulation V for rates on guaranteed Section 13b loans. 2 Including loans made in participation with financing institutions. 3 Rate charged borrower less commitment rate. 4 Rate charged borrower. 6 May charge rate charged borrower by financing institution, if lower. 8 Charge of H per cent is made on undisbursed portion of loan. Back figures.—See Banking and Monetary Statistics, Table 118, pp. 446-447. MAXIMUM RATES ON TIME DEPOSITS Maximum rates that may be paid by member banks as established by the Board of Governors under provisions of Regulation Q [Per cent per annum] Nov. 1,1933- Feb. 1, 1935- Effective Jan.31, 1935 Dec.31,1935 Jan. 1, 1936 MAXIMUM RATES THAT MAY B E CHARGED BORROWERS BY FINANCING INSTITUTION? [Per cent per annum] Maximum rate of i n t e r e s t . . . . Maximum commitment rate 2 . 1 2 Guarantee fee is charged only on guaranteed portion of loan. Based on average daily unused balance of the maximum principal amount of the loan. The financing institution may, in the alternative, charge a flat fee of not to exceed $50, without regard to the amount or maturity of the commitment. 294 Savings deposits Postal savings- deposits Other deposits payable: In 6 months or more In 90 days to 6 months. . . . In less than 90 days NOTE.—Maximum rates that may be paid by insured nonmember banks as established by the F. D. I. C , effective Feb. 1, 1936, are the same as those in effect for member banks. Under Regulation Q the rate payable by a member bank may not in any event exceed the maximum rate payable by State banks or trust companies on like deposits under the laws of the State in which the member bank is located. FEDERAL RESERVE BULLETIN MARGIN REQUIREMENTS * [Per cent of market value] MEMBER BANK RESERVE REQUIREMENTS [Per cent of deposits] Net demand deposits1 Central reserve city banks Period in effect June Aug. Mar. May Apr. Nov. Aug. Sept. Oct. 21, 16, 1, 1, 16, 1, 20, 14, 3, 1917-Aug. 15, 1936.. 1936-Feb. 28, 1937.. 1937-Apr. 30, 1937.. 1937-Apr. 15,1938.. 1938-Oct. 31,1941.. 1941-Aug. 19, 1942.. 1942-Sept. 13, 1942.. 1942-Oct. 2, 1942.. 1942 and after Time deposits Reserve Country (all city banks member banks banks) 10 15 17K 20 17H 20 20 20 20 13 19H 22% 26 22% 26 24 22 20 7 Regulation T: For extensions of credit by brokers and dealers on listed securities 3 4^ 10H Feb. 5, 1945July 4, 1945 Prescribed in accordance with Securities Exchange Act of 1934 \lH 6 5 12 6 14 6 14 6 6 14 14 1 Demand deposits subject to reserve requirements, i. e., demand deposits other than war loan deposits, minus cash items in process of collection and demand balances due from domestic banks. July 5, Effec1945tive Jan. 20, Jan. 21. 1946 1946 50 50 75 75 100 100 50 Regulation U: For loans by banks on stocks 75 100 1 Regulations T and U limit the amount of credit that may be extended on a security by prescribing a maximum loan value, which is a specified percentage of its market value at the time of the extension; the "margin requirements" shown in this table are the difference between the market value (100%) and the maximum loan value. Back figures.—See Banking and Monetary Statistics, Table 145, p. 504. PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS [In thousands of dollars] Wednesday figures Item Feb. 27 Assets Gold certificates Redemption fund for F. R. notes End of month 1946 Feb. 20 Feb. 13 1946 Jan. 30 Feb. 6 Jan. 23 Jan. 16 February 1945 January February 17,266,565 17,248,560 17,188,565 17,188,565 17,188,565 17,163,565 17,163,565 17,266,563 17,188,565 17,724,865 782,367 794,410 794,408 794,425 794,424 794,424 796,381 782,368 794,423 620,810 Total gold certificate reserves.... 18,048,932 18,042,970 17,982,973 17,982,990 17,982,989 17,957,989 17,959,946 18,048,931 17,982,988 18,345,675 Other cash 353,515 Under repurchase option Other Certificates: Special Other Notes Bonds Guaranteed 349,199 356,110 339,219 313,990 357,973 358,700 264,374 312,610 366,015 243,975 264,990 160,105 162,900 307,400 249,215 320,776 40,000 45,000 45,040 45,040 47,040 47,040 40,000 45,040 380,075 352,610 411,015 289,015 310,030 207,145 209,940 347,400 294,255 320,776 1,589 Industrial loans U. S. Gov't securities: Direct: 347,008 40,000 Total discounts and advances 348,732 340,075 Discounts and advances: For member banks... For nonmember banks, etc 1,754 1,751 1,762 1,783 1,843 1,826 1,546 1,799 3,801 5,320,458 5,343,071 5,283,470 5,214,383 5,244,960 5,172,169 4,912,161 5,196,921 5,144,726 5,027,092 7,785,774 7,754,464 7,776,914 7,721,064 7,643,274 7,609,864 7,588,025 7,841,189 7,721,064 6,803,294 7,546,211 7,594,211 7,843,711 7,940,211 8,056,711 8,186,211 8,529,911 7,546,211 8,046,711 4,917,140 1,372,700 1,378,700 1,401,700 1,404,700 1,404,700 1,426,200 1,459,700 1,372,700 1,404,700 1,559,721 946,892 946,892 946,892 946,892 946,892 1,132,072 946,892 946,892 946,892 946,89" Total U. S. Govt. securities.including guaranteed 22,972,035 23,017,338 23 3,252,687 23,227,250 23,296,537 23,341,336 23 securities 3,436,689 22,903,913 23,264,093 19,439,319 Other Reserve Bank 322,969 415,386 267,780 395,313 415,960 289,160 423,616 394,157 322,139 371,443 credit outstanding Total Reserve Bank credit outstanding 23,676,668 23,787,088 23,933,233 23,840.166 23,897,510 23,921,767 24,072,071 23,648,172 23,976,107 20,158,053 Liabilities Federal Reserve notes.. 24,124,304 24,151,094 24,155,038 24,149,470 24,147,899 24,208,912 24,342,950 24,130,539 24,153,383 22,162,307 Deposits: Member bank — reserve account 15,555,461 15,490,106 15,693,102 15,716,698 15,681,187 15,859,412 16,145,179 15,537,355 15,681,691 14,228,453 U. S. Treasurer—gen829,035 826,157 940,449 762,397 845,456 864,040 460,184 577,706 272,196 716,22 eral account 808,48 781,274 888,398 1,191,796 872,265 780,650 749,834 837,273 835,651 Foreign 828,188 426,179 425,407 406,127 423,312 411,230 401,953 421,398 422,058 389,096 398,13 Other deposits Total deposits 17,584,326 17,665,216 17,730,288 17.659,246 17,741,256 17,676.344 17,674,424 17,558,894 17,821,672 16,269,529 Ratio of gold certificate reserves to deposit and F. R. note liabilities combined (per cent).. 43.3 43.1 42.9 43.0 42.9 42.9 42.7 43.3 47.7 MATURITY DISTRIBUTION OF LOANS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS [In thousands of dollars] February 27, 1946 Discounts and advances Industrial loans U. S. Government securities MARCH 1946 Total Within 15 days 16 to 30 days 31 to 60 days 61 to 90 91 days to 6 months days 6 months to 1 year 380,075 302,660 52,890 17,850 6,675 89 1,589 6 21 1,397 45 6 22,972,035 3,845,102 2, 134,927 5, 425,492 4, 442,332 1,786,792 4,286,700 1 year to 2 years to 2 years 5 years 14 11 360,000 Over 5 years 690,690 295 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS [In thousands of dollars] Total Assets Gold certificates: Jan. 23. Jan. 30 Feb. 6 Feb. 13 Feb. 29 Redemption fund for F. R. notes: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Total gold certificate reserves: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Other cash: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Discounts & advances: Secured by U. S. Govt. securities: Jan. 2 3 . . . Jan. 3 0 . . . Feb. 6 . . . Feb.13... Feb. 2 0 . . . Other: Jan. 2 3 . . . Jan. 3 0 . . . Feb. 6 . . . Feb.13... Feb. 2 0 . . . Industrial loans: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 U. S. Govt. securities: Bills: Under repurchase option: Jan. 2 3 . . . Jan. 3 0 . . . Feb. 6 . . . Feb.13... Feb. 2 0 . . . Other bills: Jan. 2 3 . . . Jan. 3 0 . . . Feb. 6 . . . Feb.13... Feb. 2 0 . . . Certificates: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Notes: Jan. 2 3 . . . . Jan. 3 0 . . . . Feb. 6 . . . . Feb. 1 3 . . . . Feb. 2 0 . . . . Bonds: Jan. 2 3 . . . . Jan. 3 0 . . . . Feb. 6 . . . . Feb. 1 3 . . . . Feb. 2 0 . . . . Total U. S. Govt securities: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Total loans and securities: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Boston New York Philadelphia Cleveland Richmond San Francisco St. Louis Minneapolis Kansas City Dallas 951,735 2,781,907 955,293 2,839,347 961,999 2,767,999 986,229 2,762,164 995,661 2,833,424 556,293 553,642 562,883 580,231 547,107 327,154 321,814 325,487 324,501 325,692 575,980 568,159 571,462 576,303 565,278 460,836 2,608,374 465,690 2,537,329 470,665 2,514,288 461,934 2,554,099 457,326 2,600,141 145,042 145,042 145,042 145,042 145,042 42,921 42,921 42,921 42,921 42,922 20,119 20,119 20,119 20,119 20,119 35,178 35,178 35,178 35,177 35,177 26,086 26,086 26,086 26,085 26,086 111,582 111,582 111,582 111,580 111,580 5,448,895 882,978 ,190,632 958,431 996,864 2,926,949 599,214 5,493,836 900,109 ,153,067 973,872 1,000,422 2,984,389 596,563 5,547,361 889,004 170,114 983,623 1,007,128 2,913,041 605,804 5,502,035 874,706 167,276 969,976 1,031,357 2,907,206 623,152 5,476,288 879,358 182,770 944,641 1,040,789 2,978,466 590,029 347,273 341,933 345,606 344,620 345,811 611,158 603,337 606,640 611,480 600,455 486,922 491,776 496,751 488,019 483,412 ,719,956 :,648,911 ,625,870 ,665,679 ,711,721 13,239 13,717 12,634 11,229 11,323 38,795 43,422 40,269 40,703 40,238 Atlanta Chicago 17,163,565 17,188,565 17,188,565 17,188,565 17,248,560 729,738 735,795 733,069 738,489 750,252 5,340,766 5,385,707 5,439,232 5,393,914 5,368,167 822,152 839,283 828,178 813,881 818,533 ,112,864 ,075,299 ,092,345 ,089,508 ,105,002 895,766 911,207 920,958 907,312 881,977 794,424 794,424 794,425 794,408 794,410 58,979 58,979 58,979 58,978 58,978 108,129 108,129 108,129 108,121 108,121 60,826 60,826 60.826 60,825 60,825 77,768 77,768 77,769 77.768 77,768 62,665 62,665 62,665 62,664 62,664 17,957,989 17,982,989 17,982,990 17,982,973 18,042,970 788,717 794,774 792,048 797,467 809,230 339,219 356,110 349,199 347,008 348,732 28,966 29,504 29,968 32,957 32,971 63,811 62,570 67,017 64,334 70,042 23,771 24,807 24,207 24,002 23,165 29,209 27,847 30,605 28,397 31,366 23,769 26,417 25,597 27,269 26,634 32,705 37,037 32,644 33,599 29,074 42,982 46,715 44,938 44,309 45,340 18,947 19,389 18,739 17,382 16,537 6,704 7,270 5,952 6,027 4,370 16,321 17,415 16,629 16,800 17,672 160,145 265,030 244,015 366,015 312,610 6,405 10.500 18.050 19.850 19,255 91,275 120,630 101,185 181,135 145,310 1,250 4,220 6,150 11,090 16,865 4,500 23.535 21.735 49,885 26,985 500 2,500 4,000 3,600 5,800 5,500 11,780 9,780 5,480 3,300 12,650 17,050 16,400 37,800 51,400 7,540 15,290 16,040 3,000 10,000 12,100 20,100 15,800 14,800 17,500 18,425 36,425 24,875 27,375 15,175 47,000 45,000 45,000 45,000 40,000 3,008 2,880 2,880 2.880 2,560 15,651 14,985 14,985 14,985 13,320 3,901 3,735 3,735 3,735 3,320 4,371 4,185 4,185 4,185 3,720 2,209 2,115 2,115 2,115 1,880 1,786 1,710 1,710 1,710 1,520 6,298 6,030 6,030 6,030 5,360 1,598 1,530 1,530 1,530 1,360 1,175 1,125 1,125 1,125 1,000 1,551 1,485 1,485 1,485 1,320 1,504 1,440 1,440 1,440 1,280 3,948 3,780 3,780 3,780 3,360 1,843 1,783 1,762 1,751 1.754 106 106 106 106 101 5,172,169 5,244,960 5,214,383 5,283,470 5,343,071 89,415 71.910 57,535 91.583 93,765 2,714,252 2.678.061 2.698.384 2.687.194 2,779,895 232,266 220,526 224,901 242,476 250,551 134,690 113,510 107,670 115,420 108,180 37,571 40,413 38,963 35,383 70,621 16, 740 25,828 19,988 18,688 21,188 1,498,036 1,488,064 1,520,154 1,536,714 1,454,044 106,631 125,031 117,486 101,267 113,879 34,290 57,395 51,500 55,700 38,590 49,410 62,365 56,066 40,949 32,102 27,303 34,792 30,946 28,446 15,421 231,565 327,065 290,790 329,650 364,835 7,609,864 7,643,274 7,721,064 7,776,914 7,754,464 629.961 650,239 666,982 645,169 662,288 534 47,825 57,380 51,999 571,627 597,391 609,205 614.961 614,589 993,194 1,045,264 1,043,822 1,041,821 1,050,278 747,220 750,011 756,510 760,377 758,951 633,391 635,696 641,062 644,256 1,051,593 449,747 296,992 1,024,978 445,734 284,331 1,038,025 435,813 272,882 1,031,101 464,353 291,500 643,078 988,837 485,704 309,762 537,414 529,460 517,175 535,053 565,983 429,682 421,600 426,848 436,505 444,490 1,269,043 1,258,036 1,264,915 1,254,438 1 ,178,505 8,186,211 8,056,711 7,940,211 7,843,711 7,594,211 561,202 551,935 543,648 536,780 518,982 2,056,643 2,025,462 1,997,228 1,973,864 1,913,577 618,977 '609,081 600,191 592,827 573,779 779,847 766,959 755,435 745,883 721,134 512,855 504,642 497,265 491,154 475,340 424,070 1,051,215 417,285 1,034,688 411,191 1,019,809 406,142 1,007,484 393,085 975,629 402,334 396,105 390,487 385,832 373,813 222,818 219,165 215,896 213,188 206,172 398,490 392,177 386,501 381,796 369,636 358,347 352,758 347,720 343,549 332,772 799,413 786,454 774,840 765,212 740.292 1,426,200 1,404,700 1,404,700 1,401,700 1,378,700 97,773 96,230 96,177. 95,924 94,219 358,309 353,142 353,328 352,736 347,402 107,838 106,194 106,180 105,941 104,166 135,866 133,720 133,645 133,292 130,919 89,350 87,985 87,971 87,770 86,297 73,881 183,143 72,755 180,400 72,744 180,414 72,580 180,041 71,363 177,122 70,093 69,062 69,080 68,950 67,865 38,818 38,212 38,195 38,098 37,430 69,425 68,377 68,375 68,229 67,107 62,430 61,503 61,515 61,393 60,413 139,274 137,120 137,076 136,746 134,397 946,892 946,892 946,892 946,892 946,892 64,914 64,868 64,832 64,800 64,710 237,891 238,049 238.175 238,284 238,596 71,596 71,584 71,575 71,566 71,541 90,205 90,139 90,088 90,043 89,915 59,322 59,309 59,300 59,291 59,269 49,052 49,043 49,036 49,030 49,012 46,537 46,554 46,566 46,578 46,610 25,772 25,758 25,747 25,736 25,707 46,093 46,092 46,091 46,091 46,089 41,449 41,459 41,466 41,473 41,492 92,468 92,431 92,401 92,376 92,304 23,341,336 23,296,537 23,227,250 23,252,687 23,017,338 1,443,265 1,435,182 1,429,174 1 434.256 1,433,964 5,367,095 5,295,248 5,334,940 5,309,458 5,331,469 1,602.304 2.133,802 1,604,776 2,149,592 1,612,052 2,130,660 1,627,771 2,126,459 1,614,626 2,100,426 ,446,318 1 ,197,134 3,905 1,580 1,075,342 ,442,360 1,200,607 3 1,849,736 1.082,486 ,440,009 1,194,021 3,880,017 1.059.432 ,433.975 1,190,696 3,876,964 1 066.980 ,450,478 1,177,726 3,717,279 1,087,871 618,690 624,861 604,220 624,222 617,661 ,100,832 919,211 2,531,763 1 1,098,471 912, 112 2,601,106 1,074,208 908,495 2.560,022 1,072,118 911,366 2.578,422 1,080,917 894,588 2,510,333 23,550,324 23,608,350 23,518,027 23,665,453 23,371,702 ,452,784 ,448,668 ,450,210 ,457,092 ,455,880 5,474.021 5,430,863 5,451,110 5,505,578 5,490,099 1,609,150 2,142,673 1,449,069 1,614,369 2M77.312 1,447,014 1,623,554 2,156,580 1,446,163 1,644,202 2 ,180,529 1,439,729 1,636,425 2,131,131 1,458,197 631,965 646,086 621,145 640,147 636,161 1,120,808 920,715 2,535,711 1,136,381 916,552 2,604,886 1,100,568 909,935 2,573,802 1,100,978 912,806 2,594,202 1,097,412 895,868 2,514,713 296 45,129 45,129 45,129 45,128 45,128 3,000 10,000 12,000 1,020 42 39 39 39 39 1,695 1,638 1,617 1,606 1,614 121,593 121,606 121,615 121,624 121,647 1,204,420 3,924,528 1,084,480 1,214,097 3,872,816 1,099,306 1,077.002 1,205,511 1,197,886 3,920,794 1,071,510 1,182,546 3 1,099,23i FEDERAL RESERVE BULLETIN STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued fin thousands of dollars] Total Due from foreign banks: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Federal Reserve notes of other banks: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Uncollected items: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20.. Jan. 23. Jan. 30 Feb. 6 . . . Feb. 13 Feb. 2 0 . . . Other assets: Jan. 23 Jan. 30 Feb. 6.. Feb. 13 Feb. 20 Total assets: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Liabilities Federal Reserve notes: J a n . 23 J a n . 30 Feb. 6 Feb. 13 Feb. 20 Deposits: Member bank —reserve account: Jan. 2 3 . . . Jan. 3 0 . . . Feb. 6 . . . Feb.13... Feb. 2 0 . . . U. S. Treasurer-general account: Jan.23... Jan. 3 0 . . . Feb. 6 . . . Feb.13... Feb. 2 0 . . . Foreign: J a n . 23 J a n . 30 Feb. 6 Feb. 13 Feb. 20 Other: Jan. 23 J a n . 30 Feb. 6 Feb. 13 Feb. 20 Total deposits: Jan. 23 Jan. 30 Feb. 6 Feb. 13 . . Feb. 20 Deferred availability items: Jan. 23 Jan. 30 Feb. 6..... Feb. 13 Feb. 20 NewYork Boston Philadelphia Cleveland Richmond Chicago Atlanta Kansas City Minneapolis St. Louis San Francisco Dallas 4 4 4. 4 4 15 15 15 15 15 3 3 3 4 4 3 3 3 3 3 4 4 4 4 4 3 3 3 3 3 9 9 9 9 9 40,585 42,462 44,580 43,889 44,526 13,618 13,779 12,015 12,157 12,773 16,623 13,923 12,698 9,975 11,808 7,812 7,387 6,928 6,796 7,285 6,797 7,180 5,584 4,445 4,489 7,844 7,230 7,555 5,151 6,865 4,702 4,463 4,305 3,419 4,841 26,697 24,875 26,156 21,348 24,052 199,017 193,438 177,724 174,268 219,074 171,823 150,230 148,349 150,041 152,335 213,977 142,408 133,206 144,602 150,590 346,013 313,019 316,545 300,461 347,062 112,940 90,966 86,337 94,247 90,290 56,937 51,702 48,802 46,928 52,299 118,897 101,262 108,285 104,098 108,194 110,021 84,407 85,282 80,365 91,597 211,667 215,521 215,935 234,675 221,712 3,313 3,301 3,301 3,301 3,289 3,979 3,979 3,979 3,979 3,970 2,762 2,762 2,762 2,762 2,762 1,568 1,565 1,565 1,565 1,565 3,108 3,107 3,111 3,111 3,111 2,058 2,056 2,054 2,054 2,053 1,263 1,261 1,261 1,262 1,262 2,591 2,591 2,585 2,585 2,585 829 829 826 826 826 1,863 1,856 1,857 1,857 1,857 14,648 15,664 13,546 14,214 14,470 4,698 4,613 4,173 4,305 4,420 6,319 6,724 6,340 6,589 6,640 4,145 4,196 3,773 4,011 4,066 3,541 3,672 3,370 3,478 3,459 9,413 8,777 7,986 8,173 8,185 3,760 3,832 3,591 3,670 3,645 1,818 1,788 1,644 1,643 1,719 3,083 3,201 2,964 3,077 3,131 3,086 3,148 2,709 2,800 2,846 6,537 6,822 6,484 6,630 6,956 2,419,728 2,420,924 2,422,082 2,448,162 2,459,752 11,445,722 11,442,035 11,448,015 11,455,492 11,556,944 2,646,129 2,673,289 2,670,247 2,680,834 2,691,113 3,584,745 3,575,832 3,556,041 3,569,263 3,584,262 2,650,589 2,646,958 2,654,852 2,637,682 2,633,166 2,466,697 2,412,984 2,395,443 2,424,648 2,420,800 7,269,631 7,242,761 7,200,781 7,194,044 7,168,026 1,829,214 1,819,502 1,800,458 1,818,815 1,809,074 1,052,760 1,057,223 1,029,997 1,045,075 1,046,114 1,880,706 1,871,421 1,845,230 1,844,173 1,836,318 1,539,517 1,514,895 1,512,445 1,499,467 1,490,716 5,541,235 5,546,302 5,496,382 5,565,103 5,521,258 24,208,912 24,147,899 24,149,470 24,155,038 24,151,094 1,446,315 1,443,392 1,445,025 1,449 534 1,451,085 5,290,402 5,281,664 5,278,582 5 281 526 5,285,235 1,614,071 1,608,848 1,610,907 1,614,768 1,614,656 2,059,995 2,054,470 2,053,351 2,054,572 2,048,281 1,700,692 1,696,808 1,696,015 1,692,262 1,695,174 1,456,968 1,453,434 1,455,830 1,453,057 1,450,556 4,393,861 4,383,933 4,392,404 4,397,612 4,393,255 1,047,850 1,047,113 1,048,884 1,046,588 1,046,963 546,494 545,091 546,714 548,028 548,135 902,149 901,109 901,833 900 365 898,275 607,112 604,744 604,702 602,348 600,978 3,143,003 3,127,293 3,115,223 3,114,378 3,118,501 15,859,412 15,681,187 15,716,698 15,693,102 15,490,106 712,394 686,534 696,088 686,423 677,971 4,920,723 4,869,699 4,867,704 4,850,463 4,835,663 789,696 793,609 790,252 779,724 764,516 1,192,375 1,150,010 1,171,360 1,148,216 1,133,948 703,208 690,174 715,765 708,951 697,729 743,096 729,853 739,002 757,403 738,465 2,280,018 2,284,430 2,290,380 2,270,411 2,207,001 595,013 589,110 588,802 601,996 591,522 385,721 386,289 381,695 381,454 379,287 775,908 771,845 761,391 776,509 758,800 755,728 730,761 744,530 734,675 728,595 2,005,532 1,998,873 1,969,729 1,996,877 1,976,609 577,706 762,397 716,227 864,040 940,449 27,706 57,254 48,908 95,454 89,619 103,099 118,806 216,242 256,469 251,567 28,696 44,844 48,722 68,160 81,726 46,894 68,563 53,302 77,149 94,521 32,842 53,330 42,057 43,739 42,876 28,019 38,431 24,529 30,216 40,535 125,128 131,951 95,114 81,836 126,537 39,944 41,664 29,440 40,830 33,628 34,044 45,461 29,238 34,341 40,019 44,472 50,340 36,034 25,528 33,102 32,033 57,748 44,150 34,085 39,524 837,273 872,265 828,188 749,834 808,482 51,197 53,622 50,691 45,714 49,769 2 307,019 2 318,360 2 302,670 2 276,441 2 294,370 65,931 68,860 65,356 58,866 63,912 73,875 77,156 73,230 65,958 71,613 37,335 38,993 37,009 33,334 36,191 30,185 31,526 29,922 26,951 29,261 106,443 111,171 105,514 95,037 103,184 27,008 28,208 26,772 24,114 26,181 19,859 20,741 19,686 17,731 19,251 26,214 27,378 25,985 23,405 25,411 25,419 26,548 25,197 22,695 24,641 401,953 425,407 398,133 423,312 426,179 4,697 3,675 4,236 3,887 4,610 307,999 328,150 298,315 331,981 334,405 3,266 4,563 3,829 3,178 3,158 8,019 8,688 9,050 8,965 9,626 3,547 3,412 5,488 3,048 2,746 3,399 3,742 3,559 2,647 3,036 7,172 8,555 7,517 5,893 3,582 10,794 11,125 9,701 9,444 10,056 2,858 3,433 3,839 3,901 4,359 582 1,394 1,534 1,765 1,940 1,497 1,028 1,790 1,005 1,043 34,829 54,005 48,491 76,233 66,795 66,788 69,702 66,156 59,588 64,698 48,123 47,642 49,275 47,598 47,618 17,676,344 17,741,256 17,659,246 17,730,288 17,665,216 795,994 801,085 799,923 831,478 821,969 5,638,840 5,635,015 5,684,931 5,715 354 5,716,'OO5 887,589 911,876 908^159 909 928 913,312 1,321,163 1,304,417 1 300288 1,309,708 776,932 785,909 800^319 789 072 7 79,?5 42 804,699 803,552 797,012 817,217 811,297 2,518,761 2,536,107 2,498,525 2,453,177 2,'440,'304 672,759 670,107 654,715 676 384 661,387 442,482 455,924 434,458 437,427 442,916 847,176 850,957 824,944 827,207 819,253 814,677 816,085 815,667 792,460 793,803 2,155,272 2,170,222 2,133,651 2 180,296 2,155,720 1,836,990 1,727,921 1,607,716 1,685,762 1,787,810 138,445 137,257 137 836 127,711 147,136 322,113 330,546 288,849 262,955 359,687 94,852 102,683 101,119 105,862 112,771 147,439 160,479 139,121 157,489 169,202 143,811 134,942 129,115 126,732 128,661 180,630 131,337 117,892 129,494 133,958 275,927 241,091 228,071 261,100 252,187 87,174 80,702 75,183 74,050 78,861 47,447 40,147 32,566 43,268 38,676 110,112 97,962 96,936 94,967 97,089 97,293 73,494 71,404 83,877 75,016 191,747 197,281 189,624 218,257 194,566 110 110 110 110 110 7 172,325 159,729 152,042 137,670 153,913 137 137 137 1 37 137 10 10 10 9 9 10 10 10 10 10 5 5 5 6,376 5,882 4,251 4,499 5,209 22,195 14,997 13,932 13,846 19,016 6,170 4,096 3,349 3,930 3,748 12,906 13,455 10,689 8,215 9,301 2,208,323 2,016,971 1,929,745 1,953,432 2,203,086 137,551 136,640 140,275 150,576 150,898 413,441 415,394 346,356 346,792 478,336 116,039 121,984 122,649 126,379 140,699 33,360 33,329 33,305 33,306 33,284 1,352 1,348 1,348 1,348 1,348 8,674 8,674 8,656 8,656 8,656 65,023 66,538 60,555 62,806 63,746 3,975 4,101 3,975 4,216 4,209 44,326,673 44,224,126 44,025,973 44,182,758 44,217,543 c 1 2 After deducting $73,000 participations of other Federal Reserve Banks. After deducting $529,833,000 participations of other Federal Reserve Banks on Jan. 23; $553,365,000 on Jan. 30; $525,210,000 on Feb. 6; $473,057,000 on Feb. 13; and $513,608,000 on Feb. 20. MARCH 1946 297 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued lln thousands of dollars! Total Other liabilities including accrued div.: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Total liabilities: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Capital Acc'ts: Capital paid in: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Surplus (section 7): Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Surplus (section 13b): Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Other capital accounts: Jan. 30 Jan. 23 •Feb. 6 Feb. 13 Feb. 2 0 . . . . . Total A VJLdl 1IQ1"\I1I ti AO lldUlllLlcb and capital accounts: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Commitments to make industrial loans: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 New York Boston Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 9,841 9,933 10,283 10,314 10,133 425 448 492 479 517 2,548 2,479 2,937 2,552 2,490 439 495 540 608 549 841 954 929 1,019 972 472 468 452 551 531 391 470 380 429 431 2,169 2,174 2,145 2,120 2,065 296 317 356 397 380 675 336 470 511 496 337 363 381 409 402 43,732,087 43,627,009 43,426,715 43,581,402 43,614,253 2,381,179 2,382,182 2,383,276 2,409,202 2,420,707 11,253,903 11,249,704 11,255,299 11,262,387 11,363,417 2,596,951 2,623,902 2,620,725 2,631,166 2,641,288 3,529,438 3,520,320 3,500,343 3,513,368 3,528,163 2,621,907 2,618,127 2,625,901 2,608,617 2,603,908 2,442,688 2,388,793 2,371,114 2,400,197 2,396,242 7,190,718 7,163,305 7,121,145 7,114,009 7,087,811 1,808,079 1,798,239 1,779,138 1,797,419 1,787,591 1,037,098 1,041,498 1,014,208 1,029,234 1,030,223 1,859,774 1,850,391 1,824,094 1,822,948 1,815,019 179,146 179,508 179,785 179,965 180,142 10,703 10,701 10,707 10,720 10,731 63,848 63,935 63,967 63,976 63,985 13,280 13,350 13,375 13,399 13,422 18,002 18,023 18 046 18,075 18,090 7,321 7,350 7,351 7,367 7,408 6,520 6,605 6,624 6,654 6,664 21,384 21,396 21,430 21,450 21,468 5,704 5,712 5,717 5,724 5,745 3,914 3,920 3,930 3,932 3,935 5,897 5,900 5,901 5,911 5,923 6,126 6,130 6,232 6,246 6,256 16,447 16,486 16,505 16,511 16,515 358,355 358,355 358,355 358,355 358,355 22,439 22,439 22,439 22,439 22,439 116,860 116,860 116,860 116,860 116,860 28,946 28,946 28,946 28,946 28,946 33,745 33,745 33,745 33,745 33,745 15,593 15,593 15,593 15,593 15,593 14,450 14,450 14,450 14,450 14,450 53,029 53,029 53,029 53,029 53,029 12,939 12,939 12,939 12,939 12,939 8,869 8,869 8,869 8,869 8,869 11,891 11,891 11,891 11,891 11,891 10,670 10,670 10,670 10,670 10,670 28,924 28,924 28,924 28,924 28,924 27,428 27,428 27,428 27,428 27,428 3,012 3,012 3,012 3,012 3,012 7,205 7,205 7,205 7,205 7,205 4,501 4,501 4,501 4,501 4,501 1,007 1,007 1,007 1,007 1,007 3,326 3,326 3,326 3,326 3,326 762 762 762 762 762 1,429 1,429 1,429 1,429 1,429 527 527 527 527 527 1,073 1,073 1,073 1,073 1,073 1,137 1,137 1,137 1,137 1,137 1,307 1,307 1,307 1,307 1,307 2,142 2,142 2,142 2,142 2,142 29,657 31,826 33,690 35,608 37,365 2,395 2,590 2,648 2,789 2,863 3,906 4,331 4,684 5,064 5,477 2,451 2,590 2,700 2,822 2,956 2,553 2,737 2,900 3,068 3,257 2,442 2,562 2,681 2,779 2,931 2,277 2,374 2,493 2,585 2,682 3,071 3,602 3,748 4,127 4,289 1,965 2,085 2,137 2,206 2,272 1,806 1,863 1,917 1,967 2,014 2,007 2,102 2,207 2,286 2,348 1,990 2,067 2,164 2,240 2,321 2,794 2,923 3,411 3,675 3,955 44,326,673 44,224,126 44,025,973 44,182,758 44,217,543 2,419,728 2,420,924 2,422,082 2,448,162 2,459,752 11,445,722 11,442,035 11,448,015 11,455,492 11,556,944 2,646,129 2,673,289 2,670,247 2,680,834 2,691,113 3,584,745 3,575,832 3,556,041 3,569,263 3,584,262 2,650,589 2,646,958 2,654,852 2,637,682 2,633,166 2,466,697 2,412,984 2,395,443 2,424,648 2,420,800 7,269,631 7,242,761 7,200,781 7,194,044 7,168,026 1,829,214 1,819,502 1,800,458 1,818,815 1,809,074 1,052,760 1,057,223 1,029,997 1,045,075 1,046,114 1,880,706 1,871,421 1,845,230 1,844,173 1,836,318 1,587 1,605 1,606 1,581 1,559 164 164 164 164 164 648 673 674 660 638 300 300 300 300 300 200 200 200 200 200 342 398 299 319 365 906 1,031 902 920 935 1,519,424 5,490,928 1,494,721 5,495,827 1,492,072 5,439,400 1,479,004 5,513,851 1,470,162 5,469,722 1,539,517 5,541,235 1,514,895 5,546,302 1,512,445 5,490,382 1,499,467 5,565,103 1,490,716 5,521,258 185 178 178 178 178 90 90 90 79 79 FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In thousands of dollars! Total Federal Reserve notes outstanding (issued to bank): Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Collateral held against notes outstanding: Gold certificates: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 30 Eligible paper: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 . U. S. Govt. securities: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Total collateral: Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 25,374,577 25,281,326 25,247,166 25,200,094 25,203,486 10,628,000 10,618,000 10,693,000 10,693,000 10,854,000 137,495 209,665 196,100 272,850 230,925 Boston New York Philadelphia Cleveland Richmond St. Minne- Kansas Louis apolis City Dallas San Francisco 942,845 646,721 3,354,298 935,655 648,118 3,329,884 936,294 645,411 3,316,963 937,238 644,218 3,304,706 936,563 643,888 3,317,074 635,000 600,000 680,000 1,660.000 300,000 175,000 635,000 600,000 680,000 1,660,000 300,000 165,000 635,000 600,000 655,000 1,760,000 300,000 165,000 635,000 600,000 655,000 1,760,000 300,000 165,000 635,000 600,000 655,000 1,720,000 300,000 165,000 280,000 169,000 1,649,000 280.000 169,000 1,649,000 280,000 169,000 1,649,000 280,000 169,000 1,649,000 280,000 169,000 1,850,000 460,000 3,520,000 460,000 3,520,000 460,000 3,520,000 460,000 3,520,000 460,000 3,520,000 6,405 10,500 18,050 19,850 19,255 91,275 120,630 101,185 181,135 145,310 500,000 500,000 500,000 500,000 500,000 1,250 4,220 6,150 11,090 16,865 500 2,500 4,000 3,600 5,800 100,000 2,000,000 1,200,000 1,550,000 1,225,000 1,100,000 2,000,000 1,200,000 1,550,000 1,225,000 1,100,000 2,000,000 1,200,000 1,550,000 1,225,000 1,100,000 2,000,000 1,200,000 1,550,000 1,225,000 1,100,000 2,000,000 1,200,000 1,550,000 1,225,000 26,072,126 26,152,696 26,106,586 26,167,11 26,298,804 1,566,405 5,611,275 1,570,500 5,640,630 1,578,050 5,621 1,185 1 579.850 5 >,701,135 1 ,579,255 5,665,310 Chicago 1,523,095 5,525,134 1,683,137 2,155,365 ,782,293 1,546,008 4,544,368 1,106,860 564,453 ,144,267 779,334 1,538,944 4,523,675 1,106,305 562,152 1,520,565 5,510,007 1,682,420 2. ,137,814 ,778,247 1,537,889 4,517,747 1,106,887 559,594 1,517,936 5,513,544 1,678,840 2. : , 1,513,632 5,511,804 1,680,600 2. 135,493 ,777 907 1,518,552 4,508,293 1,106,734 560,917 1,509,848 5,509,468 1,692,055 2,133,101 ,777,419 1,516,244 4,502,447 1,104,486 560,893 15,306,631 15,325,031 15,217,486 15,201,267 15,213,879 298 Atlanta 1,701,250 2, 185,000 1 ,704,220 2, 185,000 1,706,150 2, 185,000 1,711,090 2, 185,000 ,716,865 2, 185,000 1,825,500 1,827,500 1,829,000 1,828,600 1,830,800 7,540 15,290 16,040 3,000 10,000 900,000 2,900,000 900,000 2,900,000 900,000 2,800,000 900,000 2,800,000 900,000 2,800,000 1,580,000 1,580,000 1,555,000 1,555,000 1,555,000 4,560,000 4,560,000 4,560,000 4,560,000 4,520,000 12,100 20,100 15,800 14,800 17,500 931,631 400,000 950,031 400,000 942,486 400,000 926,267 400,000 938,879 400,000 18,425 36,425 24,875 27,375 15,175 10,000 12,000 1,020 700,000 500,000 1,900,000 700,000 500,000 1,900,000 700,000 500,000 1,900,000 700,000 500,000 1,900,000 700,000 500,000 1,900,000 ,239,171 587,100 998,425 669,000 3,549,000 ,265,321 585,100 016,425 669,000 3,549,000 258,526 580,800 1,004,875 669,000 3,559,000 ,229,267 579,800 1,,007,375 669,000 3,561,000 248,879 582,500 995,175 669,000 3,751,020 FEDERAL RESERVE BULLETIN MEMBER BANK RESERVES AND BORROWINGS [Averages of daily figures. In millions of dollars] WAR PRODUCTION LOANS GUARANTEED BY WAR DEPARTMENT, NAVY DEPARTMENT, AND MARITIME COMMISSION THROUGH FEDERAL RESERVE BANKS UNDER REGULATION V [Amounts in thousands of dollarsl Guaranteed loans outstanding Guaranteed loans authorized to date Date Portion guaranteed Total amount Number Additional amount available to borrowers under guarantee agreements outstanding 1942 June 30. . . Sept. 30.. . Dec. 31. . . 565 1,658 2,665 310,680 944.204 2,688,397 1943 Mar. 31. . . June 30. . . Sept. 30. . . Dec. 31. . . 3,534 4,217 4,787 5,347 3,725,241 4,718,818 5,452,498 6,563,048 1,245,711 999,394 1,428,253 1,153,756 1,708,022 1,413,159 1,914,040 1 ,601,518 1,865,618 2,216,053 2,494,855 3,146,286 1944 Mar. 31 June 30 Sept. 30 Dec. 30 5,904 6,433 6,882 7,434 7,466,762 8,046,672 8,685,753 9,310,582 2,009,511 2,064,318 1,960,785 1,735,970 3,615,963 3,810,797 4,301,322 4,453,586 1945 Mar. 31 June 30 Sept. 30 Dec. 31 7,886 9,645,378 1,599,120 1,365,959 3,963,961 8,422 10,149,315 1,386,851 1,190,944 3,694,618 8,695 10,313,868 1,073,892 916,851 3,043,674 '966,595 8,757 10,339,400 510,270 •435,345 1946 Jan. 31 8,761 10,340,275 137,888 69,674 356,677 230,720 632,474 1,430,121 81,108 427,918 803,720 1,680,046 1,735,777 1,663,489 1,482,038 427,278 363,048 764,093 r Revised. NOTE.—The difference between guaranteed loans authorized and sum of loans outstanding and amounts available to borrowers under guarantee agreements outstanding represents amounts repaid, guarantees available but not completed, and authorizations expired or withdrawn. INDUSTRIAL LOANS BY FEDERAL RESERVE BANKS [Amounts in thousands of dollars] Number Approved Loans Commit- Particiments pations but not outoutcom- 1 standing2 outding standin standing pleted (amount) (amount) (amount) Amount (amount) 1934 1935 1936 1937 1938 1939 1940 1941 984 1,993 2,280 2,406 2,653 2,781 2.908 3,202 49,634 124,493 139,829 150,987 175,013 188,222 212,510 279,860 20,966 11,548 8.226 3,369 1,946 2,659 13,954 8.294 13,589 32,493 25,526 20,216 17,345 13,683 9,152 10,337 8,225 27,649 20,959 12,780 14,161 9.220 5,226 14,597 1,296 8,778 7,208 7,238 12,722 10,981 6,386 19,600 1942 June 24. Dec. 3 1 . 3,352 3,423 338,822 408.737 26,346 4,248 11,265 14,126 16,832 10,661 1943 June 30. Dec. 31. 3,452 3,471 475,468 491,342 3,203 926 13,044 10,532 12,132 9,270 19,070 17,930 1944 June 30. Dec. 30. 3,483 3,489 510,857 525,532 45 1,295 11,366 3,894 4,048 4,165 3,493 3,502 3,505 3,511 528,936 537,331 540,241 544,961 85 70 130 320 4,214 3,252 3,166 1,995 3,321 5,224 4,291 1,644 3,512 545,372 195 1,579 1,843 MARCH 1946 Chicago 876 864 939 921 5,654 5,625 6,394 6,357 3,882 3,848 4,576 4,590 1945—Dec. 28 1946—Jan. 4 Jan. 11 Jan. 18 Jan. 25 Feb. 1 Feb. 8 Feb. 15 Excess reserves: 1944—Dec 1945—Jan Dec 1946—Jan 15,828 15,914 15,954 16,110 15,908 15,782 15,767 15,696 4,065 4,037 4,054 4,078 4,071 4,074 4,065 4,027 919 919 923 933 922 911 905 901 6,307 6,349 6,368 6,443 6,342 6,295 6,264 6,250 4,537 4,608 4,610 4,655 4,573 4,502 4,533 4,518 .284 ,114 ,491 ,311 28 11 48 7 2 3 14 359 297 418 337 895 804 -•1,011 958 1945—Dec. 28 1946—Jan. 4 Jan. 11 Jan. 18 Jan. 25 Feb. 1 Feb. 8 Feb. 15 Borrowings at Federal Reserve Banks: 1944—Dec 1945—Jan Dec 1946—Jan ,356 ,466 ,398 ,433 ,224 Pl,193 *>1,196 PI,182 26 25 18 22 14 17 18 12 346 407 369 385 287 271 276 278 ••975 1,020 1,000 1,017 917 P899 P896 265 118 334 185 186 39 192 94 43 51 96 66 36 28 46 25 482 291 234 231 219 273 317 378 307 191 102 103 76 89 111 140 74 43 57 53 67 114 123 144 101 57 75 75 75 69 82 92 1945—Dec. 28 Jan. 4 Jan. 11 Jan. 18 Jan. 25 Feb. 1 Feb. 8 Feb. 15 p Preliminary ' Revised. i Weekly figures of excess reserves of all member banks and of country banks are estimates. Weekly figures of borrowings of all member banks and of country banks may include small amounts of Federal Reserve Bank discounts and advances for nonmember banks, etc. DEPOSITS OF COUNTRY MEMBER BANKS IN LARGE AND SMALL CENTERS * [Averages of daily figures. In millions of dollars] In places of 15,000 and over population In places of under 15,000 population Demand deposits except interbank2 Time deposits Demand deposits except interbank2 Time deposits 14,961 '17,187 17,523 5,926 7,275 7,415 9,485 '11,835 12,103 4,110 5,106 5.200 Boston New York Philadelphia. . . . Cleveland 2,257 3.428 1,264 1,554 804 1,866 651 831 371 1,159 970 1,098 210 1,021 762 714 Richmond Atlanta Chicago St. Louis 1,214 1,696 2,164 634 349 436 1,198 294 892 716 1,606 1,010 397 178 810 236 Minneapolis Kansas City Dallas San Francisco. . . 583 532 936 1,260 252 100 110 525 702 1,514 1,438 628 369 179 56 269 January 1945 December 1945 January 1946 1 Includes applications approved conditionally by the Federal Reserve Banks and under consideration by applicant. 2 Includes industrial loans past due 3 months or more, which are not included in industrial loans outstanding in weekly statement of condition of Federal Reserve Banks. NOTE.—The difference between amount of applications approved and the sum of the following four columns represents repayments of advances, and applications for loans and commitments withdrawn or expired. New York Reserve Country city banks banks* 3,756 3,711 4,118 4,054 1,046 Applications approved to date Central reserve city banks 14,168 14,048 16,027 15,921 2,365 2,501 2,018 1,086 1946 Jan.31. . Total reserves held: 1944—Dec 1945—Jan Dec 1946—Jan 11,063 2,706 1945 Mar. 31. June 30. Sept. 30. Dec. 31. Month, or week ending Friday 26,430. 17,305 Date (last Wednesday or last day of period) All member 1 banks r 1 Revised. Includes any banks in outlying sections of reserve cities which have been given permission to carry the same reserves as country banks. All reserve cities have a population of more than 15,000. 2 Includes war loan deposits, shown separately for all country banks in the table on the following page. 299 DEPOSITS, RESERVES, AND BORROWINGS OF MEMBER BANKS [Averages of daily figures.1 In millions of dollars] Gross demand deposits Class of bank and Federal Reserve district Total Interbank U. S. Government war loan deposits* Other Demand deposits ad- Net demand deposits* Time deposits5 Demand balances - due from domestic banks Reserves with Federal Reserve Banks Total Required Excess Borrowings at Federal Re- t serve Banks First half of January 1946 All m e m b e r banks 104,781 13 ,888 21,793 69,100 64,453 71,538 24 ,391 7,058 1 5 , 965 14 ,547 1,418 184 Central reserve city banks New York Chicago... 28,205 6,321 4 ,657 1 ,321 6,905 1,538 16,644 3,461 15,169 3,198 19,795 4,338 1 ,272 722 67 187 4 , 036 926 4 ,035 911 1 15 108 Reserve city banks Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 39,321 2,455 647 2,882 4,528 2,487 2,502 4,669 2,330 1,278 3,204 2,683 9,656 6 ,605 312 33 382 601 420 714 553 696 360 1 ,066 674 794 8,079 653 137 670 1,053 512 483 1,023 476 325 518 502 1,727 24,639 1,490 477 1,829 2,874 1,555 1,305 3,093 1,159 594 1,620 1,507 7,136 22,438 1,385 449 1,693 2,662 1,425 1,154 2,880 1,018 516 1,416 1,376 6,464 27,006 1,653 456 1,999 3,087 1,717 1,704 3,103 1,607 800 2,166 1,753 6,961 9 ,826 173 279 193 1 ,156 415 367 1 ,780 290 151 319 283 4 ,420 2,127 46 26 77 181 139 170 337 112 77 323 304 335 6 , 381 346 113 423 727 410 404 783 349 173 494 428 1, 731 5 ,989 341 108 411 687 368 363 727 338 169 > 452 368 1 ,657 391 5 5 12 41 41 41 56 10 4 42 61 73 54 5 1 5 Country banks Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 30,933 2,729 4,664 2.259 2,680 2,288 2,665 3,857 1,801 1,384 2,149 2,539 1,918 1 ,304 93 92 14 29 182 271 85 156 92 98 160 31 5,271 629 1,152 446 533 376 386 665 215 210 190 230 239 24,358 2,007 3,420 1,799 2,118 1,729 2,008 3,107 1,430 1,082 1,861 2,149 1,648 23,650 1,918 3,287 1,752 2,066 1,658 1,939 3,047 1,390 1,052 1,835 2,103 1,603 20,399 1,801 3,039 1,517 1,745 1,459 1,722 2,522 1,243 902 1,444 1,667 1,339 12 ,572 1 ,009 2 ,878 1 ,405 1 ,538 741 612 2 ,001 528 620 278 167 794 4,676 220 355 254 357 396 503 621 310 246 500 612 303 4 , 622 370 731 379 456 321 360 620 259 216 291 335 285 3 ,610 313 598 297 337 249 278 473 206 164 219 243 235 1,012 58 133 82 120 72 82 147 54 52 72 91 50 23 3 14 1 4 8 4 5 14 2 1 1 Second half of January 1946 All m e m b e r banks 104,397 13,409 21,522 69,466 65,201 72,186 24,542 6,679 15,880 14,670 1,210 187 Central reserve city banks New York Chicago 28,010 6,286 4,553 1,275 6,769 1,508 16,689 3,502 15,383 3,254 19,902 4,353 1,281 728 70 181 4,071 916 4,057 914 13 2 80 1 Reserve city banks Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 39,254 2,462 642 2,870 4,539 2,494 2,476 4,676 2,322 1,251 3,167 2,680 9,675 6,356 300 29 375 590 412 678 535 675 347 1,016 654 747 8,013 650 136 670 1,043 507 473 1,020 468 321 511 497 1,716 24,884 1,512 478 1,825 2,906 1,575 1,325 3,121 1,179 583 1,639 1,529 7,213 22,837 1,418 452 1,703 2,704 1,452 1,175 2,918 1,043 517 1,452 1,400 6, 6jO4 27,272 1,673 459 1,998 3,122 1,738 1,698 3,146 1,619 795 2,179 1,767 7,077 9,877 175 281 194 1,161 418 370 1,793 291 152 320 290 4,432 2,014 46 22 80 177 138 161 314 103 71 297 294 311 6,335 353 112 423 735 403 388 778 348 171 484 413 1,727 6,047 345 109 411 694 373 362 737 341 168 455 371 1,681 288 7 3 12 41 30 26 42 6 3 29 42 46 78 1 1 3 14 "9" 13 8 11 17 1 Country banks Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 30,847 2,707 4,687' 2,237 2,684 2,263 2,688 3,847 1,789 1,362 2,135 2,529 1,919 1,225 87 87 14 31 156 258 80 146 84 94 159 30 5,232 628 1,138 442 529 373 382 663 215 207 191 228 237 24,391 1,993 3,462 1,782 2,125 1,734 2,048 3,104 1,429 1,071 1,851 2,141 1,652 23,727 1,911 3,334 1,739 2,077 1,665 1,983 3,050 1,395 1,043 1,827 2,094 1,610 20,659 1,801 3,101 1,515 1,762 1,477 1,784 2,545 1,251 909 • 1,462 1,685 1,367 12,655 1,017 2,896 1,419 1,551 749 616 2,013 532 622 280 164 795 4,414 206 335 243 351 359 471 597 297 223 468 583 281 4,559 352 723 372 451 311 359 611 254 216 286 339 286 3,652 313 608 297 340 252 287 477 207 165 222 246 239 908 39 115 75 111 60 72 134 47 51 65 93 47 28 6 15 2 1 Averages of daily closing figures for reserves and borrowings and of daily opening figures for other columns, inasmuch as reserves required are based on deposits at opening of business. 2 Figures include Series E bond deposit accounts, but do not include certain other demand deposits of the U. S. Government with member banks and, therefore, differ from figures for U. S. Government deposits shown in other published banking data. See also footnote 3. 1 Preceding column minus (a) so-called "float" (total cash items in process of collection) and (b) U. S. Government demand deposits (other than war loan and Series E bond accounts) on the latest available call report date. 4 Demand deposits subject to reserve requirements, i. e., demand deposits other than war loan deposits, minus cash items in process of collection and demand balances due from domestic banks. 5 Includes some interbank and U. S. Government time deposits; the amounts on call report dates are shown in the Member Bank Call Report, 300 FEDERAL RESERVE BULLETIN UNITED STATES MONEY IN CIRCULATION, BY DENOMINATIONS [Outside Treasury and Federal Reserve Banks. In millions of dollars] End of year and month Total in circulation1 Coin and small denomination currency2 Large denomination currency2 Unassorted Total Coin 3$1 $2 $5 1933. 1934. 1935. 1936. 1937, 1938. 1939. 1940. 1941. 1942. 5,519 4,167 5,536 4,292 5,882 4,518 6,543 5,021 6,550 5,015 6,856 5,147 7,598 5,553 8,732 6,247 11,160 8,120 15,410 11,576 442 452 478 517 537 550 590 648 751 880 402 423 460 499 505 524 559 610 695 801 33 32 33 35 33 34 36 39 44 55 1944- -February.. . . March April May June July August September... October November... December. . . 1945—January February.... March April May June July August September... October November.. . December. . . 20,824 21,115 21,552 22,160 22,504 22,699 23,292 23,794 24,425 25,019 25,307 25,290 25,751 25,899 26,189 26,528 26,746 27,108 27,685 27,826 28,049 28,211 28,515 15,004 15,100 15,342 15,731 15,925 16,034 16,410 16,715 17,089 17,461 17,580 17,456 17,778 18,000 18,353 18,715 19,183 19,599 20,141 20,235 20,381 20,500 20,683 1,018 1,029 1,039 1,055 1,065 1,077 1,092 1,105 1,125 1,144 1,156 1,150 1,158 1,170 1,180 1,196 1,205 1,223 1,236 1,243 1,252 1,263 1,274 877 881 885 903 906 910 921 937 948 962 987 950 953 954 957 972 981 995 1,003 1,001 1,000 1,009 1,039 27,917 20,126 1,261 985 $1,000 $5,000 $10,000 $100 $500 1,342 1,326 1,359 1,501 1,475 1,481 1,576 1,800 2,545 4,096 1,360 364 618 1,254 337 577 1,369 358 627 1,530 399 707 1,542 387 710 1,714 409 770 2,048 460 919 2,489 538 1,112 3,044 724 1,433 3,837 1,019 1,910 125 112 122 135 139 160 191 227 261 287 237 216 239 265 288 327 425 523 556 586 8 5 7 7 6 17 20 30 24 9 10 7 16 18 12 32 32 60 46 25 8 10 5 8 7 5 2 4 4 3 5,832 5,905 6,040 6,198 6,326 6,388 6,562 6,731 6,960 7,157 7,224 7,, 242 7,381 7,539 7,754 7,911 8,193 8,400 8,700 8,816 9,004 9,095 9,201 5,823 6,017 6,212 6,431 6,581 6,667 6,884 7,081 7,339 7,561 7,730 7,837 7,974 7,900 7,837 7,814 7,565 7,511 7,546 7,592 7,671 7,713 7,834 3,054 3,152 3,270 3,371 3,458 3,516 3,642 3,765 3,918 4,056 4,153 4,228 4,317 4,266 4,210 4,192 4,044 4,013 4,038 4,071 4,123 4,154 4,220 426 444 456 473 481 487 502 516 532 546 555 566 571 550 527 513 483 472 466 464 461 457 454 777 814 836 887 912 911 929 939 963 981 990 990 994 965 932 909 868 847 832 825 816 811 801 9 9 9 9 9 9 9 9 10 10 10 10 10 9 9 8 8 8 8 8 7 7 7 22 22 23 23 22 22 22 22 23 23 24 21 24 23 33 33 31 32 22 21 21 20 24 3 1 1 2 2 2 2 2 2 3 3 3 1 1 1 1 2 2 2 2 2 2 2 2,217 6,568 9,027 7,794 2,316 4,224 445 779 7 22 $10 $20 719 771 815 906 905 946 1,010 1,129 1,355 1,693 1,229 1,288 1,373 1,563 1,56$ 1,611 1,772 2,021 2,731 4,051 70 70 70 72 72 73 75 75 76 78 81 77 75 73 73 73 73 73 73 72 71 71 73 1,952 1,951 1,964 2,003 2,010 2,016 2,053 2,078 2,103 2,129 2,150 2,102 2,135 2,132 2,151 2,186 2,215 2,250 2,301 2,288 2,274 2,279 2,313 5,255 5,265 5,344 5,498 5,544 5,569 5,706 5,789 5,877 5,990 5,983 5,936 6,076 6,132 6,238 6,377 6,515 6,659 6,826 6,815 6,779 6,783 6,782 69 Total $50 1,534 1,576 1,618 1,668 1,699 1,722 1,780 1,829 1,893 1,946 1,996 2,022 2,059 2,088 2,126 2,159 2,132 2,139 2,180 2,204 2,243 2,264 2,327 1 2 Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve Banks. Includes unassorted currency held in Treasury and Federal Reserve Banks and currency of unknown denominations reported by the Treasury 3 as destroyed. Paper currency only; $1 silver coins reported under coin. Back figures.—See Banking and Monetary Statistics, Table 112, pp. 415-416. UNITED STATES MONEY, OUTSTANDING AND IN CIRCULATION, BY KINDS [On basis of circulation statement of United States money. In millions of dollars] Money held in the Treasury Total outstanding, As security against Jan. 31, Treasury gold and 1946 cash silver certificates Gold Gold certificates Federal Reserves notes.. . Treasury currency—total. Standard silver dollars Silver bullion Silver certificates and Treasury notes of 1890. Subsidiary silver coin Minor coin United States notes Federal Reserve Bank notes National bank notes Total—January 31, 1946... December 31, 1945. January 31, 1945... 20,156 18,034 25,273 4,406 18,034 22,122 32,108 123 49 494 1,772 ,108 862 318 347 496 118 For Federal Reserve Banks and agents 336 1,772 15,168 2,815 1,283 359 51 23,867 3,999 51 24,388 4,075 53 21,533 3,704 136 2,293 2,287 2,371 15;168 15,047 15,558 136 117 1,828 819 306 307 487 117 13 7 5 3 1 20,142 19,967 20,217 Money in circulation1 Money held by Federal Reserve Jan. 31, Banks and Jan. 31, Dec, 31, 1945 1945 1946 agents 1,873 832 307 316 494 117 1,562 751 282 316 554 123 27,917 28,515 25,290 1 Outside Treasury and Federal Reserve Banks. Includes any paper currency held outside the continental limits of the United States; totals for other end-of-month dates shown in table above, totals by weeks in table on p. 293, and seasonally adjusted figures in table on p. 302. 2 Includes $1,800,000,000 Exchange Stabilization Fund and $156,039,431 held as reserve against United States notes and Treasury notes of 1890; the balance resulting from reduction in weight of the gold dollar, also included, is not shown in the circulation statement beginning July 31. 3 To avoid duplication, amount of silver dollars and bullion held as security against silver certificates and Treasury notes of 1890 outstanding is not included in total Treasury currency outstanding. 4 Because some of the types of money shown are held as collateral or reserves against other types, a grand total of all types has no special significance and is not shown. See note for explanation of these duplications. NOTE.—There are maintained in the Treasury—(i) as a reserve for United States notes and Treasury notes of 1890—$156,039,431 in gold bullion; (ii) as security for Treasury notes of 1890—an equal dollar amount in standard silver dollars (these notes are being canceled and retired on receipt); (iii) as security for outstanding silver certificates—silver in bullion and standard silver dollars of a monetary value equal to the face amount of such silver certificates; and (iv) as security for gold certificates—gold buHion of a value at the legal standard equal to the face amount of such gold certificates. Federal Reserve notes are obligations of the United States and a first lien on all the assets of the issuing Federal Reserve Bank. Federal Reserve notes are secured by the deposit with Federal Reserve agents of a like amount of gold certificates or of gold certificates and such discounted or purchased paper as is eligible under the terms of the Federal Reserve Act, or of direct obligations of the United States. Federal Reserve Banks must maintain a reserve in gold certificates of at least 25 per cent, including the redemption fund which must be deposited with the Treasurer of the United States, against Federal Reserve notes in actual circulation; gold certificates pledged as collateral may be counted as reserves. "Gold certificates" as herein used includes credits with the Treasurer of the United States payable in gold certificates. Federal Reserve Bank notes and national bank notes are in process of retirement. MARCH 1946 301 ANALYSIS OF CHANGES IN GOLD STOCK OF UNITED STATES [In millions of dollars] MONEY IN CIRCULATION WITH ADJUSTMENT FOR SEASONAL VARIATION [Outside Treasury and Federal Reserve Banks. In millions of dollars] Amount— unadjusted for seasonal variation Date End of year figures: 1939 1940 1941 ., 1942 1943 1944 1945 7 8 11 15 20 25 28 Amount— adjusted for seasonal variation Change in seasonally adjusted series1 598 732 160 410 449 307 515 +742 + 1,134 +2,428 + 4 250 +5,039 + 4 858 +3,208 Monthly averages of daily figures: 1944—September October November December 23,525 24,112 24,738 25,207 23,572 24,112 24,664 24,957 +468 +540 +552 +293 • 1945—January February March April May June July August September October November December 1946—January February 25,243 25.527 25,850 26 009 26,351 26,561 26,918 27,392 27,765 27,943 28,151 28,452 28,158 27,944 25,167 25,527 25,928 26,219 26,537 26,694 26,972 27,530 27,821 27,943 28,067 28,170 28,074 27,944 +210 +360 +401 +291 +318 +157 +278 +558 +291 + 122 + 124 + 103 -96 -130 Gold stock at end of period Period 19342 1935 1936 1937 1938 1939 1940 1941 1942. 1943 1944 1945 Increase in gold stock 8 238 4 202 5 1,887 2 10,125 11 258 1 132 5 312,760 1 502 5 14 512 1 751 5 17,644 3 132 0 21 995 4 351 2 22,737 741 8 22,726 -10.3 21,938 — 788 5 20 619 — 1 319 0 —553 9 20,065 3 1945—February.. . March April May June July August September.. October November.. December. . 1946—January.. . . February... Jan.-Feb 20,506 20,419 20,374 20,270 20,213 20,152 20,088 20,073 20,036 20,030 20,065 20,156 P2O,232 P20,232 Earmarked gold: decrease or increase (—) Net gold import 1 1 1 1 1 3 4 133 0 739 0 116 (S 585 s 973 574 ? 744 s 982 4 315 7 68 9 —845 A — 106 3 -43.8 -87.3 -45.1 -103.3 —57 3 -60.6 -64.6 -15.0 -36.9 -6.2 35.2 91.0 P76.2 P167.2 1.9 -19.1 2 -18 —83 _7 -12 13 -4 4 s 0 3 5 3 8 19 3 P154 1 (4 ) e 82 6 2 —85 9 — 200 4 —333 5 —534 4 —644 7 —407 7 -458.4 —803 6 —459 8 —356 7 -37.4 -46.9 -53.2 -66.9 96 0 -100.3 -63.0 -19.0 34.6 -38.2 -4.3 5c —12 5 s-5.8 6 -18.3 Domestic gold production1 92 9 110 7 131 6 143 9 148 6 161 7 170 2 169 1 125.4 48 3 35 8 34 8 2.3 2.4 2.3 2 6 25 2.1 3.4 2.9 3.8 4.0 3.8 /3.8 /3.8 P7.7 e P Preliminary. / Figure carried forward. Corrected. Annual figures through 1944 are estimates of the United States Mint. Annual figure for 1945 and monthly figures are those published 1 in table on p. 342, adjusted to exclude Philippine Islands production For end of year figures, represents change computed on absolute received in United States. amounts in first column. 2 NOTE.—For discussion of seasonal adjustment factors and for back Figures based on rate of $20.67 a fine ounce in January 1934 and figures on comparable basis see September 1943 BULLETIN, pp. 822-826. $35 a fine ounce thereafter. 3 Because of an apparent recent change in the seasonal pattern around Includes gold in the Inactive Account amounting to 27 million the year end, adjustment factors have been revised somewhat for dates dollars on Dec. 31, 1936, and 1,228 million on Dec. 31, 1937. affected, beginning with December 1942; seasonally adjusted figures * Not yet available. 6 for money in circulation, as shown in Banking and Monetary Statistics, Gold held under earmark at the Federal Reserve Banks amounted Table 111, p. 414, and described on p. 405, are based on an older series to 4,312.1 million dollars on Feb. 28, 1946. (Corrected figure for of adjustment factors. Jan. 31 is 4,306.4 million.) All of this was earmarked directly for foreign account except 102.8 million dollars which was earmarked in the name of a domestic bank as security for a foreign loan. NOTE.—For back figures, see Banking and Monetary Statistics, Table 156, pp. 536-538, and for description of statistics see pp. 522-523 in the same publication. BANK DEBITS AND DEPOSIT TURNOVER [Debits in millions of dollars] Debits to total deposit accounts except interbank accounts 1 Annual rate of turnover of total deposits except interbank Year and month Total, all reporting centers New York City 1 140 other centers1 Other reporting centers2 1937 1938 1939 1940 1941 1942—old series3 1942—new series3 1943 1944 1945 469,463 405,929 423,932 445,863 537,343 607,071 641,778 792,937 891,910 '•974,102 197,836 168,778 171,382 171,582 197,724 210,961 226,865 296,368 345,585 »-404,543 235,206 204,745 218,298 236,952 293,925 342,430 347,837 419,413 462,354 479,760 36,421 32,406 34,252 37,329 45,694 53,679 67,074 77,155 83,970 '89,799 1945—January February March April May 82,756 70,249 81,077 74,139 81,724 98,024 79,163 73,208 71,169 81,616 79,401 '•101,577 89,132 34,990 29,065 31,884 29,413 33,678 41,725 33,590 29,388 28,545 34,984 32,246 45,035 38,819 40,305 34,724 41,722 37,846 40,643 47,716 38,286 36,767 35,718 39,006 39,255 47,774 41,977 7,461 6,461 7,471 6,881 7,403 8,583 7,287 7,054 6,906 7,626 7,900 ''8,766 8,337 June July August September October November December 1946—January New York City 333 other reporting centers Debits to demand deposit accounts except interbank and Government Annual rate of turnover of demand deposits except interbank and Government New York City 100 other leading cities New York City 100 other leading cities 215,090 186,140 200,636 217,744 270,439 308,913 369,396 403,400 412,800 29.5 25.1 21.0 17.1 17.3 18.0 20.5 22.4 24.2 22.4 19.9 19.4 18.6 19.4 18.4 17.4 17.3 16.1 34,801 30,024 36,008 32,430 34,418 41,870 32,662 30,796 30,631 33,474 34,616 41,070 35,546 27.0 24.3 22.9 20.8 21.4 28.9 25.6 19.7 22.9 22.4 23.5 31.8 28.3 16.9 16.0 16.1 15.5 15.3 18.9 16.1 13.7 14.9 14.4 16.5 19.5 16.2 . •••-••• 16.5 17.1 18.3 u.i 11.7 10.8 9.7 193,143 164,945 167,939 167,373 193,729 200,337 258,398 298,902 351,602 18.6 17.7 17.0 17.2 18.8 22.0 17.5 14.4 16.5 18.1 18.1 23.1 18.5 9.9 9.7 10.0 9.9 10.1 11.3 9.2 8.2 9.1 8.8 9.9 10.9 9.1 30,826 • 25,416 28,924 25,115 28,384 36,951 29,190 24,803 26,534 29,990 28,423 37,046 34,165 r 1 2 3 Revised. National series for which bank debit figures are available beginning with 1919. Annual figures for 1936-1942 (old series) include 133 centers; annual figures for 1942 (new series) and subsequent figures include 193 centers. See p. 717 of August 1943 BULLETIN for description of revision beginning with May 1942; deposits and debits of new series for first four months of 1942 partly estimated. NOTE.—Debits to total deposit accounts, except interbank accounts, have been reported since 1942 for 334 reporting centers; the deposits from which rates of turnover have been computed have likewise been reported by most banks and have been estimated for others. Debits to demand deposit accounts, except interbank and U. S. Government, and the deposits from which rates of turnover have been computed have been reported by member banks in 101 leading cities since 1935; yearly turnover rates in this series differ slightly from those shown in Banking and Monetary Statistics, Table 55, p. 254, due to differences in method of computation. 302 FEDERAL RESERVE BULLETIN DEPOSITS AND CURRENCY—ADJUSTED DEPOSITS OF ALL BANKS AND CURRENCY OUTSIDE BANKS [Figures partly estimated. In millions of dollars] Total deposits adjusted and currency outside banks Total demand deposits adjusted and currency outside banks Total deposits . adjusted Demand deposits adjusted1 1929—June December 55,171 54,713 26,179 26,366 51,532 51,156 1933—June December 41,680 42,548 19,172 19,817 36,919 37,766 22,540 22,809 14,411 15,035 1937—June December 1938—June December 1939—June December 1940—June December 57,258 56,639 56,565 58,955 60,943 64,099 66,952 70,761 30,687 29,597 29,730 31,761 33,360 36,194 38,661 42,270 51,769 51,001 51,148 53,180 54,938 57,698 60,253 63,436 1941—June December 1942—June December 1943—June December 1944—June December 74,153 78,231 81,963 99,701 110,161 122,812 136,172 150,988 45,521 48,607 52,806 62,868 71,853 79,640 80,946 90,435 151,200 150,800 150,600 150,900 152,600 June 162,785 July* 163,500 August P 163,400 September*.... 162,800 OctoberP 163,800 November*.. .. 168,100 December* . . . . 175,000 1946—January? 176.400 92,300 93,800 95,100 98,100 100,800 94,150 97,600 100,000 101,600 104,500 107,000 101,900 102,700 End of month 1945—January February March April May Time deposits United States Government deposits2 Currency outside banks Total Commercial banks 3 * Mutual savings banks 4 Postal Savings System 5 381 158 28,611 28,189 19,557 19,192 8,905 8,838 149 159 3,639 3,557 852 1,016 21,656 21,715 10,849 11,019 9,621 9,488 1,186 1,208 4,761 4,782 25,198 23,959 24,313 25,986 27,355 29,793 31,962 34,945 666 824 599 889 792 846 828 753 25,905 26,218 26,236 26,305 26,791 27,059 27,463 27,738 14,513 14,779 14,776 14,776 15,097 15,258 15,540 15,777 10,125 10,170 10,209 10,278 10,433 10,523 10,631 10,658 1,267 1,269 1,251 1,251 1,261 1,278 1,292 1,303 5,489 5,638 5.417 5,775 6,005 6,401 6,699 7,325 65,949 68,616 71,027 85,755 94,347 103,975 115,291 127,483 37,317 38,992 41,870 48,922 56,039 60,803 60,065 66,930 753 1,895 1,837 8,402 8,048 10,424 19,506 20,763 27,879 27,729 27,320 28,431 30,260 32,748 35,720 39,790 15,928 15,884 15,610 16,352 17,543 19,224 21,217 24,074 10,648 10,532 10,395 10,664 11,141 11,738 12,471 13,376 1,303 1,313 1,315 1,415 1,576 1,786 2,032 2,340 8,204 9,615 10,936 13,946 15,814 18,837 20,881 23,505 127,500 126,700 126,400 126,400 127,800 137,688 138,000 137,400 136,600 137,400 141,600 148,200 150,200 68,600 69,700 70,900 73,600 76,000 69,053 72,100 74,000 75,400 78,100 80,500 75,100 76,500 18,300 15,600 13,400 9,800 8,200 24,381 20,800 17,300 14,300 11,700 13,100 24,600 24,600 40,600 41,400 42,100 43,000 43,600 44,254 45,100 46,100 46,900 47,600 48,000 48,500 49,100 24,600 25,200 25,700 26,300 26,700 27,171 27,800 28,500 29,100 29,600 29,800 30,200 30,600 13,600 13,700 13,900 14,100 14,300 14,426 14,600 14,800 15,000 15,100 15,300 15,400 15.500 2,400 2,500 2,500 2,600 2,600 2,657 2,700 2,800 2,800 2,900 2,900 2,900 3,000 23,700 24,100 24,200 24,500 24,800 25,097 25,500 26,000 26,200 26.400 26,500 26,800 26,200 Preliminary. rRevised. includes demand deposits, other than interbank and U. S. Government, less cash items in process of collection ay ese ote dU Governm 2 B i i Beginning with D b ith December 1938 i l d 1938, includes U i t d S tt t s T United States Treasurer's ti * deposits, open account. ' s tint* ded i t 0 Excludes interbank t m e deposits and postal savings redeposited in banks. time redepoitd i b k trba 4 B i i i l b k fi ld Beginning J June 1941 the commercial bank figures exclude and mutual sayings bank figures include three member mutual savings banks 1941, h 6 Includes both amounts redeposited in banks and amounts not so redeposited; excludes amounts at banks in possessions. NOTE.—Except on call dates, figures are rounded to nearest 100 million dollars. See Banking and Monetary Statistics, p. 11, for description and Table 9, pp. 34-35, for back figures. POSTAL SAVINGS SYSTEM BANK SUSPENSIONS l [In millions of dollars] Assets DeposEnd of month itors' balances1 Total Cash in depository banks U. S. Government securities Total Direct 1939—Dec... 1,279 1940—Dec.. . 1,304 1941—Dec.. . 1,314 1942—Dec.. . 1,417 1943—Dec... 1,788 1944—Dec.. . 2,342 1,319 1,348 1,396 1,464 1,843 2,411 53 36 26 16 10 8 1,192 1,224 1,274 1,345 1,716 2,252 1,046 1,078 1,128 1,220 1,716 2,252 1945—Jan. . . Feb.. . Mar... Apr.. . May.. June. . July.. Aug.. . Sept... Oct. .. Nov... Dec. .. 1946—Jan.... 2,477 2,536 2,590 2,646 2,696 2,751 2,809 2,867 2,921 2,968 8 8 8 8 8 8 7 8 8 6 2,308 2,363 2,426 2,463 2,518 2,574 2,625 2,674 2,737 2,780 2,308 2,363 2,426 2,463 2,518 2,574 2,625 2,674 2,737 2,780 2,404 2,458 2,513 2,563 2,609 2,659 2,720 2,785 2,836 2,880 P2.910 P2.930 Cash reserve Guar- funds, anetc.2 teed 146 146 146 126 74 88 95 102 118 152 162 164 156 175 170 169 176 185 176 182 P2,979 p Preliminary. Outstanding principal, represented by certificates of deposit. Includes working cash with postmasters, 5 per cent reserve fund and miscellaneous working funds with Treasurer of United States, accrued interest on bond investments, and accounts due from late postmasters. Back figures.—See Banking and Monetary Statistics, p. 519; for description, see p. 508 in the same publication. 1 2 MARCH 1946 Number of banks suspended: 1934-39 1940.. . . 1941 1942 1943. . . 1944 1945 1946—Jan -Feb Nonmember banks Member banks Total, all banks National 291 15 22 8 9 4 4 2 1 0 0 Non- InState sured insured 6 189 81 18 3 6 3 1 3 2 1 Deposits of suspended banks (in thousands of dollars) :2 1934-39 . . 125,991 14 616 26,548 44,348 40,479 1940. 1941 1942 1943 1944 1945 1946—Jan.-Feb 5,943 256 3,726 3 144 1,702 6,223 '4^982 405 0 0 5,341 503 1,375 1,241 405 346 79 327 1 Represents banks which, during the periods shown, closed temporarily or permanently on account of financial difficulties; does not include banks whose deposit liabilities were assumed by other banks at the time of closing (in some instances with the aid of Federal Deposit Insurance Corporation loans). 2 Deposits of member banks and insured nonmember banks suspended are as of dates of suspension, and deposits of noninsured nonmember banks are based on the latest data available at the time the suspensions were reported. Back figures.—See Banking and \Monetary Statistics, pp. 283-292; for description, see pp. 281-282 in the same publication. 303 BANKS IN THE UNITED STATES, BY CLASSES* LOANS, INVESTMENTS, DEPOSITS, AND NUMBER OF BANKS [Amounts in millions of dollars] Loans and investments Class of bank and call date Deposits Investments Other Total Total U.S. Government obligations Other securities Loans Total1 Interbank* Number of banks Demand Time All banks: 1938—Dec. 31. 1939—Dec. 30. 1940—Dec. 31. 1941—Dec. 31. 1942—Dec. 31. 1943—Dec. 31. 1944—June 30. . ; Dec. 30. 1945- -Tune 30. Dec. 31 • 48,831 50,885 54,170 61,101 78,137 96,966 108,70-7 119,461 129.639 139,750 21,261 22,169 23,751 26,616 23,915 23,601 25,424 26,015 27,979 30,500 27,570 28,716 30,419 34,485 54,222 73,365 83,284 93,446 101,661 109,250 17,953 19,402 20,983 25,488 45,932 65,932 75,737 85,885 93,657 100,700 9,617 9,314 9,436 8,997 8,290 7,433 7,547 7,561 8,004 8,550 61,319 68,225 75,963 81,780 99,796 117,661 128,605 141,449 151,033 164,550 7,484 28.695 9,883 32,492 38,518 10,941 10,989 44,316 61,395 11,318 75,561 11,012 11,219 83,588 91,644 12,245 96,725 12,605 14,100 104,650 25,140 25,850 26,504 26,476 27,083 31,08a 33,797 37,559 41,702 45,800 15,207 15,035 14,895 14,825 14,682 14,579 14,553 14,535 14,542 14,553 All commercial banks: 1938—Dec. 31 1939—Dec. 30 1940—Dec. 31 1941—Dec. 31 1942—Dec. 31 1943—Dec. 31 1944—June 30 Dec. 30 1945—Tune 30 Dec. 3 1 " 38,669 40,667 43.922 50,722 67,391 85,095 95,731 105,530 114,505 123,450 16,364 17,243 18,792 21,711 19,217 19,117 21,010 21,644 23,672 26,150 22,305 23,424 25,130 29,011 48,174 65,978 74,722 83,886 90.833 97,300 15,071 16,300 17.T59 21,788 41,373 59,842 68,431 77,558 84,069 90,000 7,234 7,124 7,371 7,223 6,801 6,136 6,290 6,329 6,764 7,300 51,041 57,702 65,305 71,248 89,132 105,923 116,133 128,072 136,607 149,150 7,484 28,695 9,883 32,492 38,518 10,941 10,989 44,316 11,318 61,395 75,561 11,012 11,219 83,588 12,245 91,644 12,605 96,725 14,100 104,650 14,862 15,32? 15,846 15,944 16,419 19,350 21,326 24,183 27.276 30,400 14,652 14,484 14,344 14,277 14,136 14,034 14,009 13,992 14,000 14,014 All insured commercial banks: 1938—Dec. 31 1939—Dec. 30 1940— Dec. 31 1941—Dec. 31 1942—Dec. 31 1943—Dec. 31 1944—June 30 Dec. 30 1945—June 30 37,470 39,289 42,556 49,288 66,240 83,507 93,936 103,382 112,353 16,021 16,863 18,394 21,258 18,903 18,841 20,729 21,352 23,376 21,449 22,426 24,161 28,030 47,336 64.666 73,207 82,030 «8,978 14,506 15,566 17,063 21,046 40,705 58,683 67,085 75,875 82,401 6,943 6,859 7,098 6,984 6,631 5,983 6,122 6,155 6,577 49,772 56,069 63,461 69,411 87,803 104.094 114,145 125,714 134,245 7,254 9,523 10,539 10,654 11,144 10,705 11,038 12,074 12,401 27,849 31,483 37,333 43,061 60,504 74,309 82,061 89,761 94,910 14,669 15,063 15,589 15,697 16,154 19,081 21,045 23,87926,934 13,655 13,531 13,438 13,426 13,343 13,270 13,264 13,263 13,277 32,070 33,941 37,126 43,521 59,263 74,258 83,587 91,569 99,426 107,150 13,208 13,962 15,321 18,021 16,088 16,288 18,084 18,676 20,588 22,800 18,863 19,979 21,805 25,500 43,175 57,970 65,503 72,893 78,838 84,350 13,223 14,328 15,823 19,539 37,546 52,948 60,339 67,685 73.239 78,300 5,640 5,651 5,982 5,961 5,629 5,022 5,164 5,208 5,599 6,050 43,363 49,340 56,430 61,717 78,277 92,262 101,276 110,917 118.378 129,500 7,153 9,410 10,423 10,525 11,000 10,555 10,903 11,884 12,230 13,750 24,842 28,231 33,829 38,846 54,523 66,438 73,488 79,774 84,400 91,450 11,369 11,699 12,178 12,347 12,754 15,268 16,884 19,259 21.748 24,300 6,338 6,362 6,486 6,619 6.679 6,738 6,773 6,814 6.840 6,884 All national banks: 1938—Dec. 3 1 . . . 1939—Dec. 30. . . 1940—Dec. 3 1 . . . 1941—Dec. 3 1 . . . 1942—Dec. 3 1 . . . 1943—Dec. 3 1 . . . 1944—June 30. . . Dec. 30. . . 1945—June 30. . . 20,903 21,810 23,648 27,571 37,576 47,499 53,343 58,308 63,177 8,469 9,022 10,004 11,725 10,183 10,116 11,213 11,480 12,369 12,434 12,789 13,644 15,845 27,393 37,382 42,129 46,828 50,808 8,691 9,058 9,735 12,039 23,744 34,065 38,640 43,292 47,051 3,743 3,731 3,908 3,806 3,648 3,318 3,490 3,536 3,757 27,996 31,559 35,787 39,458 50,468 59,961 65,585 71,858 76,533 4,499 5,898 6,574 6,786 7,400 7,159 7,402 8,056 8,251 15,587 17,579 20,885 24,350 34,499 42,605 46,879 50,900 53,698 7,910 8,081 8,329 8,322 8,570 10,196 11,304 12,901 14,585 5,224 5,187 5,144 5,117 5,081 5,040 5,036 5,025 5,015 State member banks: 1938—Dec. 31 1939—Dec. 30 1940—Dec. 31 2 1941—Dec. 31 1942—Dec. 31 1943—Dec. 31 1944—June 30 Dec. 3 0 . . . . . 1945—June 30 11,168 12,130 13,478 15,950 21,687 26,759 30,244 33,261 36,249 4,738 4,940 5,316 6,295 5,905 6,171 6,870 7,196 8,219 6,429 7,190 8,162 9,654 15,783 20,588 23,373 26,065 28,030 4,532 5,271 6,088 7,500 13,802 18,883 21,699 24,393 26,188 1,897 1,920 2,074 2,155 1,980 1,705 1,674 1,672 1,842 15,367 17,781 20,642 22,259 27,808 32,302 35,690 39,059 41,844 2,653 3,512 3,849 3,739 ,600 3,397 3,501 3,827 3,980 9,255 10,652 12,944 14,495 20,024 23,833 26,609 28,874 30,702 3,459 3,617 3,849 4,025 4.184 5,072 5,580 6,357 7,163 1,114 1,175 1,342 1,502 1,598 1,698 1,737 1,789 1,825 All member banks: 1938—Dec. 31... 1939—Dec. 30... 1940—Dec. 31... 1941—Dec. 312... 1942—Dec. 31. . . 1943—Dec. 31. . . 1944—June 30. .. Dec. 30... 1945—June 30. . . Dec. 31 «... ' Estimated. Figures have been rounded to the nearest 50 million dollars. * These figures do not include data for banks in possessions of the United States and therefore differ from those published by the Comptroller of the Currency and the'Federal Deposit Insurance Corporation for national banks and insured banks, respectively. 1 Beginning June 30, 1942, excludes reciprocal bank balances, which on Dec. 31, 1942, aggregated 5,13 million dollars at all member banks and 525 million at all insured commercial banks. 8 During 1941 three mutual savings banks, with total deposits of 8 million dollars, became members of the Federal Reserve System. These banks are included in both "member banks" and "insured mutual savings banks," are not included in "commercial banks," and are included only 8once in "all banks." Decreases in "noninsured nonmember commercial banks" figures reflect principally the admission to membership in the Federal Reserve System of one large bank with total loans and investments aggregating 554 million dollars on Dec. 31, 1942. * Beginning June 30, 1942, includes Bank of North Dakota, a nonmember bank not previously included in these statistics; on Dec. 31, 1941, its deposits, excluding interbank deposits, were 33 million dollars and ks loans and investments 26 million. Backfigures.—SeeBanking and Monetary Statistics, Tables 1-7, pp. 16-23; for description, see pp. 5-15 in the same publication. 304 FEDERAL RESERVE BULLETIN ALL BANKS IN THE UNITED STATES, BY CLASSES '—Continued LOANS, INVESTMENTS, DEPOSITS, AND NUMBER OF BANKS [Amounts in millions of dollars] Loans and investments Deposits Investments Class of bank and call date Total Loans Total U. S. Government obligations All n o n m e m b e r commercial b a n k s : 1938—Dec 31 1939—Dec. 30 ... . . . . 1940—Dec 31 1941—Dec. 31 . . . . 1942—Dec. 31 1943—Dec 31 1944—June 30 Dec 30 1945—June 30 Dec. 31 « 6,598 6,726 6,796 7,208 8,135 10,847 12,155 13,972 15,091 16,300 3,156 3,281 3,471 3,693 3,132 2,832 2,929 2,971 3,087 3,350 3,442 3,445 3,325 3,515 5,003 8,014 9,226 11,002 12,005 12,950 Insured n o n m e m b e r commercial banks: 1938-—Dec 31 1939—Dec. 30 1940—Dec 31 1941—Dec. 31 1942—Dec 31 1943—Dec. 31 1944—June 30 Dec. 30 1945—June 30 5,399 5,348 5,429 5,774 6,984 9,258 10,360 11,824 12,940 2,813 2,901 3,074 3,241 2,818 2,556 2,648 2,678 2,790 2,586 2,447 2,356 2,533 4,166 6,702 7,712 9,146 10,150 1,283 1,238 1,240 1,509 3,162 5,739 6,752 8,197 9,170 1,199 1,378 1,367 1,434 1,151 1,588 1,795 2,148 2,152 343 380 856 998 565 733 397 452 314 276 281 292 297 969 982 837 1,312 1,514 1,856 1,855 696 742 667 1,160 1,347 1,682 1,668 10,162 10,218 10,248 10,379 10,746 11,871 12,976 13,931 15,134 16, 300 4,897 4,926 4,959 4,905 4,698 4,484 4,414 4,370 4,307 4,350 5,265 5,292 5,289 5,474 6,048 7,387 8,562 9,560 10,827 11,950 2,883 3,102 3,224 3,700 4,559 6,090 7,306 8,328 9,588 10,700 972 1,329 1,655 1,693 2,007 7,525 8,489 9,223 10,063 461 605 637 642 740 3,073 3,111 3,110 3,089 511 724 1,018 1,050 1,267 4,452 5,378 6,113 6,974 280 422 548 629 861 3,844 4,752 5,509 6,368 9,190 8,889 8,593 8,686 8,739 4,345 4,487 4 708 5,071 4,436 4,321 4,322 4,263 3,958 1,411 1,302 1 260 1,218 4,754 4,568 4,271 4,424 4,781 2,935 3,185 3 448 3,853 2,603 2,680 2,676 3,071 3,698 2,246 2,554 2 819 3,220 Noninsured n o n m e m b e r commercial banks: 1938—Dec 31 1939—Dec. 30 1940—Dec. 31 1941—Dec. 31 1942—Dec 313 4 1943—Dec 31 1944—j u n e 30 Dec 30 1945—j u n e 30 All m u t u a l savings b a n k s : 1938—Dec. 31 1939—Dec. 30 1940—Dec 312 . 1941—Dec. 31 1942—Dec. 31 1943—Dec. 31 1944—June 30 Dec. 30 1945—June 30 e Dec 31 » Insured m u t u a l savings b a n k s : 1938—Dec 31 1939—Dec. 30 1940—Dec 312 1941—Dec 31 1942—Dec. 31 1943—Dec. 31 . . . '. 1944—ijune 30 Dec. 30 I945—June 30 Noninsured m u t u a l savings b a n k s : 1938—Dec 31 1939—Dec 30 1940—Dec. 31 1941—Dec 31 1942—Dec 31 1943 Dec 31 1944—June 30 Dec 30 1945—June 30 Other Other securities 1,848 1 SQ4 1,971 474 1,936 ,389 2 251 264 3,829 ,174 6 899 115 .128 8,099 9 880 1 122 10,839 1,166 11,700 1,250 Total 1 Interbank 1 Number of banks Demand Time 7,678 8,362 8,875 9,539 10,864 13,671 14,869 17 168 18,242 19,650 331 473 518 464 318 457 315 362 375 350 3,853 4,260 4,689 5,470 6,872 9,123 10,100 11,870 12,326 13,200 3,493 3 629 3,668 3 605 3,674 4 091 4,453 4 936 5,541 6,100 8,314 8,122 7,858 7,661 7,460 7,299 7,239 7,181 7,163 7,130 1,303 1,209 1,116 1,025 1,004 962 960 949 979 6,409 6,729 7,032 7,702 9,535 11,842 12,880 14,809 15,880 101 113 116 129 145 149 135 190 171 3,007 3,252 3,504 4,215 5,981 7,870 8,573 9,987 10,510 3,300 3,365 3,411 3,358 3,409 3,823 4,172 4,632 5,199 7,317 7,169 6,952 6,810 6,667 6,535 6,494 6,452 6,440 291 265 273 239 170 153 168 174 187 1,269 1,633 1,843 1,837 1,329 1 829 1,989 2 358 2,362 230 360 402 335 173 307 181 171 204 846 1,008 1,185 1,255 891 1,253 1,527 1,883 1,815 193 264 257 247 265 269 281 304 343 997 953 906 851 793 764 745 729 723 2,382 2,190 750 10,278 10,523 10 658 10,532 10,664 11,738 12,471 13,376 14,426 15,400 10,278 10,523 10 658 10,532 10,664 11,738 12,471 13,376 14,426 15,400 555 551 551 548 546 545 544 543 542 539 232 303 470 421 405 608 626 604 607 1,012 1,409 1,818 1,789 2,048 7i(534 8 235 8,910 9,671 1,012 1,409 1,818 1,789 2,048 7,534 8,235 8,910 9,671, 48 51 53 52 56 184* 192 192 192 2,150 1,887 1,595 1,353* 1,084 689 631 629 633 9,266 9,114 8,840 8,743 8,616 4,204 4,236 4 466 4,754 9,266 9,114 8,840 8,743 8,616 4,204 4,236 4 466 4,754 507 500 498 496 490 361 352 351 350 ? 065 L,774 ,489 L ,297 1,257 L, 232 ,240 For footnotes see page 304. MARCH 1946 305 ALL INSURED COMMERCIAL BANKS IN THE UNITED STATES, BY CLASSES* LOANS AND INVESTMENTS [In millions of dollars] Loans Class of bank and Total loans call date and investments Investments Loans for purchasing or carrying securities Commercial, in- U. S. Government obligations Obliga- AgriRealesclud- culCon- Other ing tur- T o tate sumer loans Total Total open- al brokloans loans ers To market a n d others paper deal- Direct Total ers tions of States Other CerGuar- a n d secuan- politi- rities tinBills cates Notes teed cal of inBonds subdebtdiviedsions ness All insured commercial banks .-i 1938—Dec. 31 37,470 1940—Dec. 3 1 . . . 42,556 1941—Dec. 3 1 . . . 49,288 1942—Dec. 3 1 . . . 66,240 1943—Dec. 3 1 . . . 83,507 1944—June 3 0 . . . 93,936 Dec. 30. . . 103,382 1945—June 30. .. 112,353 16,021 18,394 21,258 18,903 18,841 20,729 21,352 23,376 5,636 7,178 9,214 7,757 7,777 7,406 7,920 7,501 1,060 1,281 1,450 1,642 1,505 1,474 1,723 1,632 3,857 4,468 4,773 4,646 1,414 4,437 2,221 2,296 4,364 2,269 2,265 4,343 3,113 3,601 4,413 3 583 4,077 4,545 2,269 1,042 1,868 918 1,862 1,106 1,888 944 2,108 1,008 21,449 24,161 28,030 47,336 64,666 73,207 82,030 88,978 14,506 17,063 21,046 40,705 58,683 67,085 75,875 82,401 Member banks,1 total: 1938—Dec. 31. . . 32,070 1940—Dec. 3 1 . . . 37,126 1941—Dec. 31. . . 43,521 1942—Dec. 3 1 . . . 59,263 1943—Dec. 31. . . 74,258 1944—June 30. . . 83,587 Dec. 30. . . 91,569 1945—June 30. .. 99,426 Dec. 31*. . 107,143 13,208 15,321 18,021 16,088 16,288 18,084 18,676 20,588 22,786 5,179 6,660 8,671 7,387 7,421 7,023 7,531 7,095 2,716 3,228 3,494 1,089 3,423 1,023 1,398 3,274 1,023 2,200 2,130 3,207 1,198 2,249 2,108 3,209 1,125 3,089 3,407 3,248 ? 853 3'273 3! 692 1,847 870 1,484 848 1,467 1,033 1,505 877 1,688 934 18,863 21,805 25,500 43,175 57,970 65,503 72,893 78,838 84,357 13,222 15,823 19,539 37,546 52,948 60,339 67,685 73,239 78,308 3,262 3,384 4,072 4,116 4,428 5,479 5,760 7,069 7,333 1,594 2,125 2,807 2,546 2,515 2,430 2,610 2,380 5 6 8 21 24 64 30 53 5,072 7,527 8,823 13,841 15,566 17,190 18,243 18,687 18,810 158 3,857 1,142 1,663 894 6,044 207 1 245 2 977 1,615 7,265 311 1,623 3,652 1,679 12,547 1,855 2,144 2,056 5,420 1,071 14,563 1,328 3,409 1,829 7,014 984 16,157 1,258 4,242 2,805 7,650 201 17,179 913 3,740 3,745 8,592 189 2 17,492 424 3,538 3,607 9,920 17,575 1,969 539 696 2,377 954 2,760 832 3,973 4,554 1,004 5,124 1,064 5,443 1,184 5,730 1,250 5,931 1,332 335 492 732 658 763 710 738 671 17 5 6 6 6 11 17 13 207 263 300 290 279 277 348 304 New York City:* 1938—Dec. 3 1 . . . 1940—Dec. 31. . . 1941—Dec. 31. . . 1942—Dec. 31. .. 1943—Dec. 3 1 . . . 1944—June 30. . . Dec. 30. .. 1945—June 30. . . Dec. 31*. . Chicago:2 1938—Dec. 31. . . 1940—Dec. 31. . . 1941—Dec. 31. . . 1942—Dec. 3 1 . . . 1943—Dec. 31. . . 1944—June 30. . . Dec. 30. . . 1945—June 30. . . Dec. 3 1 P . . 8,335 10,910 12,896 17,957 19,994 22,669 24,003 25,756 26,143 712 865 972 1,002 663 614 950 885 727 662 597 922 973 642 594 934 775 652 598 538 839 787 465 412 787 220 190 169 193 323 751 859 121 130 123 117 107 93 86 76 535 468 554 303 252 232 253 270 70 54 52 32 52 130 163 299 12 19 22 23 22 21 24 23 6*5 84 96 62 45 49 45 50 242 119 115 207 114 194 97 153 267 217 409 903 311 777 371 1,147 1,230 1,436 1,527 1,486 1,420 1,385 1,379 1,378 1,054 1,657 1,742 2,528 1,539 43 42 48 34 102 102 163 159 Reserve city banks: 1938—Dec. 31. . . 1940—Dec. 31. .. 1941—Dec. 31. . . 1942—Dec. 31. . . 1943—Dec. 3 1 . . . 1944—June 30. . . Dec. 30. . . 1945—June 30. . . Dec. 3 1P 11,654 13,013 15,347 20,915 27,521 30,943 33,603 36,572 40,104 4,-963 5,931 7,105 6,102 6,201 6,761 6,822 7,155 8 508 2,063 2,589 3,456 2,957 3,058 2,787 3,034 2,883 Country banks: 1938—Dec. 31. . . 1940—Dec. 31. . . 1941—Dec. 3 1 . . . 1942—Dec. 3 1 . . . 1943—Dec. 31. . . 1944—June 3 0 . . . Dec. 30. . . 1945—June 30. .. Dec. 3 1 P . . 10,113 10,826 12,518 16,419 22,188 24,850 28,520 31,368 34,966 4,444 5,309 5,890 5,038 4,654 4,780 4,910 5,114 5,612 1,186 483 25 21 1,453 590 1,676 659 20 17 1,226 772 1,084 713 - 25 33 1,096 671 32 1,149 . 802 32 1,162 755 148 153 251 179 223 18 14 40 34 34 1 :01 1*322 l!512 808 658 650 660 757 243 201 183 161 197 345 310 422 1,353 1,644 1,823 1,797 1,725 1,708 1,719 1,771 674 528 536 547 611 110 75 64 59 82 166 156 193 1,141 1,240 1,282 1,225 1,165 1,159 1,136 1,167 730 803 8*^4 422 385 395 383 420 312 301 350 313 315 1, 154 1 400 1,530 393 381 392 351 362 '6^727 13,218 15,466 15,300 17,204 3,648 8,000 2,568 2^756 9^925 3,719 3,159 12,797 4,102 5,799 20,999 2,718 7,672 30,656 2,501 11,834 34,114 963 15,778 39,848 978 43 16,454 45,870 6\285 12,071 14,228 13,982 15,584 3,389 2,594 3,007 5,409 6,906 10,640 14,127 14,723 290 662 988 4,462 4,636 4,708 3,971 2,831 286 652 971 4,363 4,360 4,466 3,748 2,633 7,208 2,340 2,448 3,192 9,091 3,486 3,013 2,970 11,729 3,832 3,090 2,871 18,948 2,540 2,965 2,664 27,265 2,345 2,729 2,294 30,118 887 2,834 2,331 34,927 902 2,857 2,350 33 3,102 2,497 40,266 3,253 2,797 517 695 729 593 444 456 468 567 606 698 788 830 701 558 577 596 629 629 141 188 182 166 158 204 160 154 181 176 186 193 186 155 169 185 196 204 1,224 2,997 740 808 984 771 3 281 1,049 956 751 4,248 1,173 1,723 6,810 811 954 749 913 2,497 9,943 3,893 10,689 402 963 440 1,000 5,181 11,987 10 1,100 5,689 13,906 1,126 866 893 820 821 726 735 740 794 911 1,430 1,681 1,806 3,141 3,550 4,060 4,258 4,480 4,598 1,114 1,307 1,430 2,789 3,238 3,688 3,913 4,130 4,213 59 297 256 397 199 367 250 127 6,691 7,081 8,243 14,813 21,321 24,183 26,781 29,417 31,596 5,018 5,204 6,467 13,038 19,682 22,484 25,042 27,523 29,559 57 103 295 5,669 5,517 6,628 11,380 17,534 20,071 23,610 26,253 29,354 3,233 11 732 l',893 45 433 2,081 3,269 110 4,377 481 2,926 9,172 671 " i ^251 1,240 5,436 15,465 1,032 3,094 2,096 8,705 18,009 926 3,362 3,355 10,114 21,552 882 3,466 4,422 12,540 24,094 762 4,194 4,613 14,504 26,961 1,441 1,802 1,914 1,704 1,320 "637 877 1,038 1,045 1,253 'i',253 4,691 5,586 5,730 6,598 3,011 3,932 3,608 3,491 3,651 3,333 3,533 3,098 3,287 2,696 3,393 2,730 3,422 2,733 3,684 2,892 291 145 153 391 484 587 779 814 655 752 903 1,282 1,602 1,665 1,809 1,936 109 112 119 83 74 31 31 597 710 861 574 538 252 241 21 982 1,453 1,146 1,102 1,222 1,028 1,252 956 1,214 855 1,212 849 1,230 829 1,281 878 1,340 1,053 Insured nonmember commercial banks: 1938—Dec. 31. .. 5,399 2,813 1940—Dec. 3 1 . . . 5,429 3,074 1941—Dec. 31. . . 5,774 3,241 1942—Dec. 3 1 . . . 6,984 2,818 1943—Dec. 31. . . 9,258 2,556 1944—June 30.. . 10,360 2,648 Dec. 30. . . 11,824 2,678 1945—June 30. . . 12,940 2,790 457 518 543 370 356 383 389 406 348 416 478 553 482 452 525 506 28 21 20 16 16 21 21 24 173 70 73 67 74 2,586 2,356 2,533 4,166 6,702 7,712 9,146 10,150 1,283 1,240 1,509 3,162 5,739 6,752 8,197 9,170 4 10 17 99 276 242 223 198 259 162 152 390 766 793 834 1 069 442 2,053 1,147 3,395 1,238 1,194 4,002 1,319 1,652 4,928 1,620 1,731 5,611 228 234 271 179 156 76 76 10 563 595 563 569 560 560 566 584 739 521 462 435 403 400 383 396 Preliminary. * These figures do not include data for banks in possessions of the United States and therefore differ from those published by the Federal Deposit Insurance Corporation. 1 During 1941 three mutual savings banks with total deposits of 8 million dollars became members of the Federal Reserve System. These banks are included in "member banks" but are not included in "all insured commercial banks." 2 Central reserve city banks. 306 FEDERAL RESERVE BULLETIN ALL INSURED COMMERCIAL BANKS IN THE UNITED STATES, BY CLASSES *—Continued RESERVES AND LIABILITIES fin millions of dollars] Time deposits Demand deposits Re- Class of bank and call date All insured Commercial banks: 1 1938—Dec. 3 1 . . 1940—Dec. 3 1 . . 1941—Dec. 3 1 . . 1942—Dec. 3 1 . . 1943—Dec. 3 1 . . 1944—June 30. . Dec. 3 0 . . 1945^-June 30. . serves with Cash Federal in Revault serve Banks 8,694 13,992 12,396 13,072 12,834 12,812 14,260 14,806 950 1,234 1,358 1,305 1,445 1,464 1,622 1,474 M e m b e r banks, 1 total: 746 1938—Dec. 3 1 . . 8,694 991 1940—Dec. 3 1 . . 13,992 1941—Dec. 3 1 . . 12,396 1,087 1942—Dec. 3 1 . . 13,072 1,019 1943—Dec. 3 1 . . 12,835 1,132 1944—June 30. . 12,813 1,143 Dec. 30. . 14,261 1,271 1945—June 30. . 14,807 1,150 Dec. 3 1 P . New York City:2 1938—Dec. 3 1 . . 1940—Dec. 3 1 . . 1941—Dec. 3 1 . . 1942—Dec. 3 1 . . 1943—Dec. 3 1 . . 1944—June 30. . Dec. 30. . 1945—June 30. . Dec. 31P. DeBalances mand dewith posits doad- 4 mestic banks 3 justed 503 6,595 702 9,677 673 9,823 813 10,234 893 9,743 940 10,030 948 11,063 11,217 1,119 1,762 8,167 9,950 18,757 19,754 23,478 4,240 6,185 6,246 6,147 5,450 5,799 6,354 6,486 22,293 30,429 33,754 42,570 52,642 51,829 57,308 59,133 501 6,510 700 9,581 671 9,714 811 10,101 891 9,603 937 9,904 945 10,881 11,064 1,106 1,709 7,923 9,444 17,634 18,509 21,967 109 122 141 82 61 60 76 64 7,168 11,062 10,761 11,899 13,899 13,254 14,042 14,643 884 902 821 811 899 929 35 42 43 39 38 41 43 33 235 319 298 164 158 179 177 180 1,688 1,941 2,215 2,557 3,050 3,070 3 ,041 3,152 Reserve city banks: 1938—Dec. 3 1 . . 1940—Dec. 3 1 . . 1941—Dec. 3 1 . . 1942—Dec. 3 1 . . 1943—Dec. 3 1 . . 1944—June 30. . Dec. 30. . 1945—June 30. . Dec. 3 1 P . 2,354 4,027 4,060 4,940 5,116 5,109 5,687 5,882 321 396 425 365 391 399 441 396 1,940 2,741 2,590 2,202 1,758 1 922 2,005 2,029 7,214 9,581 11,117 14,849 18,654 18 405 20,267 20,682 Country banks: 1938—Dec. 3 1 . . 1940—Dec. 3 1 . . 1941—Dec. 3 1 . . 1942—Dec. 31. . 1943—Dec. 3 1 . . 1944—June 30. . Dec. 30. . 1945—June 30. . Dec. 3l*\ 1,353 1,857 2,210 2,842 3,303 3,438 3,909 4,117 322 452 526 542 611 618 684 632 1,956 3,002 3,216 3,699 3,474 3,638 4,097 4,213 204 243 271 287 313 322 352 324 1,423 2,017 2,325 2,934 2,996 2,978 3,434 3,473 1,051 1,021 ForDomestic3 eign 25,198 33,820 37,845 48,221 59,921 59,197 65,960 68,048 68 102 93 72 92 85 102 89 31 31 31.. 31.. 31.. 30. . 30. . 30. . Certified U. S. States and and Gov- political offiern- subdi- cers' ment visions checks, etc. 5,663 8,202 8,570 9,080 8,445 8,776 9,787 9,959 4,104 7,057 5,105 4,388 3,596 3,455 3,766 3,879 Chicago:2 1938—D ec . 1940—D ec . 1941—Dec. 1942—Dec. 1943—Dec. I944—j u n e Dec. 1945—June Dec. Interbank deposits 2,687 4 032 3,595 3,209 2,867 3,105 3,179 3,271 437 641 607 733 810 852 851 989 658 997 1,090 1,132 1,174 9 8 8 12 14 15 16 19 838 666 790 616 139 48 866 4,186 3,395 6,150 6,722 7,618 2,942 3,298 3,677 3,996 4,352 4,402 4,518 4,698 1,077 1,219 1,669 1,550 1,354 1,240 2,386 2,724 3,066 3,318 3,602 3,638 3,744 3,877 1,009 1,142 1,573 1,460 1,251 1,138 280 370 319 263 252 213 199 229 23,475 32,398 36,544 47,122 58,338 57,351 64,133 65,494 157 160 158 97 68 68 64 66 86 69 59 61 124 108 109 105 575 522 492 397 395 407 423 482 21,119 29,576 33,061 42,139 51,820 50,756 56,270 57,417 62,912 142 141 140 87 62 63 58 61 61 56 50 56 120 104 105 . 102 195 7,273 471 . 11,357 450 11,282 448 12,501 710 14,373 722 13,740 361 14,448 6 5 6 3 4 11 11 16 547 913 3,41 14,789 15,712 1,105 1,400 1,499 29 27 34 38 44 41 33 29 1,597 1,905 2,152 2,588 3 097 3,040 3,100 3,124 3 160 2,719 3,919 4,302 4,831 4,770 4 757 5,421 5,510 424 53 327 49 54 491 63 1,982 63 3,373 65 6,453 70 6,157 90 7,655 796 995 1,144 1,319 1,448 1,464 1,509 1,516 170 228 286 385 475 384 488 422 7,034 9,468 11,127 15,061 18,790 18,367 20,371 20,559 22,281 113 107 104 63 41 37 33 31 6,224 446 633 7,845 790 9,661 957 13,265 994 17,039 951 17,099 19,958 1,149 20,656 1,108 143 2 151 2 225 2 4 1,090 5 1,962 5 3,926 8 4,230 8 5,195 1,128 1,184 1,370 1,558 1,727 1,743 1,868 1,939 154 187 239 272 344 314 369 346 5,215 6,846 8,500 11,989 15,561 15,609 18,350 18,945 21,759 48 50 53 243 506 555 574 611 678 750 764 775 820 48 58 68 76 96 90 103 101 2 356 2,822 3,483 4,983 6,518 6 595 7,863 8,078 972 83 90 127 665 713 2,904 3,391 4,092 5,651 7,279 7,368 8,652 8,915 85 95 108 133 141 126 182 153 2 3 2 2 2 3 3 13 1,124 1,245 1,511 14,009 14,998 15,146 15,697 18,561 20,530 23,347 26,346 18 11 10 10 46 84 122 65 6,434 6,673 6,841 7,055 7,453 7,709 7,989 8,340 10,846 11,687 11,878 12,366 14,822 16,448 347 18,807 392 21,254 6 3 5 39 75 111 52 5,424 5,698 5.886 6'l01 6,475 6,696 6,968 7,276 29 64 96 40 1,593 ,615 I ,'648 1,727 L,862 ,907 .966 2^023 5 7 7 8 36 51 29 23 26 17 17 19 5 181 174 233 178 174 218 167 193 1,027 1,105 IndiCapividuals, Bortal partner- row- acships, ings counts and corporations 462 435 418 332 327 333 595 971 31P. Insured nonmember commercial b a n k s : 1938—Dec 31 1940—Dec. 3 1 . . 1941—Dec. 31 1942—Dec 31 I943—Dec. 31 1944—June 30 Dec. 30'. '. 1945—June 30 . U.S. IndiGov- States viduals ernand partner- Inter- ment politships, bank and ical and corPostal subdiporaSav- visions tions ings 9 8 652 768 778 711 816 861 977 1,082 4 1 1 1 452 496 476 453 505 543 619 663 257 270 288 304 326 343 354 362 17 19 20 22 56 45 40 39 269 226 243 169 151 158 154 166 4,233 4,505 4,542 4,805 5,902 6,567 7,561 8,529 1,777 1,904 1,967 2 2,028 2,135 2,207 2,327 3 2,450 23 29 30 20 17 15 14 14 44 33 31 32 56 52 57 54 147 150 146 140 149 157 175 207 5,509 5,917 6,082 6,397 7,599 8,477 9,650 10,981 6 3 4 3 10 11 16 9 1,798 1,909 1,982 2,042 2,153 2,239 2,321 2,440 15 18 18 10 6 5 6 5 25 13 8 5 4 4 4 4 113 87 74 65 68 74 76 90 3,163 3,311 3,276 3,339 3,750 4,094 4,553 5,105 11 8 6 5 6 9 10 13 1,010 2 2 i 975 956 955 979 1,015 1,022 1,065 p Preliminary. 3 Beginning June 30, 1942, excludes reciprocal bank balances, which on Dec. 31, 1942, aggregated 513 million dollars at all member banks and 525 million at all insured commercial banks. * Demand deposits other than interbank and U. S. Government less cash items reported as in process of collection. For other footnotes see page 306. Back figures.—See Banking and Monetary Statistics. Table 18-45. pp. 72-103 and 108-113. MARCH 1946 307 WEEKLY REPORTING MEMBER BANKS—NEW YORK CITY AND OUTSIDE LOANS AND INVESTMENTS [Monthly data are averages of Wednesday figures. In millions of dollars] Loans Date or month Total loans and invest- Total ments Commercial, industrial, and agricultural For purchasing or carrying securities To brokers and dealers To others U.S. U. S. Govt. Other Govt. Other seob- curi- ob- cunligaligations ties tions ties Total—101 Cities 1945—January 59,590 12,356 6,405 1,196 1945—September.. October November.. December.. 61,765 60,988 61,646 67,752 12,761 6,096 12,438 6,267 13,034 6,659 15,746 7,148 Investments 1,396 1,263 1,382 1,881 U. S. Government obligations Real- Loans estate to Other Total loans banks loans 726 1,236 357 1,053 1,306 47,234 44,345 2,813 10,008 9,238 21,673 850 858 843 854 398 402 401 434 1,473 500 568 1,684 1,390 1,004 1,044 2,560 1,060 1,062 1,068 1,086 1946—January 68,066 15,367 7,272 1,675 774 2,345 432 1,102 1945—Nov. 28 62,381 13,632 6,778 1,674 807 1,222 819 832 901 865 2,458 2,697 2,589 2,495 427 437 442 432 1,079 1,081 1,091 1,091 1,095 1,098 1,101 1,106 1,107 49,004 48,550 48,612 52,006 45,655 45,264 45,373 48,710 1,259 1,284 1,070 1,958 1,596 48,749 45,501 15,253 15,951 15,952 15,829 6,964 7,128 7,241 7,259 67,948 67,838 68,220 68,112 68,211 15,890 15,310 15,224 15,221 15,190 1,910 1,636 1,586 7,275 1,636 7,300 1,608 881 2,531 763 2,418 765 2,303 732 2,252 729 2,225 427 420 421 429 68,223 15,135 67,943 15,074 68,182 15,181 7,342 1,535 7,361 1,524 7,386 1,558 715 2,184 706 2,153 701 2,128 429 1,110 431 1,118 465 1,125 r New York City 1945—January 21,500 5,140 2,454 942 547 602 144 60 320 16,360 15,405 843 3,346 3,340 7,713 1945—September.. October November.. December. .. 21,591 21,281 21,342 23,875 5,397 5,173 5,415 6,837 2,295 2,415 2,597 2,792 ,135 ,021 ,134 ,529 628 623 628 632 597 377 325 183 185 179 194 83 68 54 72 409 417 434 462 280 395 209 580 1946—January. 23,754 6,412 2,837 ,317 570 185 45 1945—Nov. 28 21,677 5,759 2,647 ,403 607 191 49 1946—Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 1,091 918 129 660 51,887 98 ,682 52,083 96 ,699 52,150 71 1,699 51,904 83 ,714 ,684 ,708 ,708 52,058 52,528 52,996 52,891 1,703 53,021 48,654 48,817 48,827 48,541 2,164 2,031 1,962 1,674 11,193 9,052 26 ,233 11,187 9,116 26 ,471 11,218 9,078 26,555 11,186 9,073 26 "',598 48,674 49,133 49,629 49.531 49,656 1,761 1,958 2,030 ,756 1,742 12,130 12,371 12,593 12,716 12,778 8,036 26 ,737 7,968 26,825 7, ,003 7,961 27,089 7 ,944 27,184 106 1,714 53,088 49,716 1,703 12,868 7 ,931 27,202 58 ~" 52,869 49,485 ,526 12,788 7,921 27,242 80 1,738 53,001 49,586 1,514 12,894 7 ,945 27,226 16,194 16,108 15,927 17,038 2,811 2,779 2,750 3,155 3,019 2 ,986 2 ,939 2,916 1,070 ,055 ,060 ,077 ,128 101 64 66 54 455 455 465 474 17,206 16,917 17,050 16,979 16,151 15,857 15,973 15,851 743 525 610 441 3, 243 3,069 3,132 3, 1946—Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 23,904 23,641 23,770 23,698 23,758 6,798 6,328 6,283 6,335 6,315 2,821 2,815 2,853 2,842 2,853 ,513 ,251 ,240 ,303 ,279 631 1,048 565 960 567 877 547 859 541 846 176 173 178 183 213 67 30 25 60 42 478 471 479 478 479 17,106 17,313 17,487 17,363 17,443 15,987 16,200 16,400 16,275 16,360 523 626 587 470 560 3,384 2 ,665 ,673 3, 3,,553 2 ,723 3,,525 2 ,720 3,,527 2 ,715 533 523 522 834 819 819 186 186 216 91 43 66 477 17,532 16,446 481 17,381 16,299 486 17,318 16,227 634 213 3,951 254 179 3,801 3,852 4,062 4,356 261 242 248 352 793 222 235 627 215 719 222 1,469 1946—January 44,312 8,955 4,435 358 204 1,427 1945—Nov. 2 8 . . . . 40,704 7,873 4,131 271 200 866 Dec. 5 . . . . Dec. 1 2 . . . . Dec. 1 9 . . . . Dec. 2 6 . . . . 43,323 44,120 44,150 43,916 8,642 8,954 9,050 8,991 4,263 4,331 4,400 4,430 348 352 352 355 205 1,351 210 1,544 244 ,517 230 ,462 U946—Jan. 2 . . . . Jan. 9 . . . . Jan. 1 6 . . . . Jan. 2 3 . . . . Jan. 3 0 . . . . 44,044 44,197 44,450 44,414 44,453 9,092 8,982 8,941 8,886 8,875 4,428 4,427 4,443 4,433 4,447 397 385 346 333 329 250 198 198 185 188 Feb. 6 . . . . 44,408 8,853 4,456 44,333 8,845 4,463 Feb. 13 Feb. 2 0 . . . . 44,520 8,837 4,466 323 309 308 182 1,350 183 1,334 179 1,309 ,483 ,458 ,426 1,393 1,379 982 215 993 217 995 222 1,004 240 1,021 247 1,039 225 1,009 229 ,013 239 ,017 247 ,026 246 ,026 251 247 243 246 249 ,031 ,035 ,037 ,043 ,045 243 1,047 245 1,054 249 1,060 955 2 ,934 9,229 198 198 195 186 7,364 7,265 7,619 8,909 163 1,098 356 1,107 1,153 1,072 1,033 7,216 12 3,372 3»384 3,415 164 2,736 2,864 9,082 614 622 657 635 40,174 39,707 40,304 43,877 9 3,367 9 3,360 8 3,365 553 3,492 2,699 9,498 ,369 ,644 ,541 ,562 38,090 10 3,384 11 3,395 1 442 15,918 14,848 2,701 2,797 2,841 2,829 1945—September.. October.. . . November.. December.. 10 3,363 477 17,342 16,244 6,611 6,997 6,902 6,838 Outside "New York City 1945—January 3,233 3,266 3,323 1,229 1,141 1,072 1,080 23,817 23,914 23,952 23,817 23,815 6,282 2,886 1,212 53,610 6,229 2,898 1,215 2, !3\662 6,344 2,920 1,250 3,374 3,248 8,853 8,805 8,955 9,305 14,965 14,967 14,855 15,958 Dec. 5 Dec. 12 Dec. 19 Dec. 26 Feb. 6 Feb. 13 Feb. 20 3,349 3,286 3,239 3,296 975 9,832 8,953 25,729 67,140 68,034 68,102 67,733 Dec. 5 Dec. 12 Dec. 19 Dec. 26 613 2,889 10,258 9,301 24,826 9,853 9,159 24,959 9,798 9,049 25,444 " 11,196 9,080 26 ",464 63 1,704 52,699 49,325 1,849 12,518 7,981 26,968 416 1,073 1,717 1,996 1,893 1,917 Total CerOther tificates Guar- secuof in- Notes Bonds an- rities Bills debtteed edness 2,942 9,319 2,904 9,325 ,886 9,346 9,413 9,429 9,535 9,558 9,556 ,119 ,113 ,087 ,088 1,083 540 3,608 2,728 9,568 473 3, 528 2 ,735 9.562 375 3,592 2,756 9,503 1,087 1,082 1.091 986 30,874 28,940 1,970 6,662 5,898 13,960 450 1,934 1,064 32,810 32,442 1,134 32,685 1,222 34,968 30,690 30,297 30,518 32,752 1,227 35,357 33,081 1,154 32,831 30,653 1,205 1,227 1,234 1,225 34,681 35,166 35,100 34,925 32,503 32,960 32,854 32,690 979 7,447 6,282 15,973 889 7,0746,173 16,154 861 7,048 6,110 16J489 8,0416,164 17,159 1,378 9,026 5,282 17,470 1,296 7,096 6,089 16,647 811 1,421 7,9506,118 17,004 1,506 8,1186,174 17,152 1,352 8,086 6,174 17,230 1,233 8,0106,187 17,252 1,238 1,332 1,443 1,286 1,182 8, 746 8,901 9,,040 9,191 9,251 5,371 5,295 5,271 5,241 5,229 9 2,120 2,145 10'2,167 10 2,216 2,276 10 2,178 10 2,178 2,206 2,246 8 2,235 17,324 17,396 17,468 17,531 17,628 2,265 9 2,282 2,280 2,272 6 2,282 1.237 35,555 33,270 1,163 9,260 5,203 17,634 1,242 35,488 33,186 1,053 9,260 5,186 17,680 1,252 35,683 33,359 1,139 9,302 5,189 17,723 10 2,285 7 2,302 6 2,324 1.236 34,952 32,687 1,213 35,215 32,933 1.229 35,509 33,229 1.230 35,528 33,256 1,22435,578 33,296 Back figures.—See Banking and Monetary Statistics, pp. 127-227. .308 FEDERAL RESERVE BULLETIN WEEKLY REPORTING MEMBER BANKS—NEW YORK CITY AND OUTSIDE—Continued RESERVES AND LIABILITIES [Monthly data are averages of, Wednesday figures. In millions of dollars] , Time deposits, except interbank Demand deposits, except interbank Date or month ReDeBalserves with lash ances mand dewith Fedin posits eral vault domestic ad- 1 Rebanks justed serve Banks Total 101 Cities 1945—January.... h 1945—September. . October November... December... 10,129 10,307 10,491 10,223 570 569 603 643 1946—January 10,218 592 1945—Nov. 28 10,741 627 Dec. 5 Dec. 12 Dec. 19 Dec. 26 10,485 10,037 10,237 10,133 1946—Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Individuals, States Certified part- a n d and u. s. ner- political offiGovships, subcers' ernand cor- divi- checks ment etc. pora- sions tions Domestic banks States U. S. and Governpolit- ment Forical eign and sub- Postal Debanks divi- Sav- mand Time sions ings 585 2,260 35,506 35,842 1,777 987 12,941 7,643 113 46 9,419 904 1,009 10,074 8,968 1,135 8 571 9,087 1,186 8|218 9,186 1,359 16 242 9,200 111 108 106 100 9,741 9,921 10,419 10,795 1,085 1,105 1,116 1,145 598 651 654 668 1,882 1,983 2,266 39,751 40,011 2,112 37,884 1,957 2,507 37,591 37,888 1,997 2,431 37,648 40,230 2,181 2., 273 40,247 518 37,452 37,726 1,984 570 37,381 37,990 1,893 525 37,974 38,160 1,969 2,416 37,556 37,662 1,981 10,217 10,175 10,375 10,236 10,088 610 613 583 568 585 2,595 37,066 37,674 2,448 37,384 37,491 2,526 37,728 38,257 2,352 38,037 38,084 2, 238 38 ,026 37,933 10,133 10,110 10,004 545 2,231 37,821 37,650 2,138 604 2,309 37 ,542 38,170 2,140 573 2,275 37,687 37,727 2,141 9,340 New York City 1945—January.... 3,345 3,671 3,767 3,809 3,636 86 87 98 106 1946—January 3,654 1945—Nov. 28 2,175 38,748 38,894 ,331 39,458 2,: 91 1945—September. . October November... December... 1,949 1,934 1,956 2,024 2,123 10,790 1,189 200 4,995 69,711 43 10,432 1,126 663 4,949 12,715 1,131 1,132 1,154 1,162 354 258 328 451 4,967 4,955 4,958 4,954 22,979 16,934 18,443 12,801 232 161 162 187 259 4,993 4,996 4,995 4.997 4,995 18,273 16,258 16,578 15,664 14,929 1,492 1,274 1,418 1,251 15,958 16,761 16,149 16 100 9,188 9,190 9,195 9 ,228 102 102 97 99 10,871 10,812 10,833 10,666 1,631 1,151 1,220 1,195 1,073 16,660 9 .304 ,360 16 16;165 9,376 9,402 16,032 16 ,227 9 ,416 99 101 101 '105 106 11,061 10,986 11,213 10,562 10,131 1,273 16 291 9 ,442 1,117 16,_348 9 ,464 1,196 16,387 9,496 115 117 120 44 10,212 590 5,543 618 724 726 862 91 13,534 13,934 214 739 3,924 98 14,956 15,278 280 910 Dec. 5 Dec. 12 Dec. 19 Dec. 26 3,693 3,557 3,634 3,659 96 107 109 112 13,469 13,425 13,677 13,625 13,970 13,928 14,108 13,999 191 189 183 213 1946—Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 3,690 3,612 3,647 3,690 3,631 95 97 87 86 92 13,387 13,420 13,403 13,734 13,728 13,965 13,739 13,897 14,036 14,033 3,64 ; 3,63: 3,630 85 96 95 13,728 13,982 13,461 13,928 13,567 13,898 5,995 494 2,234 22,738 22,623 6,458 6., 540 6,682 6,587 484 482 505 537 2,151 2,186 2,241 2,478 24,550 24,770 25,040 24,043 24,353 24,520 24 ,884 23,883 57,165 63,464 63,039 78,116 8,547 9,194 172 1945—September. . October November.. December... 4,862 4,905 4,942 4,959 102 168 219 261 194 Outside New York City 1945—January 141 4,617 65,627 348 312 533 348 110 14,541 14,938 15,127 14,001 14,198 14,561 14,711 13,548 Bor- Cap- Bank row- ital debacings counts its* 1,254 16,237 9,372 1,376 12,768 13,219 Feb. 6 Feb. 13 Feb. 2 0 . . . . Individuals, partnerships, and corporations Interbank deposits 899 10,180 10,065 1,224 1,229 1,219 290 5,025 15,761 350 5,029 13,140 297 5,036 16,882 2,985 817 69 1,792 30,826 2,941 3,031 3,138 3,335 971 986 992 122 869 26,534 100 884 29,990 227 28,423 240 1,900 37,046 963 808 887 791 4,005 1,119 3,370 1,085 3,077 ,100 6,361 1,090 6,263 1,118 3,096 1,101 6,469 1,097 6,576 1,094 6,215 *,081 6,183 1,089 3,374 3,312 3,381 3,272 203 191 188 221 268 998 661 726 721 588 6,478 6,226 6,232 6.154 6,224 1.104 1,121 1,119 1,121 1,123 266 281 247 823 6,234 1,125 647 6,250 1,125 748 6,257 1,138 10 3,183 10 3,136 1,605 397 7,398 6,744 1,714 1,764 1,851 1,763 391 411 460 497 6,069 5,201 5,141 9,881 7,849 8,002 8,086 8,110 3,356 3,175 1,016 1,059 119 1,922 34,165 359 1,896 5,888 1,001 1,003 1,028 1,031 191 165 261 344 1,903 1,901 1,901 1,893 10,614 7,915 9,147 5,742 3,433 3,374 3,555 3.261 3,154 1,054 1,068 1,046 1,050 1,076 166 90 98 113 130 1,922 1,924 1,925 1,925 1,919 8,957 7,942 8,350 7.758 7,080 3,156 1,096 1,099 1,090 154 1,936 159 1,937 130 1,940 7,462 6,053 8,203 1,002 6,434 87 72 2,825 34,801 6,800 6,890 7,281 7,460 114 119 124 129 226 2,993 30,631 ' 212 33,474 306 048 34,616 108 059 41,070 515 9,974 8,254 7,434 130 81 3,073 35 ,546 5,451 8,093 7,257 124 304 3,053 6,827 9,489 8,091 9,9348,114 9,917 8,139 • - - 8,096 7,497 7,500 7,452 7,394 130 129 126 131 163 93 67 107 3,064 12,365 3,054 9.019 3,057 9,296 3,061. 7,059 8,200 8,239 8,257 r 8,281 10,003 8,293 7,628 7,612 7,658 7,301 6,977 129 130 131 131 128 66 71 64 74 129 3,071 3,072 3,070 3,072 3,076 450 10,057 8,317 470 10,098 8,339 448 10,130 8,358 7,024 7,029 6,929 128 130 129 136 3,089 8,299 191 3,092 7,087 167 3,096 8,679 1946—January 6,564 501 2,403 24,114 23 ,954 1,783 1945—Nov. 28 6,817 529 2,247 25,291 24,952 Dec. 5 Dec. 12 Dec. 19 Dec. 26 6,792 6,480 6,603 6,474 502 544 545 556 2,480 2,545 2,500 2,390 23,983 23,956 24,297 23,931 23.756 24,062 24,052 23,663 1,793 1,704 1,786 1,768 529 466 531 460 1946—Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 6,527 6,56. 6,728 6,546 6,457 515 516 496 482 493 2,565 23,679 2,423 23,964 2,500 24, 325 2,319 24,303 2,214 24 ,298 23,709 23,752 24,360 24,048 23,900 1,746 1,743 1,768 1,803 1,855 490 494 474 485 Feb. 6 Feb. 13 Feb. 20 6,486 6,478 6,374 460 2,205 24,093 23 ,668 508 2,282 24,081 24,242 478 2,250 24,120 23 ,829 1,872 1,859 1,894 1,901 •- 10,182 9,874 9,933 9,878 9,316 8,316 8,228 7,906 7,849 * Revised. Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. Demand Monthly and weekly totals of debits to demand deposit accounts except interbank and U. S, Government accounts. ~>. 1 2 MARCH 1946 309 WEEKLY REPORTING MEMBER BANKS—BY FEDERAL RESERVE DISTRICTS LOANS AND INVESTMENTS [In millions of dollarsl Loans Federal Reserve district and date Boston Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 New York* Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Philadelphia Jan. 23 . Jan. 30 Feb. 6 Feb. 13 Feb. 20 Cleveland Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb 20 Richmond Jan. 23 Jan. 30 Feb 6 Feb. 13 Feb. 20 Atlanta To others U.S. U. S. Govt. Other Govt Other seseob- curi- ob- curiliga- ties liga- ties tions tions Real- Loans estate to Other Total loans banks loans 472 481 484 485 485 46 52 35 42 42 23 24 22 22 15 51 51 47 47 46 18 18 18 19 19 70 70 70 70 71 2 2 2 4 4 123 120 122 124 125 26,003 26,077 26,127 25,925 25,990 6,719 6,694 6,660 6,610 6,728 2,990 3,003 3,036 3,048 3,068 1,319 1,290 1,223 1,230 1,268 552 546 538 527 527 900 886 873 857 857 206 236 208 208 238 148 147 148 150 151 60 42 91 43 66 544 544 543 547 553 19,284 19,383 19,467 19,315 19,262 2,836 2 849 2,853 2,822 2,832 549 554 558 552 J5.53 244 251 256 255 254 11 9 8 8 8 33 33 33 30 30 74 73 70 70 70 11 11 10 10 10 33 32 33 34 34 1 2 1 1 1 142 143 147 144 146 5,375 5,406 5,396 5,398 5,400 1,111 1,108 1,106 L,103 ins 435 433 432 438 438 71 71 72 63 61 21 23 22 25 30 260 261 258 252 251 14 14 14 14 14 157 157 158 158 159 2 232 2,237 2,243 2 247 2,252 396 397 401 400 406 173 174 174 175 176 5 5 10 7 9 6 6 6 5 5 78 78 78 81 80 10 10 10 10 10 50 50 50 49 51 2,311 2,299 2,309 2,315 2,330 516 511 507 245 246 245 245 242 3 2 2 2 2 10 10 9 9 8 132 129 123 120 120 8 8 8 9 8 24 24 24 25 25 42 285 82 165 504 498 10,006 J R56 1 002 10,004 ,842 995 9,951 ,845 991 9 908 991 831 S1(S 9 971 989 Jan. 23 23 30 6... 13 20 To brokers and dealers L . S Government ob igations 805 818 800 813 807 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Chicago* Jan. Jan Feb. Feb. Feb. For purchasing or carrying securities . . . 3,419 3,443 3,443 3,424 3,424 Jan. 23 Jan. 30 Feb 6 Feb. 13 Feb 20 St. Louis Total loans and invest- Total ments Commercial, industrial, and agricultural Investments 2,227 2 218 . . . . 2,218 2,217 2,221 .... Minneapolis Jan. 23 Jan 30 Feb 6 Feb. 13 .... Feb 20 Kansas City Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Dallas Jan. 23 Jan 30 Feb 6 Feb.13 Feb. 20. San Francisco Jan 23 Jan. 30 . . Feb: 6 , Feb 13 Feb. 20 City of Chicago * Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 608 605 605 607 613 344 343 344 1,396 1,398 1 409 1,398 1,395 260 344 348 125 257 258 255 250 125 126 125 122 2,503 2,486 2,488 2,501 2,511 434 252 126 589 583 582 578 579 389 386 389 384 387 18,099 18,204 18,284 18,137 18,073 52S 615 ,591 511 419 3,923 3,927 4,011 3,936 3,981 2,958 2,967 2,985 2,995 3,022 2,287 2 295 2,295 2,270 2,279 2,082 2 091 2,088 2,063 2,072 141 145 141 129 126 404 405 411 404 404 292 292 284 279 275 J ?AS 1,249 t,252 1,251 L.267 205 204 207 207 207 148 149 150 153 155 4,264 4,298 4,290 4,295 4,292 3,988 4,018 4.008 4,010 4,003 1,049 1,066 1,077 1,080 1,078 648 644 645 650 644 2,242 2,241 2,242 2,244 2,233 276 280 282 285 289 2 2 2 6 2 68 72 71 71 73 1,836 1,840 1,842 1,847 1,846 1.764 L767 1,769 L 773 1,772 49 67 44 36 48 71 69 71 74 .57 211 1.065 211 ,066 209 ,061 208 .070 208 .072 72 73 73 74 74 3 3 3 2 1 91 89 93 92 92 1,795 1,788 1,802 1,811 1,832 L,644 1,638 L.652 1,661 1,682 57 57 67 67 71 1 1 1 1 2 151 150 150 150 150 7,578 7,589 7,536 7,495 7,570 351 3,562 3,567 3,570 3,571 3,556 2 572 337 244 241 238 239 243 1,154 1,158 1,146 1,132 1,144 834 836 840 849 844 8,150 152 8,162 153 8,106 152 8,077 153 8,155 508 503 506 505 522 2,509 2,534 2,530 2,536 2,533 40 27 31 302 304 301 325 326 324 815 820 817 2 5 82 80 81 165 166 166 116 39 272 80 167 5 5 4 5 5 5 68 68 68 15 14 13 70 70 70 71 71 3 4 26 1 27 28 28 28 1 1 1 1 40 1 6 6 69 65 2 3 47 13 15 5 3 3 3 3 45 44 43 41 5 4 4 4 4 55 1 1 1 1 2,614 2,542 2,625 2,552 2,643 2,567 2,611 2,534 2,617 2,537 154 281 279 277 4 5 i ±fr± 100 105 113 82 86 42 41 41 125 135 123 Total CerOther tificates Guar- secuBills of in- Notes Bonds an- rities debtteed edness 2 2 4 1.619 L ,613 L,613 97 1,610 99 L.608 99 98 97 1,484 J .477 L,477 L,474 ,474 51 L, 136 L,081 50 L, 141 .083 151 1,095 51 50 1,143 1,086 50 1,145 1,088 330 290 256 417 421 428 421 435 1 478 1,483 1,490 485 10,691 10,693 10,695 10,693 10,650 72 73 76 77 80 2 2 2 2 1 1,185 1,179 1,183 1,178 1,189 573 570 582 585 4 136 136 136 31 23 31 310 313 308 306 237 168 825 832 645 15 22 13 24 238 243 244 243 159 159 159 153 671 671 670 668 58 56 57 57 135 134 55 9 9 9 9 41 41 41 41 1 1 1 1 72 72 72 72 2,069 2,049 2,054 2,070 2,082 1,923 1,902 1,907 1,923 1,933 64 71 86 93 566 570 569 574 386 379 380 378 876 2 2 2 2 54 53 52 51 397 886 887 888 888 146 254 252 250 249 4 4 4 4 568 437 434 431 429 666 666 387 388 1 1 4 4 31 31 2 1 212 214 646 650 29 1 1 62 62 135 1,458 1,446 1,436 1,444 1,463 528 526 4 78 1,520 78 1,508 77 1,498 78 1,506 78 1,526 72 56 390 1 139 136 664 59 510 213 654 139 6,317 6,319 138 6,327 143 6,314' 142 6,357 5,888 5,889 5,897 5,885 5,919 237 1,682 192 1,705 203 1,699 180 1,694 156 1,716 4,432 4,415 4,371 4,341 4,425 280 243 214 201 295 2,186 2 174 2 162 2,170 2,188 7 618 7 620 7,624 7 618 7,668 1 301 1 301 1,297 1 301 1,311 6,087 6,056 6,012 5,979 6,053 1,274 1,288 1,278 1,263 1,250 664 662 2 9 71 h 6 131 124 606 1 1 45 24 27 27 26 31 29 163 27 292 607 45 29 28 293 28 28 27 293 294 295 136 28 28 28 163 42 41 43 753 745 742 742 739 121 119 130 118 112 35 35 34 34 32 184 182 181 179 177 73 73 72 72 72 37 37 37 37 37 85 83 82 81 81 389 390 612 616 625 156 154 151 32 32 82 61 74 213 516 1,592 1,606 1,599 1,596 1,592 511 218 62 659 655 963 3,004 960 3,027 960 3,030 974 3,032 967 3,076 659 662 657 646 638 147 147 147 149 62 63 2 5 5 5 4 429 430 430 429 438 l!904 1,901 1,898 1,900 367 367 363 375 378 • Separate figures for New York City are shown in the immediately preceding table and for the City of Chicago in this table. for the New York and Chicago Districts, as shown in this table, include New York City and Chicago, respectively. The figures 310 4,799 4,782 4,734 4,716 4,803 FEDERAL RESERVE BULLETIN WEEKLY REPORTING MEMBER BANKS—BY FEDERAL RESERVE DISTRICTS—Continued RESERVES AND LIABILITIES fin millions of dollars] 1 Federal Reserve district and date Boston (6 Cities) Jan 23 Jan. 30 Feb 6 Feb. 13 Feb. 20 New York (8 cities)* Jan. 23 Jan. 30 Feb 6 Feb. 13 Feb. 20 Philadelphia(4 cities) Jan. 23 Jan 30 Feb. 6 Feb. 13 Feb. 20 Cleveland (10 cities) Jan. 23 Jan 30 Feb. 6 Feb 13 Feb 20 Richmond (12 cities) Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Atlanta (8 cities) Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Chicago (12 cities)* Jan. 23 Jan. 30 Feb. 6 Feb.13-. Feb. 20 St. Louis (5 cities) Jan. 23 Jan. 30 Feb. 6 Feb 13 Feb. 20 . Minneapolis (8 cities) Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb 20 Kansas City(12 cities) Jan. 23 Jan. 30 Feb 6 Feb 13 Feb. 20 Dallas (9 cities) Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20. San Francisco (7 cities Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 City of Chicago * Jan 23 Jan 30 Feb 6 Feb 13 Feb. 20 ReBalDeserves with Cash ances mand with deFederal vault do- posits mestic ad- 1 Rebanks usted serve Banks 472 449 451 456 457 57 58 55 58 56 125 114 109 115 113 2,133 2,134 2,115 2,117 2,112 3,948 3,871 3 892 3,890 3,896 117 123 116 129 126 114 106 113 114 116 15,087 15,086 15,079 14,818 14,944 431 430 428 423 420 29 31 29 33 32 90 83 77 81 78 1,814 1,818 1,806 1,774 1,774 773 738 757 736 729 76 76 71 78 76 211 205 208 214 211 2,984 2,957 2,951 2,921 2,931 341 39 332 38 Demand deposits except interbank Individuals, States Certiand fied part- politand nerical offiships, subcers' and divicor- sions checks, etc. porations 907 913 914 915 915 432 433 435 436 437 458 15 ,183 526 15 ,163 1S 09 3 530 15 ,070 " 562 537 15 ,022 758 633 861 675 781 6,595 6,671 6,681 6,700 6,710 1,779 1,781 1,784 1,785 1,798 23 24 26 27 29 1 ,875 1 ,883 1 ,867 1 ,872 1 ,842 45 43 45 45 50 22 24 19 23 22 719 727 729 730 733 224 224 225 226 225 2 2 2 2 2 3 ,005 ? ,981 2 ,949 3 ,on 2 ,959 139 135 139 132 135 47 55 52 56 53 1,135 1,148 1,156 1,158 1,162 1,242 1,244 1,246 1,250 1,253 25 25 32 32 34 79 31 503 346 2 91 82 86 81 29 508 347 2 36 39 37 382 380 383 393 380 30 31 28 30 29 155 147 153 162 156 1,270 1 ,206 1,275 1 ,182 1,279 1 ,192 1,295 1 ,228 1,300 1 ,??3 1,457 1,473 1 468 1,453 1,403 89 401 92 88 99 89 405 403 411 403 342 22 23 21 23 22 115 339 338 351 344 199 200 197 193 197 10 11 453 461 452 24 25 22 25 23 289 1 390 266 1,383 266 1,370 286 1 404 290 1,408 401 386 399 383 384 25 26 24 26 24 293 271 258 275 273 1,376 1,364 1,364 1,358 1,380 1,037 1,029 1,017 1,029 1,013 50 51 46 53 49 287 283 278 277 277 3,520 3,509 3,472 3,517 3,506 897 906 35 36 909 907 863 35 41 36 464 442 11 10 3,331 3,224 3 226 3,252 3,206 131 134 166 181 150 2,081 2,076 2 093 2,094 2,097 8,131 7,458 7,861 6,359 8,634 1 3 6 9 15 255 255 256 256 256 579 545 612 491 650 4 25 23 51 479 480 481 482 483 836 897 840 715 922 384 377 377 377 372 588 570 567 556 549 7 7 7 7 7 7 7 4 4 4 4 4 453 5 3 423 5 4 28 134 410 3 5 8 134 395 135 135 135 406 408 446 461 465 467 468 470 418 420 419 422 424 4 4 4 4 4 3 2 2 2 2 607 571 586 593 583 1 1 1 1 1 8 8 8 8 7 5 10 6 5 3 123 123 124 125 125 386 387 390 372 415 31 83 87 99 83 2,321 2,365 2,374 2,381 2,387 /-1844 1,850 1,855 1,854 1,858 r(> 4 4 4 4 4 1,764 1,693 1,721 1,718 1,699 5 25 9 591 592 595 595 596 1,926 2,007 2,244 1,783 2,248 16 480 342 1 1 1 1 1 1 1 1 1 1 672 133 390 455 455 450 454 1,078 1 ,131 1,066 1 ,110 1,052 1 ,100 1,075 \ ,139 1,075 1 ,1?3 64 16 14 14 16 485 488 494 495 343 345 346 347 650 656 650 677 651 76 82 83 79 76 13 12 11 10 10 369 372 374 375 374 1 377 L 162 164 160 28 28 27 493 292 498 292 501 • 293 29 27 503 505 6 6 6 6 211 211 212 213 213 5 4 4 4 2 9 7 28 41 7 2 2 2 2 15 16 3 10 2 2 2 2 2 12 19 16 15 18 87 87 87 87 87 254 246 249 202 271 891 901 13 32 20 465 434 453 23 11 147 147 148 148 148 406 518 132 133 136 137 137 406 366 384 386 448 548 548 549 549 549 1,194 1,167 1,205 1,077 1,239 347 347 1 22 23 23 23 2 657 662 664 644 359 341 347 940 c 1 1 2 294 295 1 1 2 2 909 905 650 609 592 600 592 1 497 478 465 470 460 43 42 44 46 46 1 252 1,197 1,213 1,209 1,209 21 19 80 87 90 92 88 34 29 26 25 25 481 483 485 490 492 271 271 273 274 273 14 14 14 15 14 2 1,353 1,398 .386 3,551 3,537 3,489 3,633 3,565 180 167 168 167 164 110 107 101 103 100 1,568 1,592 1,610 1,620 1,629 2,001 2,000 2,006 2,014 2,022 27 27 27 27 27 7 185 3,296 3,327 185 3,298 3,316 192 3,241 3,247 187 3,206 3,310 185 3,225 3,249 180 187 39 1,507 42 1,539 42 1,544 43 1,549 38 1,554 752 757 198 197 203 1,053 1,078 1,098 1,101 1,092 5 4 3 433 1,396 687 647 708 603 685 5 5 5 ?80 5,402 5,451 5 ,304 5,348 «i 71S 5,285 5 ,309 160 5,278 :1,365 287 288 288 288 289 11 12 11 11 11 3 3 2 2 2 5 7 17 18 13 437 428 417 16 15 14 13 17 159 168 14 16 16 16 18 1 1 1 1 1 27 27 25 25 26 7 7 7 195 200 198 197 196 1,351 ,350 L 409 ,390 317 297 299 298 291 2 2 2 512 514 515 66 65 69 71 2 2 2 2 2 349 350 351 28 28 28 669 679 678 664 666 Interbank deposits Domestic banks States U. S. Bor- Cap- Bank Govital and ernacpolit- ment For- ings counts its2 ical eign and sub- Postal Debanks Time divisions Sav- mand ings 39 42 33 42 34 351 339 339 96 95 94 94 98 Individuals, U. S. partGov- nerern- ships, ment and corporations 113 117 114 lt)6 116 2 ,109 2 ,102 2 ,089 2 ,098 2 ,094 176 1,314 1 3?1 151 1,304 1 ?99 159 1,307 1 ,303 163 1,314 1 ,324 149 1,313 1 ,31? 112 113 117 111 Time deposits, except interbank 759 756 758 7 19 19 19 10 12 2 132 133 133 134 380 409 338 406 373 1,249 374 1,353 376 1,486 376 1,149 377 1,458 r Revised. * See note on page 310. . 1 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. 3 Debits to demand deposit accounts except interbank and U. S. Government accounts. MARCH 1946 311 COMMERCIAL PAPER AND BANKERS' ACCEPTANCES fin millions of dollars] OUTSTANDING Dollar acceptances outstanding Held by End of m o n t h Commercial paper out1 • standing Based on Accepting banks Total •outstanding Others 2 Total Own bills Bills bought Imports into United States Exports from United States Dollar exchange Goods stored in or shipped between points in United States Foreign countries 1944—October November December 142 167 166 115 115 129 85 84 93 40 44 44 45 40 50 30 32 35 79 74 86 13 14 14 (3) (3) (») 21 24 25 2 4 3 1945—January February March April May June July August September October November December 162 157 147 119 103 101 107 110 111 127 156 159 130 126 128 117 104 107 117 128 135 135 145 154 98 97 96 .90 82 80 90 101 104 100 107 112 48 52 54 52 51 44 45 50 52 53 58 64 50 46 42 38 32 36 45 50 52 46 49 48 32 29 32 . 26 22 27 226 28 31 35 38 42 86 87 87 81 72 74 81 91 98 95 100 103 13 12 11 10 9 10 9 10 11 12 15 18 (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) 25 24 25 24 22 20 22 25 23 22 23 26 5 4 4 2 2 3 4 2 3 6 6 7 1946—January 174 166 126 71 55 40 109 20 (3) 29 8 1 2 As reported by dealers; includes some finance company paper sold in open market. None held by Federal Reserve Banks except on July 3 1 , 1945, when their holdings were $486,000. " Less than $500,000. Back figures.—See Banking and Monetary Statistics, Table 127, p p . 465-467; for description, see p . 427. CUSTOMERS' DEBIT BALANCES, MONEY BORROWED, AND PRINCIPAL RELATED ITEMS OF STOCK EXCHANGE FIRMS CARRYING MARGIN ACCOUNTS [Member firms of New York Stock Exchange. Ledger balances in millions of dollars] Credit balances Debit balances End of month Debit Debit Customers' balances in balances in firm debit partners' balances investment investment (net)i and trading and trading accounts accounts Customers' credit balances 1 Cash on hand and in banks Money borrowed 2 Free Other (net) Other credit balances In firm In partners' investment investment and trading and trading accounts accounts In capital accounts (net) 1936—June December... 1937—June December... 1938—June December... 1939—June December... 1940—June December... 1,267 1,395 1,489 985 774 991 834 906 653 677 67 64 55 34 27 32 25 16 12 12 164 164 161 108 88 106 73 78 58 99 219 249 214 232 215 190 178 207 223 204 985 1,048 1,217 688 495 754 570 637 376 427 276 342 266 278 258 247 230 266 267 281 86 103 92 85 89 60 70 69 62 54 24 30 25 26 22 22 21 23 22 22 14 12 13 10 11 5 6 7 5 5 420 424 397 355 298 305 280 277 269 247 1941—June December... 1942—June. . . December... 1943—June December... 1944—June December... 616 600 496 543 761 788 887 1,041 11 8 9 7 9 11 5 7 89 86 86 154 190 188 253 260 186 211 180 160 167 181 196 209 395 368 309 378 529 557 619 726 255 289 240 270 334 354 424 472 65 63 56 54 66 65 95 96 17 17 16 15 15 14 15 18 7 5 4 4 7 5 11 8 222 213 189 182 212 198 216 227 1945—February. . . March April May. June July August September. . October November. . December . . 31,'034 31,065 31,094 1,223 31,141 31,100 31,084 31,063 31,095 1,138 121 14 13 264 13 302 1946—January,... 31,168 73O 3722 3701 3742 853 3 824 3758 3762 3743 3711 795 e s 734 3 727 e 11 333 220 12 413 313 540 3553 3575 3583 549 3580 3573 3594 3632 3639 654 112 29 * Estimated. Complete reports now collected semiannually; monthlyfiguresfor three items estimated on basis of reports from a small number of large firms. 1 Excluding balances with reporting firms (1) of memberfirmsof New York Stock Exchange and other national securities exchanges and (2) of firms' own partners. 2 Includes money borrowed from banks and also from other lenders (not including member firms of national securities exchanges). 8 As reported to the New York Stock Exchange. According to these reports, the part of total customers' debit balances represented by balances secured by U. S. Government securities was (in millions of dollars): November, 181; December, 196; January, 193. NOTE.—For explanation of these figures see "Statistics on Margin Accounts" in BULLETIN for September 1936. The article describes the method by which thefiguresare derived and reported, distinguishes the table from a "statement offinancialcondition," and explains that the last column is not to be taken as representing the actual net capital of the reporting firms. Backfigures.—SeeBanking and Monetary Statistics, Table 143, pp. 501-502, for monthlyfiguresprior to 1942, and Table 144, p. 503, for data in detail at semiannual dates prior to 1942. 312 FEDERAL RESERVE BULLETIN OPEN-MARKET MONEY RATES IN NEW YORK CITY [Per cent per annum] Year, month, or week Prime commercial paper, 4- to 6months 1 U.S. Government security yields Prime Stock exbank- change 9-to 12ers' call month accept- loan to certifi- 3-year53ances, re90 1 month cates taxable new2 of in- notes days bills* als debtedness .373 1.34 1.00 .44 .75 44 375 79 1.00 1.33 .375 1.00 .44 .81 1.18 COMMERCIAL LOAN RATES AVERAGES OF RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES [Per cent per annum] Total 19 cities .69 73 .75 1945—February. . March April May July August.... September. October. . . November. December.. .75 .75 .75 .75 .75 75 .75 .75 .75 .75 .75 .44 .44 .44 .44 .44 44 .44 .44 .44 .44 .44 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 .375 .375 .375 .375 .375 .375 .375 .375 .375 .375 .375 .77 .78 .77 .80 .81 .80 .82 .84 .83 .84 .84 1946—January.. . February . . .75 .75 .44 .44 1.00 1.00 .375 .375 .79 .76 /€ Vie 1.00 1.00 1.00 1.00 1.00 .375 .375 .375 .375 .375 .77 .78 .77 .76 .75 1937 average1. . . 1938 average1. .. 1939 average.... 1940 average 1941 average.... 1942 average 1943 average.... 1944 average. . . . 1945 average.... 2.59 2.53 1.73 1.69 2.88 2.75 3.25 3.26 2.78 2.63 2.54 2.61 2.72 2.59 2.39 2.07 2.04 1.97 2.07 2.30 2.11 1.99 2.87 2.51 3.51 3.38 3.19 3.26 3.13 3.02 2.73 2.55 2.60 2.41 1.95 1.98 1.88 2.58 2.62 2.45 3.23 3.29 2.99 1942—March June September December. 1943—March. . . June..... September December. 2.48 2.62 2.70 2.63 1.85 2.07 2.28 2.09 2.48 2.56 2.66 2.63 3.20 3.34 3.25 3.26 2.76 3.00 2.48 2.65 2.36 2.70 2.05 2.10 2.76 2.98 2.71 2.76 3.24 3.38 2.73 3.17 2.63 2.63 2.69 2.39 2.10 2.23 2.18 1.93 2.75 2.55 2.82 2.61 3.12 3.18 3.14 2.65 1945—March June September December. 2.53 2.50 2.45 2.09 1.99 2.20 2.05 1.71 2.73 2.55 2.53 2.23 2.91 2.80 2.81 2.38 1.10 1.03 1.06 1.07 1.06 1.04 1.00 1 7 /i« Vie Vl6 Vie 11 Southern and Western cities 1941—June September December. 1.22 1.18 1.14 1.16 1.16 1 16 1.17 U.19 1.17 1.14 U.15 Week ending: Jan.26 Feb. 2 . . . . Feb. 9 . . . . Feb. 16 Feb.23.... 7 Other Northern and Eastern cities 1944—March.. . . June September December. 1943 average 1944 average 1945 average June New York City 1 2 Monthly figures are averages of weekly prevailing rates. The average rate on 90-day stock exchange time loans was 1.25 per cent during the entire period. 3 Rate on new issues offered within period. * From Sept. 15 to Dec. 15, 1945, included Treasury notes of Sept. 15, 1948 and Treasury bonds of Dec. 15, 1950; beginning Dec. 15, 1945, includes only Treasury bonds of Dec. 15, 1950. Back figures.—See Banking and Monetary Statistics, Tables 120-121, pp. 448-459, and the BULLETIN for May 1945, pp. 483-490. 1 Prior to March 1939 figures were reported monthly on a basis not strictly comparable with the current quarterly series. Back figures—See Banking and Monetary Statistics, Tables 124-125 pp. 463-464; for description, see pp. 426-427. BOND YIELDS 1 [Per cent per annum] U. S. Government Year, month, or week 7 to 9 years Taxable 15 years and over Partially tax exempt Corporate (Moody's) 4 Municipal (highgrade)2 Corporate (highgrade)3 By groups By ratings Total Taxable Aaa Aa A Baa Industrial Railroad Public utility Number of issues. 1-5 1-5 1-9 15 5 120 30 30 30 30 40 40 40 1943 average 1944 average.... 1945 average. . . . 1945—February . March. .. . April May June July August. . . September. October.. . November. December. 1.96 1.94 1.60 1.77 1.70 1.62 1.57 1.56 1.58 1.59 1.56 1.50 1.42 5 1.38 1.98 L.92 L.66 1.75 L.70 L.68 L.68 L.63 L.63 1.68 L.68 L.62 L.56 1.51 2.47 2.48 2.37 2.38 2.40 2.39 2.39 2.35 2.34 2.36 2.37 2.35 2.33 2.33 2.06 L.86 L.67 L.71 L.61 L.57 1.58 L.58 L.57 L.70 L.79 1.76 1.70 1.64 2.64 2.60 2.54 2.56 2.51 2.49 2.53 2.54 2.53 2.56 2.56 2.54 2.54 2.54 3.16 3.05 2.87 2.73 2.72 2.62 3.91 3.61 3.29 3.41 3.38 3.36 3.32 3.29 3.26 3.26 3.24 3.20 3.15 3.10 2.85 2.80 2.68 2.69 2.68 2.69 2.68 2.68 2.68 2.68 2.67 2.65 2.64 2.64 2.99 2.97 2.89 2.65 2.62 2.61 2.62 2.61 2.60 2.61 2.62 2.62 2.62 2.61 3.13 3.06 2.87 2.94 2.92 2.90 2.88 2.86 2.85 2.85 2.85 2.84 2.81 2.79 3.64 3.39 3.06 2.93 2.91 2.90 2.89 2.87 2.85 2.86 2.85 2.84 2.82 2.80 2.86 2.81 2.71 2.73 2.72 2.73 2.72 2.69 2.68 2.70 2.70 2.70 2.68 2.68 3.16 3.11 3.07 3.05 3.03 3.00 3.02 3.05 3.03 2.99 2.96 2.95 2.94 2.94 2.93 2.89 2.87 2.86 2.85 2.84 2.81 2.79 1946—January.. February . 1.31 1.28 2.21 2.12 1.57 1.49 2.43 2.36 2.73 2.68 2.54 2.48 2.62 2.56 2.73 2.70 3.01 2.95 2.57 2.54 2.89 2.83 2.71 2.65 Week ending: Jan.26. .. Feb. 2 . . . Feb. 9 . . . Feb. 1 6 . . . Feb.23... 1.30 1.30 1.28 1.27 1.28 2.18 2.17 2.14 2.10 2.10 1.53 1.52 1.49 1.48 1.49 2.39 2.37 2.37 2.36 2.36 2.71 2.69 2.68 2.67 2.67 2.52 2.50 2.49 2.48 2.48 2.60 2.59 2.57 2.56 2.56 2.71 2.70 2.70 2.69 2.69 3.00 2.98 2.96 2.94 2.94 2.56 2.55 2.54 2.54 2.54 2.88 2.86 2.84 2.82 2.82 2.69 2.68 2.67 2.65 2.64 (6) (6) (6) (6) (6) (6) <•) 1 2 4 Monthly and weekly data are averages of daily figures, except for municipal bonds, which are based on Wednesday figures. Standard and Poor's Corporation. 3 u . S. Treasury Department. Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa, Aa, and A groups have been 6 reduced from 10 to 3, 6, and 9 issues, respectively, and the railroad Aaa, Aa, and A groups from 10 to 7, 6, and 9 issues, respectively Beginning Dec. 15, 1945, includes Treasury bonds of June 1952-54, June 1952-55, December 1952-54, and March 1956-58. 8 No partially tax-exempt bonds due or callable in 15 years and over. Back figures.—See Banking and Monetary Statistics, Tables 128-129, pp. 468-474, and the BULLETIN for May 1945, pp. 483-490. MARCH 1946 313 SECURITY MARKETS 1 Stock prices5 Bond prices Corporate4 Year, month, or week U.S. Government2 Municipal (highgrade)3 Highgrade Medium- and lower-grade Industrial Total Volume of trading7 (in thousands of Public shares) utility Common (index, 1935-39=100) Railroad Pre-6 De- ferred Public faulted utility Total Industrial Railroad Number of issues. 1-9 20 20 15 15 402 20 28 1943 average. . . . 1944 a v e r a g e . . . . 1945 average. . . . 100.50 100.25 102.04 131.8 135.7 139.6 120.3 120.9 122.1 109.5 114.7 117.9 117.0 120.5 122.2 97.6 107.3 115.1 114.0 116.3 116.3 44.0 59.2 75.4 172.7 175.7 189.1 92 100 122 94 102 123 89 101 137 82 90 106 1,032 971 1,443 1945—February. . March.... April May June July August September. October. . . November. December. 101.81 101.56 101.68 101.74 102.38 102.46 102.22 102.02 102.38 102.60 102.68 138.7 140.7 141.6 141.3 141.5 141.6 138.8 137.0 137.7 139.0 140.1 122.7 122.9 122.3 122.1 122.3 121.7 121.6 121.9 122.0 121.9 117.6 118.1 118.2 117.9 118.1 117.9 117.2 117.1 117.7 118.3 119.0 121.9 122.9 123.1 122.1 122.2 122.2 121.7 121.4 122.0 122.5 123.1 114.3 114.8 115.0 115.0 115.5 115.2 114.4 114.4 115.3 116.6 117.5 116.5 116.5 116.5 116.5 116.7 116.4 115.5 115.6 115.7 116.0 116.2 68.1 68.9 71.9 77.5 81.4 80.4 75.6 74.5 76.6 78.9 82.1 185.5 187.7 190.9 191.2 190.9 189.6 188.1 186.7 188.0 192.2 195.3 113 112 114 118 121 118 118 126 132 137 140 115 114 117 120 122 119 119 128 135 139 142 125 124 129 135 144 140 131 138 145 154 157 97 96 98 101 106 108 107 111 114 121 120 1,664 1,195 1,273 1,357 1.S28 951 1,034 1,220 1,556 1,961 1,626 1946—January... February. . 104.59 106.03 141.6 143.4 123.8 124.5 119.7 120.0 123.9 124.4 118.9 119.6 116.3 116.1 84.9 85.4 197.9 200.5 145 143 148 146 164 160 124 124 2,183 1,776 Week ending: Jan. 26 Feb. 2 Feb. 9 . . . . Feb.16 Feb.23 105.01 142.4 105.22 142.6 105.74 143.3 106.33 143.5 106.31 143.3 124.3 124.4 124.6 124.5 124.5 120.0 120.1 120.0 120.0 120.1 124.2 124.6 124.3 124.4 124.4 119.1 119.3 119.7 119.7 119.6 116.6 116.4 116.1 115.8 116.1 85.4 87.1 87.0 85.7 84.6 198.9 199.4 199.4 200.0 201.2 145 149 149 145 141 148 151 152 147 143 166 168 169 162 154- 125 127 127 124 122 1,878 2,393 1,621 1,723 1,900 15 15 50 10 1 Monthly and weekly data are averages of daily figures, except for municipal bonds and for stocks, which are based on 2 Average of taxable bonds due or callable in 15 years and over. 3 Prices derived from average yields, as computed by Standard and Poor's Corporation, on basis of a 4 per cent 20-year 4 Prices derived from averages of median yields, as computed by Standard and Poor's Corporation. 6 Standard and Poor's Corporation. 6 Prices derived from averages of median yields on noncallable high-grade stocks on basis of a $7 annual dividend. 7 Wednesday figures. bond. Average daily volume of trading in stocks on the New York Stock Exchange. Back figures.—See figa Banking and Monetary Statistics, Tables 130, 133, 134, and 136, pp. 475, 479, 482, and 486. respectively, and the BULLETIN a M 1945 483490 for May 1945, pp. 483-490. NEW SECURITY ISSUES [In millions of dollars] For refunding For new capital Year or month 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 . . . Total (new Total and (dorefund- mestic and ing) foreign) Domestic Total 6,214 1,972 1,949 3,937 2,138 2,094 4,449 2,360 2,325 5,842 2,289 2,239 4,803 1,951 1,948 5,546 2,854 2,852 2,114 1,075 1,075 642 640 2,174 '913 '896 '4,216 '•7,956 '1,762 '1,752 State and municipal Corporate Total Bonds and Stocks notes 735 22 1,192 712 157 1,225 971 873 481 931 383 924 751 736 461 518 1,272 1,062 342 624 108 176 374 90 235 '646 '15 471 26 '1,255 839 817 807 287 601 889 506 282 '422 '602 2 9 '44 '29 '68 101 '158 1 212 107 '105 209 60 161 '19 '24 '33 50 '103 131 10 1945—January. . '641 February. '222 March.. . . '563 April '759 May »"584 June '169 July 1,229 August. . . '510 September. '879 October.. . 1,338 November. 223 December. '838 '144 '44 '92 128 '187 52 249 i*4 '142 '243 '94 '243 '144 '44 '92 126 '186 52 249 144 '142 '238 '94 241 99 6 24 19 28 43 35 37 37 29 '34 80 346 200 200 68 1946—January... Federal agencies1 Domestic ""V 2 1 34 64 35 103 28 107 352 408 67 97 135 173 118 92 '224 '654 Total (doFor-2 mestic and eign foreign) 4,242 1..799 2,089 3,553 2,852 2,693 1,039 2 1,532 17 '3,303 '10 '6,194 23 44 35 50 2 1 Total 4,123 1,680 2,061 3,465 2,852 2,689 1,039 1,442 '3,288 '6,146 '497 '497 25 178 163 5 471 471 35 '631 '631 51 ""2 397 395 55 1 '117 '117 1 981 981 178 '366 '366 43 '737 '732 '70 106 5 1,096 1,070 129 129 31 594 594 54 " '3 122 146 146 State and municipal Federal agencies^ Total Corporate Foreign- Bonds and Stocks notes 353 3,387 3,18*7 200 382 856 352 281 1,209 191 31 665 1,267 1,236 129 137 1,733 1,596 195 1,537 193 344 2,026 1,834 482 126 698 1,557 1,430 435 407 11 418 181 440 603 82 685 497 259 404 '418 '2,466 '2,178 288 912 '4,911 '4,256 '655 324 23 8 150 30 9 8 31 7 9 38 7 3 195 18 25 46 19 30 200 20 17 42 44 255 '279 '137 296 '555 367 '79 750 '338 '705 989 78 337 '246 '137 265 '530 272 '79 623 '297 '645 820 60 282 3 30 113 55 33 ' "3i" 119 119 28 88 4 90 15 48 "l5 25 95 " 2 127 41 60 169 18 55 ' 5 26 58 r Revised. 1 Includes publicly 2 offered issues of Federal credit agencies, but excludes direct obligations of U. S. Treasury. Includes issues of noncontiguous U. S. Territories and Possessions. Source.—For domestic issues, Commercial and Financial Chronicle; for foreign issues. U. S. Department of Commerce. subject to revision. Back figures.—See Banking and Monetary Statistics, Table 137, p. 487. 314 Monthly figures FEDERAL RESERVE BULLETIN NEW CORPORATE SECURITY ISSUES 1 PROPOSED USES OF PROCEEDS, ALL ISSUERS [In millions of dollars] Proposed uses of net proceeds Year or month Estimated gross proceeds2 Estimated net proceeds3 ! New money Total 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 Plant and equipment Retirement of securities Working capital Bonds and j Preferred notes I stock Total 2,332 4,572 2,310 2,155 2,164 2,677 2,667 1,062 1,170 3,202 5,800 2,266 4.431 2.239 2,110 2,115 2,615 2,623 1,043 1,147 3.142 5.691 208 858 991 681 325 569 868 474 308 657 996 111 380 574 504 170 424 661 287 141 252 581 96 47S 417 177 155 145 207 187 167 405 415 1,865 3,368 1,100 1,206 1,695 1,854 1.583 396 739 2,389 4,447 1,794 3,143 911 1,119 1,637 1,726 1,483 366 667 2,038 4,017 190 87 59 128 100 30 72 351 430 1944—July August. . . September October... November December. 210 219 463 742 380 182 206 215 453 729 373 178 63 61 29 125 33 66 37 27 18 10 17 9 26 34 11 115 17 57 131 151 415 594 338 109 107 149 375 570 224 106 24 2 40 24 115 3 1945—January.. February. March April xMay 275 212 221 632 485 91 925 433 780 1,057 117 462 35 28 48 102 136 5 190 80 99 150 20 103 14 16 28 55 49 July August. . . September October... November December 281 215 226 643 496 92 944 440 795 1,077 121 470 147 41 50 97 7 75 21 12 19 47 88 3 43 39 49 53 13 27 240 177 171 513 331 79 719 297 668 854 70 327 221 160 158 501 278 72 581 278 634 798 51 286 19 17 13 12 53 7 138 19 35 56 19 41 1946—January.. 253 245 111 63 40 118 56 _j Repayment! Other of other debt purposes 62 June 71 170 154 111 215 226 23 49 36 7 26 19 28 35 27 47 124 69 174 144 138 73 49 124 5 1 14 12 1 5 50 1 19 4 121 3 6 6 11 6 12 34 PROPOSED USES OF PROCEEDS, BY MAJOR GROUPS OF ISSUERS [In millions of dollars] Railroad Year or month Public utility 57 139 228 24 85 115 253 32 46 102 115 1944—July August September.. October. . .. November. December. 21 134 189 36 52 82 21 19 10 2 4 1945—January February.. March.... April May June July August September. October. . . November. December. 119 108 119 96 360 75 346 1946—January... Other Total Total Retire- All Total Retire- All Retire- All Retire- All Total net New ment of other net net New ment of other New ment of other net New ment of other pro- money securi- pur- 1 pro- money securi- pur- 4 pro- money securi- pur- 4 pro- money securi- pur- 4 ceeds ties poses ceeds ties ties poses ceeds poses poses ceeds ties 120 774 338 54 182 319 361 47 160 602 1,436 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 Industrial 54 558 110 30 97 186 108 15 114 500 1,320 115 179 35 48 82 246 57 93 74 266 219 68 50 105 84 270 7 1,250 1.987 751 1,208 1,246 18 1.180 1,340 464 469 1.400 2,196 10 62 31 167 499 272 21 30 63 89 180 43 245 317 145 22 40 61 5 3 5 9 7 1,190 1,897 611 943 1.157 922 993 292 423 1.343 2,083 56 26 155 485 265 20 774 30 27 .280 50 1,079 86 831 47 584 13 961 30 828 27 527 25 497 17 1,033 51 1,865 1 2 6 5 150 80 90 136 43 56 121 146 71 76 149 122 390 71 16 102 155 94 4 21 107 194 74 439 616 469 188 167 244 293 228 454 732 550 761 373 226 353 738 463 89 199 504 984 121 47 91 191 47 34 37 36 12 115 22 24 74 10 77 74 23 7 1 3 6 3 2 42 82 27 93 28 9 41 54 16 50 38 89 49 301 111 38 107 26 106 47 6 23 6 9 1C 18 4 15 2 2 40 13 10 27 27 27 15 46 218 57 8 9 42 55 4 13 61 72 152 7 7 88 9 18 4 20 7 1 5 104 21 4 42 60 4 3 47 13 65 60 124 139 184 30 301 115 371 565 42 200 65 60 122 127 183 30 297 110 364 523 35 169 118 223 59 480 221 130 218 4-9 166 117 3 163 63 87 89 17 51 43 43 181 98 64 1 1 4 1 2 29 2 "s 10 3 5 1 4 15 15 1 2 8 Estimates of new issues sold for cash in the United States. Current figures subject to revision. Gross proceeds are derived by multiplying principal amounts or number of units by offering price. Estimated net proceeds are equal to estimated gross proceeds less cost of flotation, i.e., compensation to underwriters, agents, etc., and expenses. penses « Includes repayment of other debt and other purposes. Source.—Securities and Exchange Commission; for compilation of back figures, see Banking and Monetary Statistics (Table 138, p. 491), a publication of the Board of Governors. MARCH 1946 315 QUARTERLY EARNINGS AND DIVIDENDS O F LARGE CORPORATIONS I N D U S T R I A L CORPORATIONS [In millions of dollars] Profits and dividends Net profits,1 by industrial groups Year or quarter Total Iron and steel Machinery Automobiles Other transportation equipment Nonferrous metals and products Other durable goods Oil Foods, produc- Indusbevering trial ages, and chemiand cals tobacco refining Other nondurable goods MiscellaNet neous 1 serv- profits ices Dividends Preferred Common 629 47 69 15 68 77 75 49 45 30 80 74 152 152 152 1,465 1,818 2,163 1,769 1.800 1,896 146 278 325 226 204 194 115 158 193 159 165 174 223 242 274 209 201 222 102 173 227 182 180 190 119 133 153 138 128 115 70 88 113 90 83 88 151 148 159 151 162 175 98 112 174 152 186 220 186 194 207 164 170 187 134 160 187 136 149 147 122 132 152 161 171 184 847 1 028 1 137 888 902 970 90 90 92 88 86 86 564 669 705 552 556 611 Quarterly 1941—i 2 3 4 509 547 558 549 86 84 81 72 44 48 46 55 79 73 60 61 53 56 56 62 39 36 38 40 23 28 30 32 36 43 44 37 29 42 56 46 49 53 52 52 44 48 49 46 28 33 44 47 285 295 282 275 22 23 23 24 150 165 170 221 1942—j 2 3 4% 413 358 445 553 52 52 51 72 38 35 36 49 46 25 46 92 2 46 2 43 2 43 2 50 36 32 34 36 19 18 22 30 32 32 42 44 35 27 42 49 39 35 41 48 39 27 35 35 31 32 52 46 205 174 213 296 21 23 20 23 134 135 125 158 430 433 461 477 52 47 51 53 39 41 41 45 47 50 52 53 248 246 2 46 2 41 34 32 31 31 19 22 20 23 39 37 43 43 36 42 49 58 41 41 40 47 36 36 39 38 39 38 50 44 209 221 226 246 21 22 21 22 127 132 127 170 444 459 475 518 47 46 47 55 40 40 38 55 52 55 55 59 2 52 2 47 247 2 43 29 30 28 28 20 22 21 25 38 43 45 49 49 52 56 64 42 43 49 53 36 37 37 37 39 43 52 50 224 210 244 272 21 22 20 23 142 149 137 184 492 3 508 427 49 53 38 38 42 35 3 63 a 77 45 2 50 2 47 2 34 31 27 23 21 21 19 45 46 46 62 64 61 48 45 43 39 38 36 45 47 49 3 250 '269 223 20 22 21 142 145 143 Number of companies.. 1939 1940 1941 1942 1943 . 1944 1943—i 2 3 4 . . . 1944—i 2 3 4 . . . . . . . . 3 1945—i 2 3 PUBLIC U T I L I T Y CORPORATIONS [In millions of dollars] Railroad4 Year or quarter 1939 1940 1941 1942 1943 1944 Operating revenue 3,995 4,297 5,347 7,466 9,055 9,437 .. 1941—i 2 3 4 Quarterly , . . .... 1942—1 2 3 4 1943—i ... 2 3 4 1944—i 2 3 4 1945—i 2 3 1,152 1,272 1,468 1.454 Income before income tax' Electric power5 Income before income tax* Net income1 Dividends 246 2,647 2,797 3,029 3,216 3,464 3,618 629 692 774 847 914 535 548 527 490 502 444 447 437 408 410 69 103 28 36 751 723 209 182 154 126 (8) 189 34 750 183 107 Net income1 Dividends 93 189 500 902 873 126 159 186 202 217 96 145 267 126 249 674 1,658 2,211 1,971 Telephone 6 668 Operating revenue 915 499 390 Income before income tax* Net income 1 1,067 1,129 1,235 1,362 1,537 1,641 227 248 271 302 374 399 191 194 178 163 180 174 175 178 172 163 168 168 295 308 311 321 67 69 66 68 43 44 45 46 44 45 44 40 Operating revenue Dividends 138 87 805 200 139 1,483 1,797 2,047 2,139 178 390 556 534 90 198 286 327 24 46 30 101 816 770 792 839 234 196 195 222 131 104 105 150 98 96 84 131 324 337 342 359 72 75 72 83 41 41 39 43 44 42 39 38 2,091 2,255 2,368 2,340 515 608 653 435 214 244 250 166 29 52 36 100 864 835 859 906 254 221 210 228 136 118 114 133 99 100 99 113 366 382 391 398 88 96 94 96 42 44 45 48 40 42 43 43 2,273 2,363 2,445 2,356 458 511 550 452 148 174 180 165 31 55 30 130 925 886 878 929 262 241 207 205 135 123 111 130 94 102 94 101 400 406 409 426 97 101 98 104 42 43 43 46 42 42 42 43 2,277 2,422 2,231 425 504 229 139 187 125 30 72 29 971 909 887 292 233 211 139 123 116 102 96 92 436 444 449 115 109 103 46 45 44 41 44 43 166 1 2 "Net profits" and "net income" refer to income after all charges and taxes and before dividends. Partly estimated. 3 Revised net profits figures for the first six months of 1945, published by General Motors Corp., have been allocated by quarters as follows: 1st, 49 million dollars; 2nd, 62 million. * Class I line-haul railroads, covering about 95 per cent of all railroad operations. 6 Class A and B electric utilities, covering about 95 per cent of all electric power operations. Figures include affiliated nonelectric operations. 6 Thirty large companies, covering about 85 per cent of all telephone operations. Series excludes American Telephone and Telegraph Company, the greater part of whose income consists of dividends received on stock holdings in the 30 companies. 7 8 After all charges and taxes except Federal income and excess profits taxes. Not available. Sources.—Interstate Commerce Commission for railroads; Federal Power Commission for electric utilities (nonelectric operations and quarterly figures prior to 1942 are partly estimated); Federal Communications Commission for telephone companies (except dividends); published reports for industrial companies and for telephone dividends. Figures for the current and preceding year subject to revision, especially for war producers whose contracts are under renegotiation. For description of data and back figures, see pp. 214-217 of the March 1942 BULLETIN. 316 FEDERAL RESERVE BULLETIN UNITED STATES GOVERNMENT DEBT—VOLUME AND KIND OF SECURITIES [On basis of daily statements of United States Treasury. In millions of dollars] Marketable public issues1 Total gross direct debt Total interestbearing direct debt 1942—Dec 1943—June Dec 1944—June.... Dec 108,170 136 ,696 165,877 201,003 230,630 107,308 76,488 6,627 135,380 95,310 11,864 164,508 115,230 13,072 199,543 140,401 14,734 228,891 161,648 16,428 1945—Feb. . . . . Mar Apr May June.... July Aug Sept Oct Nov Dec, , 1946—Jan Feb 233,707 233,950 235,069 238,832 258,682 262,045 263,001 262,020 261,817 265,342 278,115 278,887 279,214 231,854 232,026 233,063 235,761 256,357 259,781 260,746 259,630 259,439 262,849 275,694 277,456 277,912 End of month TotaP 162,379 162,625 162,680 162,652 181,319 183,080 183,334 182,833 182,790 185,112 198,778 199,633 199,810 Nonmarketable public issues CertifiTreasury cates of Treasury Treasury indebtbills notes bonds edness 16,399 16,921 17,041 17,049 17,041 17,025 17,038 17,018 17,026 17,026 17,037 17,042 17,032 Total 2 Special U. S. Treasury issues savings tax and bonds savings notes Noninterestbearing debt Fully guaranteed interestbearing securities 10,534 16,561 22,843 28,822 30,401 9,863 9,168 11,175 17,405 23,039 49,268 57,520 67,944 79,244 91,585 21,788. 29,200 36,574 44,855 50,917 V 27,363 34,606 40,361 6,384 7,495 8,586 9,557 9,843 9,032 10,871 12,703 14,287 16,326 862 L,316 L,37O 1,460 1,739 4,283 4,092 4,225 1,516 1,470 30,396 34,544 34,478 34,442 34,136 34,472 34,430 35,072 35,021 35,021 38,155 41,502 41,413 23,039 18,588 18,588 18,588 23,497 23,498 23,498 23,498 23,498 23,498 22,967 19,551 19,551 92,349 92,377 92,377 92,377 106,448 107,890 108,172 107,049 107,049 109,371 120,423 121,358 121,635 52,345 51,833 52,460 54,517 56,226 57,143 57,379 56,278 56,072 57,028 56,915 57,168 57,206 41,698 42,159 42,626 43,767 45,586 46,508 46,715 46,741 46,786 47,473 48,183 48,588 48,692 9,927 8,948 9,109 10,031 10,136 10,119 10,148 9,021 8,776 9,058 8,235 8,107 8,043 17,130 17,567 17,923 18,592 18,812 19,558 20,033 20,519 20,577 20,710 20,000 20,655 20,897 1,853 1,923 2,006 5,071 2,326 2,264 2,255 2,391 2,378 2,492 2,421 1,431 1,301 1,114 1,119 1,132 1,151 409 484 515 527 541 536 553 545 539 15,050 21,256 1 2 Including amounts held by Government agencies and trust funds, which aggregated 7,006 million dollars on Jan. 31, 1946. Total marketable public issues includes Postal Savings and prewar bonds, and total nonmarketable public issues includes adjusted service and depositary bonds not shown separately. 3 Including prepayments amounting to 947 million dollars on securities dated June 1, 1945, sold in the Seventh War Loan, beginning on May 14, 1945. 4 Including prepayments amounting to 54 million dollars on securities dated Nov. 15, 1945, and Dec. 3, 1945, sold in the Victory Loan, beginning 5on Oct. 29, 1945. Including prepayments amounting to 192 million dollars on securities dated Dec. 3, 1945, sold in the Victory Loan, beginning on Oct. 29, 1945 . Back figures.—See Banking and Monetary Statistics, Tables 146-148, pp. 509-512. UNITED STATES GOVERNMENT MARKETABLE PUBLIC SECURITIES OUTSTANDING, FEBRUARY 28, 1946 [On basis of daily statements of United States Treasury. In millions of dollarsl iue and coupon rate Amount Treasury bills 1 Mar. 7, 1946 Mar. 14, 1946 Mar. 21, 1946 , Mar. 28, 1946 Apr. 4, 1946 Apr. 11, 1946 Apr. 18, 1946 Apr. 25, 1946 .May 2, 1946 May 9, 1946 May 16, 1946 May 23, 1946 May 31, 1946 Cert, of indebtedness Mar. 1,1946 Vs Apr. 1,1946 % May 1,1946 % June 1,1946 % Aug. 1, 1946 J4 Sept. 1, 1946 Vi Oct. 1,1946 Ji Nov. 1, 1946 H Dec. 1,1946 % Tan. 1,1947 J4 Feb. 1, 1947 Ji Treasury notes Mar. 15, 1946 July 1, 1946 Dec. 15, 1946 Mar. 15, 1947 Sept. 15, 1947 Sept. 15, 1947 Sept. 15, 1948 Treasury bonds Mar. 15, 1946-56.. June 15, 1946-48 June 15, 1946-49.. Oct. 15, 1947-52.. Dec. 15, 1947 Mar. 15, 1948-50 Mar. 15, 1948-51.. June 15, 1948 Sept. 15, 1948 Dec. 15, 1948-50 June 15, 1949-51 1 1,303 1,302 1,317 1,304 1,303 1,316 1,312 1,317 1,316 1,315 1,309 1,301 1,317 4,147 4,811 1,579 4,799 2,470 4,336 3,440 3,778 3,768 3,330 4,954 1,291 4,910 3,261 1,948 2,707 1,687 3,748 Issue and coupon rate Amount Treasury bonds—Cont. Sept. 15, 1949-51 2 Dec. 15, 1949-51 2 Dec. 15, 1949-52... 3 H Dec. 15, 1949-53... 2K Mar. 15, 1950-52 2 Sept. 15, 1950-52... 2K Sept. 15, 1950-52 2 Dec 15, 1950 IK June 15, 1951-54... 2K Sept. 15, 1951-53 2 Sept. 15, 1951-55 3 Dec. 15, 1951-53.. .2% Dec. 15, 1951-55 2 Mar. 15, 1952-54... 2K June 15, 1952-54 2 June 15, 1952-55... 2 K Dec 15, 1952-54 2 June 15, 1953-55 2 June 15, 1954-56...2 yi Mar. 15, 1955-60...2 % Mar. 15, 1956-58... 2K Sept. 15, 1956-59... 2K Sept. 15, 1956-59... 2% June 15, 1958-63... 2% June 15, 1959-62.. .2% Dec 15, 1959-62... 2 yi, Dec. 15, 1960-65... 2K June 15, 1962-67... 2K Dec. 15, 1963-68... 2K June 15, 1964-69... 2 xH Dec 15, 1964-69... 2 /2 Mar. 15, 1965-70... 2 y2 Mar. 15, 1966-71. ..2 Y2 June 15, 1967-72... 2K Sept. 15, 1967-72... 2K Dec. 15, 1967-72... 2K 510 1,024 5,825 1,501 8,662 725 681 2,611 1,449 982 3,823 919 5,284 3,458 1,485 2,118 2,831 3,761 3,838 5,197 3,481 7,967 2,716 11,668 Postal Savings bonds 2K Conversion b o n d s . . . . 3 Panama Canal l o a n . . 3 117 13 50 1,292 2,098 491 1,786 1,963 1,186 4,939 2,635 1,627 7,986 755 1,118 2 489 31,036 3819 759 701 1,115 1,223 3,062 451 571 1,014 Total direct issues... 199,810 Guaranteed securities Federal Housing Adroin, Various 39 Sold on discount basis. See table on Open-Market Money Rates, p. 2313. Called for redemption on Mar. 15, 1946. 8 Called for redemption on June 15, 1946. MARCH 1946 UNITED STATES SAVINGS BONDS [In millions of dollars] Month RedempAmount Funds received from sales during tions and in outmaturities standing at end of All All Series Series Series month G E F series series 1944—Aug.... Sept.... Oct.. . . Nov.... Dec. . . 36,883 37,323 37,645 38,308 40,361 1945—Jan Feb.. . . Mar.... Apr.. . . May. . . June. . . July... Aug Sept.... Oct Nov.... D e c . .. 1946—Jan.. . . Feb.. . . 41,140 41,698 42,159 42,626 43,767 45,586 46,508 46,715 46,741 46,786 47,473 48,183 48,588 48,692 499 591 599 807 602 692 695 1,023 2,386. 18 16 14 43 125 848 889 838 804 653 712 684 1,540 2,178 1,295 1,195 1,468 1,032 700 514 625 571 420 510 865 908 641 367 1,184 1,254 960 622 279 283 401 382 365 42 31 27 23 63 178 47 22 18 8 54 83 40 30 1,855 1,074 85 85 83 174 406 228 164 151 130 282 532 215 107 76 107 265 262 278 225 341 323 464 404 426 403 428 531 528 616 533 559 629 565 Maturities and amounts outstanding, February 28, 1946 Year of . maturity 1946 .... 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 .... 1957 1958 Unclassified. . Total All series 294 422 496 802 989 1,639 4,841 8,861 11,894 10,843 4,100 3,102 512 -104 48,692 Series B-D Series E Series F Series G ""213" 584 659 738 586 60 1,175 2,293 2,417 2,775 2,516 452 2,841 11,628 294 422 496 802 989 442 3,446 1,197 4,841 7,473 9,016 7,766 587 30,881 317 OWNERSHIP OF UNITED STATES GOVERNMENT SECURITIES, DIRECT AND FULLY GUARANTEED [In millions of dollars] End of month Total interestbearing securities Held by U. S. Government agencies and trust funds Special issues Public issues Privately held1 Held by Federal Reserve Banks Other investors Total Commercial banks Mutual savings banks Insurance companies Marketable issues Nonmarketable issues 1942—June December 1943—June December 1944—June December 76,517 111,591 139,472 168,732 201,059 230,361 7,885 9,032 10,871 12,703 14,287' 16,326 2,738 3,218 3,451 4,242 4,810 5,348 2,645 6,189 7,202 11,543 14,901 18,846 63,249 93,152 117,948 140,244 167,061 189,841 26,410 41,373 52,458 59,842 68,431 77,558 3,891 4,559 5,290 6,090 7,306 8,328 9,200 11,300 13,100 15,100 17,300 19,600 10,700 14,800 18,700 23,700 30,700 35,200 13,000 21,100 28,400 35,500 43,300 49,200 1945—April May June July.. August September October November December 234,194 236,912 256,766 260,265 261,261 260,156 259,980 263,386 276,246 17,923 18,592 18,812 19,558 20,033 20,519 20,577 20,710 20,000 5,262 5,217 6,128 6,105 6,121 6,123 6,175 6,134 7,038 20,455 20,954 21,792 21,717 22,530 23,328 23,276 23,472 24,262 190,554 192,149 210,034 212,885 212,577 210,186 209,952 213,070 224,946 77,400 77,500 84,069 85,300 84,500 83,500 84,200 85,600 90,000 8,700 8,700 9,588 9,800 10,000 10,000 10,000 9,800 10,700 20,500 20,100 22,700 22,700 22,500 22,500 22,400 '22,300 24,100 33,300 33,100 39,500 40,100 40,300 40,000 39,400 '40,400 45,300 50,700 52,700 54,200 55,000 55,300 54,200 54,000 55,000 54,800 1 Figures for insurance companies and other investors have been rounded to nearest 100 million dollars for all dates, and figures for commercial banks and mutual savings banks have been rounded to nearest 100 million for all dates except June and December for which call report data are r available. Back figures.—See Banking and Monetary Statistics, Table 149, p. 512. Revised. SUMMARY DATA FROM TREASURY SURVEY OF OWNERSHIP OF SECURITIES ISSUED OR GUARANTEED BY THE UNITED STATES * [Public marketable securities. Par values in millions of dollars] Total outstanding U. S. Govern- Fed- Com- Mument eral mer- tual fnsursav- ance Other agen- Recial cies serve banks ings comand Banks 0) banks panies trust funds Total:2 1944—Dec.. . 1945—June.. July. . Aug... Sept.. Oct... Nov. . Dec... 162,843 181,353 183,114 183,369 182,870 182,829 185,151 198,820 5,338 6,112 6,083 6,092 6,094 6,146 6,104 7,009 Treasury bills: 1944—Dec.. . 1945—June.. July.. Aug. Sept Oct.! . Nov. . Dec.. 16,428 17,041 17,025 17,038 17,018 17,026 17,026 17,037 6 3 9 15 18 21 18 5 Certificates: 1944—Dec.. . 1945—June.. July. . Aug... Sept.. Oct.. . Nov. . Dec... 30,401 34,136 34 ,'472 34,430 35,072 35,021 35,021 38,155 62 47 45 46 55 77 62 38 Treasury notes: 1944—Dec.. . 1945—June.. July.. Aug... Sept.. Oct... Nov. . Dec... 23,039 23,497 23,498 23,498 23,498 23,498 23,498 22,967 Guaranteed securities: 1944—Dec.. . 1945—June.. 1,194 End of month July.. Aug... Sept.. Oct... Nov. . Dec... 34 34 35 37 39 39 41 18,761 39,670 20,930 45,652 21,146 45,939 21,273 45,837 21,437 45,227 21,501 44,512 21,375 45,679 23,183 51,046 18,846 72,045 21,792 77,484 21,717 78,609 22,530 77,862 23,328 76,939 23,276 77,547 23,472 78,935 24,262 82,830 8,183 9,382 9,621 9,775 9,845 9,847 9,587 10,491 11,148 12,962 12,810 13,254 13,234 13,172 12,593 12,831 4,113 2,798 2,737 2,193 2,035 1,978 2,306 2,476 1 1 2 2 10 6 14 1 4 1 4,887 6,032 6,096 6,400 7,184 7,206 7,800 8,364 15,032 16,789 16,812 16,413 16,209 16,230 16,358 18,091 136 92 96 158 211 221 171 91 310 420 454 423 494 553 561 360 9,974 10,756 10,968 10,991 10,918 10,735 10,070 11,211 60 1,566 15,411 52 1,685 16,076 52 1,698 16,211 52 1,762 16,058 53 1,933 15,830 80 1,920 15,834 71 2,102 15,678 8 2,120 15,701 336 242 244 247 260 258 223 179 568 601 598 587 581 591 607 576 5,098 4,841 4,695 4,793 4,841 4,815 4,817 4,383 960 10 10 11 12 12 13 11 6 2 2 2 .2 2 3 3 22 13 13 13 13 13 14 14 203 3 3 2 4 4 3 6 1 6 6 7 7 7 7 7 3 1,159 1,273 1,466 1,574 1,721 1,850 i 2,094 1 1,723 Total outstanding End of month Treasury bonds: Total: 1944—Dec.. . 1945—June.. July.. Aug... Sept.. Oct... Nov. . Dec... Maturing within 5 years: 1944—Dec.. . 1945—June.. July. . A.UK * • " & • • • Sept.. Oct... Nov. Dec.. Maturing in 5-10 years: 1944—Dec.. . 1945—June.. July. . Aug... Sept.. Oct... Nov. . Dec... Maturing in 10-20 years: 1944—Dec. . 1945—June.. July. . Aug... Sept.. Oct... Nov. . Dec... Maturing after 20 years: 1944—Dec.. . 1945—June.. July.. Aug... Sept Oct.;. Nov. . Dec... 91,585 106,448 107,890 108,172 107,049 107,049 109,371 120,423 U. S. Govern- Fed- Com- Mu- Insurmer- tual ment eral sav- ance Other cial agen- Recies serve banks ings combanks panies and Banks C1) trust funds 5,173 5,968 5,936 5,937 5,926 5,926 5,911 6,915 1,243 1,113 1,113 1,114 977 977 977 947 36,508 41,795 42,822 43,170 42,834 43,477 44,564 46,535 7,704 17,859 9,045 19,892 9,278 20,079 9,365 20,251 9,360 20,348 9,360 20,343 9,176 20,192 10,217 22,230 23,098 28,636 28,661 28,334 27,604 26,964 28,551 33,579 7,824 8,939 8,939 8 939 7,725 7,725 8 214 10,879 518 547 530 532 381 379 456 481 4,834 5,770 5,814 5,803 5,126 5,177 5,387 7,282 137 172 175 183 181 184 173 161 556 375 350 352 320 304 277 257 1,777 2,074 2,069 2 068 1,714 1,681 1 917 2,697 44,087 48,155 48,423 48,425 49,180 49,180 49,180 46,484 ,504 L.333 L.322 1,319 L.398 ,396 L,386 ,340 24,445 29,147 29,954 30,209 30,798 31,241 32,125 31,317 3,556 3,400 3,228 3,101 3,056 2,970 2,705 2,460 4,230 4,267 4,194 4,163 4,179 4,066 3,945 3,840 10,357 10,009 9,725 9,631 9,749 9,506 9,021 7,534 14,445 16,727 17,307 17,446 16,748 16,748 16,880 20,532 1,028 1,054 1,058 1,057 982 985 907 967 5,354 4,562 4,667 4,687 4,388 4,451 4,371 5,406 1,887 2,458 2,673 2,814 2,868 2,928 2,966 3,298 2,612 2,471 2,476 2,534 2,493 2,505 2,458 2,995 3,563 6,179 6,433 6,352 6,020 5,880 6,178 7,865 25,227 32,626 33,219 33,360 33,394 33,394 35,095 42,526 3,366 4,146 4,140 4,141 4,141 4,140 4,139 5,073 1,873 2,317 2,385 2,470 2,521 2,609 2,679 2,532 2,125 3,010 3,200 3,266 3,257 3,277 3,333 4,300 10,462 12,779 13,061 13,199 13,357 13,466 13,511 15,141 7,401 10,375 10,435 10,284 10,120 9,900 11,432 15,482 * Figures include only holdings by institutions or agencies from which reports are received. Data for commercial banks, mutual savings banks, and the residual "other" are not entirely comparable from month to month. Since June 1943 the coverage by the survey of commercial banks has been expanded. Figures in column headed "other" include holdings by nonreporting banks and insurance companies as well as by other investors. Estimates of total holdings (including relatively small amounts of nonmarketable issues) by all banks and all insurance companies for certain dates are shown in the table above. 1 Including stock savings banks. On Dec 31, 1945, commercial banks reporting to the Treasury held 30,538 million dollars of U. S. Government securities due or callable within one year out of a total of 70,546 million outstanding. 2 Including 196 million dollars of Postal Savings and prewar bonds not shown separately below. 318 FEDERAL RESERVE BULLETIN SUMMARY OF TREASURY RECEIPTS, EXPENDITURES, AND RELATED ITEMS [On basis of daily statements of United States Treasury. In millions of dollars] Change in general fund balance MisTransTrust Income taxes1 cella- Social NaTotal neous Secu- Other Total Net Inter- tional fers to Other budget Defiacest extrust inter- rity rerere- 3 on deac- pendi- expend- cit counts nal ceipts ceipts ceipts debt fense counts, tures itures etc.4 With- Other reve- taxes etc. nue1 held2 Period Increase gross debt Fiscal year ending: 16,094 4,553 1,508 1,230 23,385 22,282 1,808 72,109 June 1943 435 3,827 78,179 55,897 -1,861 +6,515 64 ,274 June 1944 8,393 26,262 5,291 1,751 3,711 45,408 44,149 2,609 87 ,039 556 3,540 93,744 49,595 +4,051 + 10,662 64 ,307 June 1945 10, 289 24 ,884 6,949 1,793 3,824 47,740 46 ,457 3,617 90 ,029 1,646 5,113 100,405 53,948 +798 +4,529 57,679 1945—February. . March April May June July August September. October.... November. December.. 1,295 883 600 1,282 826 669 1,200 768 572 1946—January... February. . 1,627 4,935 1,567 745 3,930 1,073 466 3,440 1,021 449 1,076 707 2,659 552 520 534 557 561 718 877 573 689 602 516 341 96 46 337 69 66 306 69 58 257 69 172 3,987 3,767 473 6,908 6,892 221 2,967 2,929 477 3,398 3,085 529 5,916 5,914 228 2,754 2,695 2,997 432 5,189 342 241 2,581 2,530 225 2,609 2,374 170 4,122 4,118 554 2,201 1,086 1,704 645 584 51 310 397 191 48 45 236 296 335 530 162 34 38 373 513 455 757 460 547 695 564 617 348 384 7,460 9,433 7,968 9,275 9,641 8,557 7,354 6,611 5,950 4,656 5,445 309 3,417 118 2,702 3,848 3,819 3,875 3,678 684 148 482 543 4.891 1,073 3,510 + 168 Period Net receipts Net expenditures in checking acExInvest- pendi- counts of Governments tures ment agencies Other Receipts -276 +39 1,300 242 1,120 3,763 19,850 3,362 956 -980 -203 3,524 12,773 -577 +534 772 327 General fund of the Treasury (end of period) Details of trust accounts, etc. Social Security accounts ,693 +101 292 ,540 +262 036 ,040 911 +9 6,190 ,741 +686 3,727 -1,050 + 15,073 5,862 ,615 -116 4,357 ,451 -50 1,422 ,497 -95 3,420 +302 ,321 2,282 632 +390 1,327 + 113 + 11,558 6,948 8,246 7,139 8,156 7,837 7,324 6,398 5,365 5,124 4,224 4,244 91 628 139 66 1,009 156 99 647 172 84 817 Assets Investments Total Expenditures Deposits in Federal Reserve Banks Deposits in special depositaries Total liabilities Other assets Balance in general fund Fiscal year ending June 1943 June 1944.... June 1945 2,810 3,202 3,239 2,350 2,816 2,757 456 380 453 2,194 4,403 1,178 1,117 1,851 3,820 655 1,313 2,444 133 192 -571 10,149 20,775 25,119 1,038 1,442 1,500 7,667 18,007 22,622 1,444 1,327 997 643 607 421 9,507 20,169 24,698 1945—February. . March April May June July August September. October November. December.. 432 66 122 592 217 312 543 52 132 419 54 208 227 48 271 482 203 239 241 -66 38 198 37 43 40 42 42 51 56 91 146 143 149 313 -407 71 -154 778 222 -26 51 -274 -79 -395 250 270 412 530 701 579 336 407 284 295 260 122 128 228 296 663 441 172 163 80 65 54 -98 84 137 -21 3 89 487 9 228 158 195 17,734 15,722 11,809 10,055 25,119 22,469 19,018 16,582 13,307 14,849 26,520 1,384 1,547 1,224 1,140 1,500 1,252 1,300 1,755 1,124 1,372 1,674 15,265 13,055 9,492 7,941 22,622 20,303 16,874 13,989 11,389 12,694 24,044 1,085 1,120 1,093 974 997 914 844 839 794 784 802 420 445 443 430 421 386 387 447 494 404 517 17,313 15,277 11,366 9,625 24,698 22,082 18,631 16,134 12,813 14,445 26,003 -36 -13 178 178 -9 9 810 393 583 548 25,851 26,414 1,011 1,209 24,030 24,447 810 758 424 453 25.427 25,961 1946—January. . . February.. 178 355 534 1 3 2 Details on collection basis given in table below. Withheld by employers (Current Tax Payment Act of 1943). Total receipts less social security employment taxes, which are appropriated directly to the Federal old-age and survivors insurance trust fund. < Excess of receipts ( + ) or expenditures ( —). Back figures.—See Banking and Monetary Statistics, Tables 150-151, po. 513-516. INTERNAL REVENUE COLLECTION^ [On basis of reports of collections. In millions of dollars] Miscellaneous internal revenue Income taxes Period Total Fiscal year June June June Current Withindi- held 1 vidual Current Back Excess Other corpo- taxes profits profits Total taxes taxes ration Victory tax ending: 1943.... 16,299 5,771 33,028 10,254 '7,638 1944 1945.... 35,062 8,567 10,263 686 4,137 785 4,763 1 4,422 3,024 1,889 690 3,158 759 1,892 4,996 1,737 61 2,408 907 915 2,406 201 1,751 4,025 1,127 46 June 2,242 318 1,249 July 1,916 87 1,461 August 32 September. . . 3,553 1,112 2,031 271 1,094 October 41 1,405 November. . . 1,856 2,742 539 27 December 43 57 956 160 70 858 161 74 768 191 105 660 126 143 59 -26 79 79 75 62 46 47 50 105 270 301 2,170 443 295 1,895 429 .228 1,584 421 248 1,398 151 222 536 1945—January February.... March April May 1946—January 1 3,189 1,670 604 i -1 • 557 5,064 705 9,345 661 11,004 Manufacturers' Capi- Estate Alco- Toholic and tal and bever- bacco Stamp stock gift age taxes taxes retailers' tax excise taxes taxes taxes 84 4,571 137 5,353 1 144 6,960 11 6 6 13 547 510 560 517 571 572 791 824 531 706 605 512 6 643 6 13 9 10 21 8 329 381 372 ' " ios 209 7 30 447 1,423 511 1,618 643 2,310 924 988 932 45 51 66 Miscellaneous taxes 670 732 729 1,075 1,207 1,430 49 37 89 75 64 62 49 69 34 44 44 45 206 195 171 171 180 191 198 199 198 243 230 188 78 66 74 68 83 93 84 108 101 120 98 62 6 6 6 5 6 6 6 5 6 7 8 7 117 116 104 97 116 104 121 102 93 122 112 107 90 90 117 100 121 116 228 132 93 140 113 102 61 221 96 8 136 121 Withheld by employers (Current Tax Payment Act of 1943). MARCH 1946 319 GOVERNMENT CORPORATIONS AND CREDIT AGENCIES [Based on compilation by United States Treasury Department. In millions of dollars] PRINCIPAL ASSETS AND LIABILITIES Liabilities, other than interagency items Assets, other than interagency items l Corporation or agency Total Cash All agencies: Mar. 31, June 30, Sept. 30, Dec. 31, 1945. 1945. 1945. 1945. 31,309 33,552 34,247 33,844 768 700 815 925 Classification by agency Dec. 31, 1945 Department of Agriculture: Farm Credit Administration: Banks for cooperatives 268 Federal intermediate credit banks. . 298 Federal land banks 1,231 Production credit corporation 124 Regional Agricultural Credit Corp.. 16 17 Other3 Federal Farm Mortgage Corp 191 Rural Electrification Administration. 416 War Food Administration: Commodity Credit Corp 1,311 Farm Security Administration.'..... 458 Federal Crop Insurance Corp 39 Federal Surplus Commodities Corp. 3 National Housing Agency:4 Federal Home Loan Bank Administration: Federal home loan banks Federal Savings and Loan Insurance Corp. Home Owners' Loan Corp Federal Public Housing Authority and affiliate: Federal Public Housing Authority. Defense Homes Corp Federal Housing Administration Federal National Mortgage Association. R.F.C. Mortgage Company U. S. PriBonds, notes, Gov- vately Land, and debenernstruc- Undis- Other tures payable Other ment owned tribtures, asliabil- inter- interuted est U. S. and ities est Govt. Other equip- charges sets Fully guarsecu- secu- ment Other anteed rities rities by U.S. 5,789 5,544 5,409 5,290 1,756 1,679 1,756 1,683 2,960 2,507 2,487 2,288 Investments 196 231 1,016 43 43 145 67 388 375 368 325 16,734 20,164 20,816 21,017 1,001 772 442 472 1,913 1,811 2,154 1,845 99 320 1,150 502 551 555 1,237 1,163 1,135 1,113 195 118 840 161 15 552 66 168 7 50 286 1 19 7 38 491 9 3 1,970 69 125 36 3 21 3 222 64 244 27 () 252 6 80 2 7 78 6,912 312 8,654 1 1 6 34 1! 1 130 649 580 172 3 950 7,876 6 11 152 103 150 642 2 12 43 3 259 13 897 30 551 65 128 7 47 1,630 () 19 lj 14 7,813 1 49 95 100 884 106 991 1,131 8 230 314 449 46 506 135 49 24 1,034 451 459 465 472 252 51 169 123 14 15 181 416 2 6 5 165 919 132 179 16 1 16 2 7 21 149 23 ,510 27 ,266 27 ,610 27 ,492 55 3 65 4,962 4,162 4,486 4,212 245 792 4 13 173 407 335 Reconstruction Finance Corp. 5 10,283 Office of Emergency Management: Smaller War Plants Corp 175 War Shipping Administration 8,825 Coordinator of Inter-American Affairs. . 17 Export-Import Bank 256 931 Federal Deposit Insurance Corp 272 Federal Works Agency 741 Tennessee Valley Authority 3,739 U. S. Maritime Commission All other CommodiLoans ties, resupceiv- plies, able and materials 147 721 3,395 1,684 139 272 8 734 102 3,638 1,909 CLASSIFICATION OF LOANS BY PURPOSE AND AGENCY Dec. 31, 1945 Purpose of loan Fed. Fed. Fed. Farm inter- Banks land Mort. medi- for coate banks Corp. credit operatives banks 1,088 To aid agriculture To aid home owners To aid industry: Railroads Other To aid financial institutions: Banks Other Other 72 Less: Reserve for losses. Total loans receivable 1,016 (net) 242 231 197 Com- Rural Elecmodity trificaCredit tion Corp. Adm. 99 407 Farm Security Adm. Home Owners' Loan Corp. ExFed. Fed. Public home R.F.C. portand ImHous- loan affiliport ing Auth. banks ates Bank (2) 43 467 852 195 70 173 231 (2) (2) 196 99 407 147 12 320 840 286 195 2,948 961 18 83 28 32 582 ' *252" 3 (2) 1,036 Sept. 1945 All 30, all agen- agencies cies 145 2,878 896 1 205 149 286 All other 252 223 232 232 185 12 40 227 1,232 438 43 132 1,365 457 238 5,290 5,409 ' iii' 133 1 3 4 5 2 Assets are shown on a net basis, i.e., after reserves for losses. Less than $500,000. Includes Agricultural Marketing Act Revolving Fund and Emergency Crop and Feed Loans. All assets and liabilities of the United States Housing Corp. have been liquidated. Includes War Assets Corporation (formerly Petroleum Reserves Corporation), Rubber Development Corporation and U. S. Commercial Company, which were transferred to the Reconstruction Finance Corporation from Foreign" Economic Administration under Executive Order 9630, and War Damage Corporation. NOTE.—'This table is based on the revised form of the Treasury Statement beginning Sept. 30, 1944, which is on a quarterly basis. Quarterly, figures are not comparable with monthly figures previously published. Monthly figures on the old reporting basis for the months prior to Sept. 30, 1944, may be found in earlier issues of the BULLETIN (see p. 1110 of the November 1944 BULLETIN) and in Banking amd Monetary Statistics Table 152, p. 517. 320 FEDERAL RESERVE BULLETIN BUSINESS INDEXES [The terms "adjusted" and "unadjusted" refer to adjustment of monthly figures for seasonal variation] Construction contracts awarded (value)3 1923-25=100 Industrial production (physical volume)* 2 1935-39=100 Year and month Income payments (value) 1935-39 100 Manufactures Total Durable Adjusted P166 71 83 66 71 98 89 92 100 100 99 107 93 80 67 76 80 86 99 112 97 106 117 125 129 132 140 P137 63 63 56 79 84 94 122 129 129 135 117 92 63 28 25 32 37 55 59 64 72 81 122 166 68 41 68 344 351 356 359 358 360 365 368 374 376 365 174 174 175 176 177 177 178 179 179 180 174 131 133 131 129 117 134 135 138 136 133 137 240 240 238 23 236 236 232 23: 234 234 232 230 369 367 364 361 356 354 347 348 342 344 341 343 176 177 175 172 169 169 165 168 168 169 173 173 230 23 23! 229 225 220 211 188 171 164 167 161 345 346 345 336 323 308 292 239 194 186 '191 185 175 176 176 174 173 173 165 157 156 154 158 156 140 141 142 140 138 144 143 140 134 124 138 133 P167 P159 P139 229 232 236 239 238 241 245 248 249 247 239 1944 January... February.. March April May , June July August September October. . . November December 227. 232.4 231.9 231.1 232.1 233.9 233.2 234.0 232.5 235. 237.5 239.0 243 244 241 239 236 235 230 232 230 232 232 232 1945 January.. . February.. March April May June July August September October... November, December. 241.9 245. 244.1 242.3 241.9 244.6 243.4 236.0 229.0 231.4 2235.7 P233.8 234 236 235 230 225 220 210 186 167 162 168 163 P239. 209.4 1946 January All other 139 142 139 140 143 142 139 142 143 143 143 137 212.8 214.8 216. 216.8 219.3 222.9 224. 232 235 237 239 237 240 242 244 247 247 241 122.9 109 92.3 70.6 68.9 78.7 87 101.3 107 98.5 105.4 113. 138.0 174.6 213.0 233 203.5 206.9 208.8 Residential 102 85 63 52 45 60 59 65 49 60 61 84 93 53 81 103 95 107 114 107 117 132 98 67 41 54 65 83 108 122 78 109 139 201 279 360 353 P274 1943 February.. March April May June July August September October. . . November. December Total Nonagricultural Factory Department WholeFacsale Cost of tory Freight store comliving4 carload- sales ray modity 1935-39 ings' rolls4 (valprices* 100 1935-39 ue)* 1939 = 100 1935-39 1926 100 = 100 100 AdAdAdAdAd- Unad- AdAdAd- Unad- UnadAdAdjusted justed justed justed justed justed justed justed justed justed justed justed justed 72 75 58 73 88 82 90 96 95 99 110 91 75 58 69 75 87 103 113 89 109 125 162 199 239 235 P203 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933..... 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 Nondurable Minerals Employment4 1939=100 P159 62 60 57 67 72 69 76 79 83 85 93 84 79 70 79 81 90 100 106 95 109 115 142 158 176 171 44 30 44 68 81 95 124 121 117 126 87 50 37 13 11 12 21 37 41 45 60 72 89 82 40 16 26 79 90 65 88 86 94 120 135 139 142 142 102.6 125 95.5 84 86.1 40 75.5 37 76.0 48 83.8 50 87.6 70 94.9 74 100.9 80 94.4 81 100.0 89 104.7 149 117.5 235 126.7 92 130.9 61 127.5 102 P121.8 103. 104. 79. 88. 101, 93, 97, 98. 96. 96. 103. 89 75. 64, 71 83, 88, 96 105 90 100 107 132 154 177 169 P143 103.2 123.5 79.7 85.5 108.4 101.2 106.6 109.9 107.9 109.1 116.4 94.1 71.2 49.2 52.8 67.8 78.0 90.5 108.2 84.2 100.0 114.5 167.5 245.2 334.4 339.1 P277.3 120 129 110 121 142 139 146 152 147 148 152 131 105 78 82 89 92 107 111 89 101 109 130 138 137 140 135 Adjusted 83 99 92 94 105 105 110 113 114 115 117 108 97 75 73 83 88 100 107 99 106 114 133 150 168 186 207 Unadjusted Unadjusted 138.6 154.4 97.6 96.7 100.6 98.1 103.5 100.0 95.4 96.7 95.3 86.4 73.0 64.8 65.9 74.9 80.0 80.8 86.3 78.6 77.1 78.6 87.3 98.8 103.1 104.0 105.8 124.5 143.2 127.7 119.7 121.9 122.2 125.4 126.4 124.0 122,6 122.5 119 108 97.6 92. 95. 98.1 99.1 102.7 100.8 99.4 100.2 105.2 116.5 123.6 125.5 128.4 75 96 118 112 89 73 79 91 104 121 134 150 48 59 72 70 58 50 54 61 69 S3 94 108 P60 131.6 132.0 131.4 130.9 131.0 131.4 130.9 130.1 130.1 130.2 130.1 173.1 175.1 176.2 176.9 179.0 180.1 180.2 179.6 180.6 181.5 179.9 172.5 174.6 175.4 175.8 178.3 180.2 181.4 180.8 181.4 181.9 180.3 308.9 318.0 324.9 330.4 336.1 335.8 343.1 349.5 354.9 359.7 350.7 139 138 136 135 127 141 140 140 137 139 143 161 '160 159 168 169 166 165 172 '176 '168 102.5 103.4 103.7 104.1 103.8 103.2 103.1 103.1 103.0 102.9 103.2 121.0 122.8 124.1 125.1 124.8 123.9 123.4 123.9 124.4 124.2 124.4 130.0 129.6 128.9 128.0 127 127 127.5 127.3 126 125 125.3 125.7 140 119 87 68 55 80 79 89 61 78 81 178.1 177.1 174.6 171.8 170.1 169.2 167.6 166.8 164.9 163.3 162.6 163.0 177.5 176.5 174.1 171.0 169.1 168.6 167.7 167.9 166.0 164.1 163.0 163.3 350.0 349.7 346.3 339.8 339.2 339.5 331.7 335.0 333.8 335.1 331.8 336.8 142 140 138 138 139 142 142 139 137 141 137 174 '174 183 '174 183 176 189 187 187 193 '204 196 103.3 103.6 103.8 103.9 104.0 104.3 104.1 103.9 104.0 104.1 104.4 104.7 124.2 123.8 123.8 124.6 125.1 125.4 126.1 126.4 126.5 126.5 126.6 127.0 126.6 162.9 162.4 335.2 126.7 162.5 162.0 333.7 126.7 160.6 160.2 330.2 125.1 157.6 156.9 321.5 124.4 154.5 153.6 307.0 123.4 151.0 150.5 302 122 145.5 145.6 286 121.5 141.1 142.1 256 115.8 121.4 122.4 214.2 115.4 '120.6 '121.4 -•212 '116.4 121.2 121.6 '212.5 117.4 121.3 121.6 215.5 '144 139 145 141 140 140 139 128 127 118 133 127 197 211 220 '182 188 202 218 200 '200 '212 '225 216 104.9 105.2 105.3 105.7 106.0 106.1 105.9 105.7 105.2 105.9 106.8 107.1 127.1 126.9 126.8 127.1 128.1 129.0 129.4 129.3 128.9 128.9 129.2 129.9 133 226 107.1 129.9 P148 P119.3 P122.7 P122.2 ••191 r * Average per working day. P Preliminary. Revised. 1 Department of Commerce series on value of payments to individuals. 2 For indexes by groups or industries, see pp. 322-325. For points in total index, by major groups, see p. 339. 3 Based on F. W. Dodge Corporation data; for description, see p. 358 of BULLETIN for July 1931; by groups, see p. 329 of this BULLETIN. 4 The unadjusted indexes of employment and pay rolls, wholesale commodity prices, and cost of living are compiled by or based on data of the Bureau of Labor Statistics. Nonagricultural employment covers employees only and excludes personnel in the armed forces. 5 For indexes by Federal Reserve districts and other department store data, see pp. 331-333. Backfiguresin BULLETIN.—For industrial production, August 1940, pp. 825-882, September 1941, pp. 933-937, and October 1943, pp. 958-984; for factory employment, January and December 1943, pp. 14 and 1,187, respectively, and October 1945, pp. 1054-1055; for department store sales, June 1944, pp. 549-561. MARCH 1946 321 INDUSTRIAL PRODUCTION, BY INDUSTRIES {Adjusted for Seasonal Variation) | Index numbers of the Board of Governors. 1935-39 average = 100] 1944 1945 Industry Dec. Jan. Feb. Mar. Apr. M a y June July Aug. Sept. Oct. Nov. Dec. Jan. Industrial Production—Total. 232 234 236 235 230 225 220 210 186 167 162 168 163 249 251 252 252 247 240 233 222 194 173 168 173 169 343 345 346 345 336 323 308 292 239 194 186 191 185 167 197 202 210 206 204 192 187 155 163 146 167 165 105 190 215 181 456 188 219 176 526 226 180 552 198 234 189 561 188 232 184 573 190 229 182 567 181 214 173 505 182 203 172 421 161 164 142 319 166 171 154 296 129 159 139 307 158 178 160 306 164 173 156 294 431 431 436 419 405 393 371 310 230 232 231 230 709 706 695 676 651 610 572 535 27 Z 258 250 218 216 235 235 242 236 231 218 207 188 142 105 120 135 94 101 229 253 257 267 263 248 219 196 165 138 143 146 144 186 187 191 193 194 188 184 183 171 150 148 147 247 280 284 296 291 272 234 202 162 '133 '141 146 Lumber and Products 122 126 123 121 119 118 116 110 107 98 91 93 P!09 Lumber. . Furniture. 111 142 118 142 112 146 110 109 140 108 138 104 138 98 134 98 124 89 115 76 120 7? 133 P95 160 161 161 164 175 177 61 217 97 110 162 260 200 79 243 97 110 172 220 186 50 235 106 116 177 218 181 3 244 119 124 183 217 189 29 246 131 143 '203 '218 156 Manufactures—Total Durable Manufactures. . Iron and Steel. . . Pig iron Steel Open hearth. . Electric Machinery 163 >221 Manufacturing Arsenals and Depots1. Transportation Equipment Automobiles (Aircraft; Railroad cars; Locomotives; Shipbuilding—Private and Government) 1 Nonferrous Metals and Products. Smelting and refining (Copper smelting; Lead refining; 1Zinc smelting; Aluminum; Magnesium; Tin) Fabricating (Copper products; Lead shipments; Zinc shipments; Aluminum products; Magnesium products; Tin consumption) 1 Stone, Clay, and Glass Products. . , 163 Nondurable Manufactures. 162 163 166 167 162 166 174 51 218 90 116 171 307 Glass products Plate glass Glass containers Cement Clay products Gypsum and plaster products. . . Abrasive and asbestos products.. Other stone and clay products 1 . . 169 164 60 200 87 125 182 302 168 56 207 87 122 185 305 175 61 216 86 124 183 306 183 62 225 85 122 180 300 179 61 221 85 115 168 295 176 43 223 95 121 172 298 193 62 239 93 117 179 287 154 158 156 159 146 143 150 134 138 215 131 128 215 135 133 226 132 125 228 138 234 127 58 172 136 145 125 136 142 82 186 154 158 149 144 147 93 191 156 156 156 149 150 '89 193 160 163 156 154 149 104 184 156 158 153 154 Leather, tanning Cattle hide leathers Calf and kip leathers Goat and kid leathers Sheep and lamb leathers Shoes 109 108 119 112 116 110 109 128 79 50 133 109 98 112 75 47 130 114 112 125 97 52 151 123 107 121 89 46 145 116 109 -•125 83 51 140 120 114 132 91 49 139 108 151 147 138 144 143 150 151 138 135 130 127 129 133 136 P143 90 179 206 P148 P154 89 181 222 85 171 208 P148 75 160 201 P145 87 175 196 72 155 156 65 149 146 P132 60 144 136 132 135 134 95 128 141 144 142 103 142 140 146 136 116 133 133 126 144 151 110 141 120 165 179 125 129 99 159 197 134 155 153 158 189 135 155 171 138 138 148 176 176 174 173 165 157 155 153 149 150 132 134 141 146 215 139 145 215 144 152 215 142 150 214 137 143 218 138 142 221 121 123 220 123 123 213 152 57 215 165 170 157 166 146 49 225 156 162 148 159 151 44 238 160 170 146 169 149 43 249 156 166 142 166 142 36 233 147 153 139 161 146 42 243 151 161 137 165 144 40 234 152 162 137 161 117 33 185 124 129 117 129 113 121 122 122 121 127 115 127 86 72 154 113 Leather and Products. 175 150 114 Textile fabrics Cotton consumption Rayon deliveries Nylon and silk consumption 1 . . . Wool textiles Carpet wool consumption.. Apparel wool consumption. Woolen and worsted yarn.. Woolen yarn Worsted yarn Woolen and worsted cloth . 138 141 173 152 Textiles and Products 146 113 125 85 68 155 119 137 89 63 148 123 117 132 88 69 144 126 118 134 95 61 146 125 115 132 91 62 132 126 119 137 97 56 137 132 158 160 160 153 131 125 138 140 P132 P132 83 163 172 81 162 175 P138 84 168 189 87 181 204 146 149 147 123 143 146 135 169 101 129 146 139 165 104 129 134 137 139 88 121 114 Manufactured Food Products.... 155 Wheat flour Cane sugar meltings1 Manufactured dairy products . Butter Cheese Canned and dried milk. . Ice c cream Meat p ki packing Pork and lard P k an Beef Veal Lamb and mutton p Revised. Preliminary. 322 155 130 P145 78 154 179 158 164 149 175 149 l >150 131 146 122 • 87 105 Series included in total and group indexes but not available for publication separately. FEDERAL RESERVE BULLETIN INDUSTRIAL PRODUCTION, BY INDUSTRIES—Continued (Adjusted for Seasonal Variation) [Index numbers of the Board of Governors. 1935-39 average = 100] 1946 Industry Dec. Jan. Feb. Mar. Apr. M a y June July Aug. Sept. Oct. Nov. Dec, Jan. Manufactured Food Products—Continued Other manufactured foods Processed fruits and vegetables. Confectionery Other food products Alcoholic Beverages. 159 146 138 165 162 162 137 167 165 163 143 170 169 180 151 169 168 170 156 169 161 149 151 165 155 139 129 163 150 134 108 161 139 101 107 155 146 109 108 162 148 '128 108 160 152 127 113 165 •156 159 138 P137 216 212 168 173 169 213 170 148 144 136 139 193 173 192 174 0 74 355 167 198 452 346 167 11 250 312 153 0 156 265 152 0 67 283 139 0 61 291 139 0 57 318 147 199 448 293 149 55 399 306 181 52 236 365 182 70 218 420 199 83 223 427 197 130 274 343 131 121 123 123 120 128 139 128 150 160 167 154 112 143 95 155 108 85 147 95 95 145 97 93 147 91 91 143 90 92 156 94 93 177 90 91 195 98 106 206 99 111 216 96 110 194 94 87 139 64 104 185 71 135 136 137 141 140 141 142 135 131 143 143. 142 134 P134 132 150 115 132 152 111 95 214 137 129 153 85 119 147 128 76 134 156 113 98 227 139 130 152 87 125 143 127 83 137 157 113 101 227 139 134 157 84 127 148 133 82 136 160 114 103 234 141 132 158 79 126 144 129 80 136 160 108 103 236 140 133 161 78 125 141 132 80 137 160 116 103 236 138 134 160 75 126 139 139 79 131 149 120 93 227 122 128 149 73 122 146 133 80 129 146 118 92 219 120 126 141 74 126 142 135 72 138 152 124 100 223 126 136 165 77 125 142 141 81 139 154 124 101 227 129 137 157 80 133 147 147 79 138 153 114 103 223 131 136 158 79 132 145 140 81 132 137 95 100 195 120 131 143 78 132 149 140 86 130 145 81 134 146 128 86 104 105 105 105 105 106 105 109 115 114 112 118 84 84 83 85 85 85 93 96 96 92 102 273 276 Malt liquor Whiskey Other distilled spirits. Rectified liquors 201 272 268 150 174 126 126 145 166 134 131 Industrial Alcohol from Beverage Plants1. Tobacco Products Cigars Cigarettes Other tobacco products. Paper and Paper Products. Paper and pulp Pulp Groundwood pulp Soda pulp Sulphate pulp Sulphite pulp Paper Paperboard Fine paper Printing paper Tissue and absorbent paper Wrapping paper Newsprint. . ^ Paperboard containers (same as Paperboard). Printing and Publishing. Newsprint consumption Printing paper (same as shown under Paper). 97 212 133 129 145 93 125 156 125 85 Petroleum and Coal Products. Petroleum refining Gasoline Fuel oil.. Lubricating oil Kerosene Other petroleum products1'. Coke By-product coke Beehive coke P267 '240 P!56 155 173 138 140 148 177 136 132 132 151 119 116 129 152 120 122 147 164 133 144 144 P137 Paints •. Rayon Industrial chemicals Explosives and ammunition 1 . . Other chemical products 1 167 163 296 167 162 '335 168 163 367 171 164 387 161 157 284 168 161 406 163 155 421 165 158 400 153 148 332 152 150 224 116 115 145 '148 144 276 154 150 286 P274 312 Chemical Products. Soap 273 269 317 318 319 318 319 318 307 265 239 230 '230 231 P235 141 137 242 396 142 136 244 396 140 136 241 400 139 135 244 402 135 134 241 405 131 134 240 407 134 132 243 412 139 130 243 409 133 122 222 368 136 126 237 386 139 124 '238 371 142 124 142 127 243 380 P147 -•244 -370 P208 P130 P247 P388 Rubber Products. . . 239 247 247 236 233 224 222 218 193 172 191 192 204 Minerals—Total . 137 140 141 142 140 138 144 143 140 134 124 138 133 P139 Fuels 141 145 146 147 145 143 150 148 146 139 126 143 137 132 138 109 146 140 151 96 148 143 150 112 148 142 149 115 150 136 138 131 150 125 145 47 152 148 153 129 151 140 146 117 153 135 144 102 152 142 148 114 138 112 110 120 133 149 159 112 141 142 P 1 5 9 94 P 1 1 5 139 P 1 4 3 111 111 111 111 111 110 109 109 105 106 108 109 108 168 170 170 170 169 167 168 168 162 161 164 163 161 Coal Bituminous coal. . Anthracite Crude petroleum Metals. Metals other than gold and silver.. Iron ore (Copper; Lead; Zinc)1 Gold . Silver r P146 P151 r 1 Revised. P Preliminary. Series included in total and group indexes but not available for publication separately. NOTE.—Series on petroleum refining, usually published in this table, is in process of revision. For description and back figures see BULLETIN for October 1943, pp. 940-984, September 1941, pp. 878-881 and 933-937, and August 1940, pp. 753-771 and 825-882. MARCH 1946 323 INDUSTRIAL PRODUCTION, BY INDUSTRIES (Without Seasonal Adjustment) [Index numbers of the Board of Governors. 1935-39 average = 100] 1945 1944 1946 Industry Dec. Jan. Feb. Mar. Apr. M a y June July Aug. Sept. Oct. Nov. Dec. Jan. 230 230 232 232 229 225 220 211 188 171 164 167 161 P155 248 248 249 249 245 240 234 223 196 177 171 173 167 P159 342 343 345 344 335 323 308 292 ••240 1 9 5 198 197 202 210 206 204 192 187 155 190 215 181 456 188 219 176 526 192 226 180 552 198 234 189 561 188 232 184 573 190 229 182 567 181 214 173 505 182 203 172 421 431 431 436 431 419 405 393 . . . 709 706 695 676 651 610 235 235 242 236 231 218 229 253 257 267 263 186 Smelting and refining (Copper smelting, Lead refining, Zinc smelting; Aluminum; Magnesium; Tin) 1 Fabricating . ... . . . 247 (Copper products; Lead shipments; Zinc shipments; Aluminum products; Magnesium products; T i n consumption) 1 187 191 194 194 Industrial Production—Total Manufactures—Total Durable Manufactures Iron and steel . ... Pig iron .. Steel Open hearth Electric . . . . . Machinery Transportation CQuipment . Automobiles (Aircraft; Railroad . . . . Locomotives; cars; . Ship- Nonferrous Metals and Products Lumber and Products . 166 171 154 296 129 159 139 307 158 178 160 306 164 173 156 294 371 310 230 232 231 230 P221 572 535 405 273 258 250 218 P216 207 188 142 105 120 135 248 219 196 165 189 183 182 171 r 138 150 r 133 '143 P105 94 P 1 0 1 146 144 148 141 1-141 146 146 148 280 284 296 291 272 234 202 162 113 114 115 119 120 121 116 113 104 94 95 87 P100 99 142 97 146 101 144 108 140 112 138 113 138 107 134 108 124 98 115 82 120 81 123 133 P138 156 156 161 165 167 166 168 165 166 167 rl62 161 60 196 163 56 201 175 61 216 183 62 225 186 62 230 71 116 66 118 71 119 190 61 236 175 43 221 82 120 102 115 169 3 227 169 295 102 120 183 204 61 79 226 '247 175 298 179 287 162 260 187 P 1 9 4 217 P 2 1 8 175 307 176 302 177 305 177 306 81 119 177 300 89 115 110 113 192 176 50 4 242 237 122 112 123 r 114 122 »-123 176 182 183 220 218 215 P80 159 P166 108 128 186 29 241 107 P133 171 Wool textiles Carpet wool consumption Apparel wool consumption . ^Voolen and worsted yarn Woolen yarn ^Vo^sted yarn . . . ^^oolen and worsted cloth 171 172 173 167 159 161 158 158 154 P 1 5 4 153 149 150 150 132 134 144 141 146 143 P150 139 145 215 144 152 215 142 150 214 137 143 218 138 142 221 138 144 220 121 123 220 123 123 213 134 138 215 131 128 215 135 133 226 132 125 228 144 117 127 142 147 150 r 149 152 146 151 149 142 146 2 57 215 165 170 157 166 49 225 156 162 148 159 44 238 160 170 146 169 43 249 156 166 142 166 36 233 147 153 139 161 42 243 151 161 137 165 40 234 152 162 137 161 114 125 122 122 121 114 . . . 127 84 73 146 113 113 128 83 68 144 114 128 148 116 132 117 134 115 132 93 68 140 126 91 87 66 162 123 87 63 143 125 150 Food Products Wheat flour Cane sugar meltings1 Manufactured dairy products Butter Cheese Canned and dried milk Ice cream Meat packing Pork and lard Beef Veal Lamb and mutton 324 172 155 . . . 113 143 141 142 122 130 132 122 P94 P88 69 120 140 P98 P116 P149 P178 P 2 0 9 P 2 1 2 P 1 8 5 P 1 5 5 P 1 2 0 PIOO 71 77 89 112 124 109 93 72 62 50 133 151 189 234 254 223 191 164 139 112 157 186 231 272 284 257 214 185 127 105 171 195 150 114 139 132 156 89 146 152 131 182 225 138 130 145 138 234 P84 184 217 149 165 . Leather tanning Cattle hide leathers Calf and kip leathers Goat and kid leathers . . . Sheep and lamb leathers Shoes * Preliminary. 172 150 141 146 215 Textile fabrics Cotton consumption Ravon deliveries 170 152 Nondurable Manufactures Textiles and Products Revised. 165 161 164 142 319 163 51 202 Glass products Plate glass Glass containers Cement Clay products Gypsum and plaster products Abrasive and asbestos products Other stone and clay products1 r 167 159 Stone, Clay, and Glass Products Manufactured 146 97 142 , Leather and products 184 P 1 6 5 163 113 . Lumber Furniture 187 '191 .. 61 111 138 135 129 150 98 126 33 185 124 129 117 129 58 172 136 145 125 136 126 107 103 120 61 142 126 116 132 99 57 135 132 78 79 49 123 109 145 146 150 133 134 132 125 125 131 86 118 132 135 134 98 130 89 193 160 163 156 154 82 186 154 158 149 144 93 191 156 156 156 149 107 118 113 117 110 97 109 108 122 nn 46 145 116 130 86 50 148 120 113 132 46 134 114 110 123 95 52 148 123 157 151 166 153 151 133 128 139 136 134 139 144 139 103 131 129 137 116 132 127 119 97 146 148 108 91 134 95 179 197 134 133 93 173 224 140 r 171 179 164 202 135 104 184 156 158 153 154 89 50 132 108 147 P139 135 P 1 3 9 47 104 105 155 191 125 81 111 Series included in total and group indexes but not available for publication separately. FEDERAL RESERVE BULLETIN INDUSTRIAL PRODUCTION, BY INDUSTRIES—Continued (Without Seasonal Adjustment) [Index numbers of the Board of Governors. 1935-39 average = 100] 1946 1945 1944 Industry Dec. Jan. Feb. Manufactured Food Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. 155 114 139 169 148 105 141 160 149 103 144 161 148 99 140 162 148 104 130 162 145 97 117 162 146 107 96 165 157 174 88 165 154 165 115 158 176 242 139 165 146 191 158 139 148 147 162 214 175 140 0 81 355 137 198 414 346 150 11 228 312 142 0 136 265 160 0 44 283 158 0 36 291 175 0 35 318 184 199 400 293 121 121 118 117 115 128 145 95 142 95 85 147 93 95 136 94 93 137 91 91 133 90 92 156 95 93 186 92 134 136 138 141 141 142 132 150 117 97 212 133 129 145 93 125 151 125 84 132 152 115 95 214 137 129 153 85 119 145 128 76 134 157 118 98 227 139 131 152 87 125 148 127 83 137 158 121 101 227 139 134 157 84 127 148 133 82 136 162 125 103 234 141 132 158 79 126 145 129 82 137 161 117 103 236 140 133 161 78 125 141 132 81 106 99 104 107 108 88 79 83 87 90 268 273 276 272 268 273 269 141 165 132 123 143 171 129 126 150 174 125 132 145 166 132 134 145 167 141 123 149 174 143 122 148 177 136 124 156 175 134 124 155 173 137 135 132 151 119 115 129 152 120 122 167 167 163 162 296 ••335 168 163 367 171 164 387 161 157 284 168 161 406 163 155 421 165 158 400 153 148 332 152 150 224 116 115 145 r 148 144 276 154 150 286 P 2 7 4 313 316 319 • 321 320 318 315 303 261 239 232 '231 232 v233 141 137 242 396 139 133 244 396 139 135 241 400 139 135 244 402 137 131 241 405 135 130 240 407 138 130 243 412 137 129 243 409 132 124 222 368 135 139 140 131 130 125 237 »-238 r 244 386 371 '370 239 247 247 236 233 224 222 218 193 172 r191 192 204 P208 131 134 135 136 140 141 147 145 143 137 125 134 126 P132 141 145 146 147 145 143 150 148 146 139 126 143 137 P146 132 138 109 146 140 151 96 148 143 150 112 148 142 149 115 150 136 138 131 150 125 145 47 152 148 153 129 151 140 146 117 153 135 144 102 152 142 148 114 138 112 110 120 133 149 159 112 141 132 142 94 139 Products—Continued Other manufactured foods Processed fruits and vegetables ... Confectionery Other food products Alcoholic Beverages Malt liquor Whiskey Other distilled spirits Rectified liquors J»146 164 165 142 168 158 117 134 173 108 199 214 201 188 170 55 216 306 183 52 324 365 169 70 566 420 154 83 467 427 157 130 301 343 133 155 169 173 157 104 142 83 170 88 91 204 95 106 220 106 111 225 103 110 198 97 87 128 57 104 185 70 142 134 131 144 143 142 134 P134 137 160 117 103 236 138 134 160 75 126 142 139 80 130 147 107 93 227 122 128 149 73 122 140 133 78 129 144 104 92 219 120 126 141 74 126 142 135 71 138 150 110 100 223 126 136 165 77 125 142 141 81 139 153 115 101 227 129 137 157 80 133 148 147 79 138 153 121 103 223 131 136 158 79 132 145 140 82 131 137 96 100 195 120 131 143 78 132 145 140 84 130 145 81 134 144 128 86 106 105 99 107 110 117 118 114 114 88 84 76 87 94 101 104 96 94 r 171 M66 Industrial Alcohol "from Rpvprape Plants 1 Tobacco Products Cigars Cigarettes Other tobacco products .. Paper and Paper Products Paper and pulp * Pulp Groundwood pulp Soda pulp . Sulphate pulp Sulphite pulp ... Paper Paperboard . .. Fine paper Printing paper Tissue and absorbent paper Wrapping oaoer Newsprint Printing and Publishing NewsDrint consumption Printing paper (same as shown under Paper). . Petroleum and Coal Products Gasoline Fuel oil Lubricating oil Kerosene Coke By-Droduct coke Beehive coke Chemical Products Paints Soap Rayon Industrial chemicals Rubber Products. ... . Minerals—Total Fuels .... Coal Bituminous coal Anthracite Crude petroleum P240 P184 P156 P173 147 P 1 4 4 P 1 3 7 164 133 148 r r 142 127 243 380 68 Metals Metals other than gold and silver Iron ore (Copper; Lead; Zinc)1 Gold Silver 68 68 72 109 131 129 125 124 123 116 80 95 63 98 68 104 80 166 216 207 304 204 301 196 289 192 289 21 53 21 56 21 61 21 54 20 47 23 42 25 46 P159 P115 P143 80 50 23 56 175 245 32 54 111 108 24 62 188 281 29 51 P151 61 94 61 P144 P127 P247 P388 34 52 r Revised. v Preliminary. Series included in total and group indexes but not available for publication separately. NOTE.—Series on petroleum refining, usually published in this table, is in process of revision. For description and back figures, see BULLETIN for October 1943, pp. 940-984, September 1941, pp. 878-881 and 933-937, and August 1940, pp. 753-771 and 825-882. 1 MARCH 1946 325 FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES (Without Seasonal Adjustment) [Index numbers of the Bureau of Labor Statistics, 1939=100] Factory employment Industry Group or Industry Annual 1944 Factory pay rolls 1945 1 1945 Jan. Oct. 1946 Nov. Dec. Jan. Annual 1944 1945 19451 Dec. Jan. Oct. Nov. Dec. Total 169.1 143.4 162.4 121.4 121.6 121.6 122.2 339.1 277.3 336.8 335.2 212.7 212.5 215.5 231.4 181.6 219.4 136.4 136.6 134.4 135.6 474.2 354.1 463.6 461.5 233.8 231.7 230.2 119.9 113.2 117.4 109.5 109.8 111.5 111.6 206.9 202.2 212.8 211.7 192.1 193.8 201.1 Iron and Steel and Products Blast furnaces, steel works, e t c — Steel castings • Tin cans and other tinware Hardware Stoves and heating equipment Steam, hot-water heating appa> ratus Stamped and enameled ware Structural and ornamental metal work 172.0 124.3 249.4 121.2 130.0 136.0 Electrical Machinery Electrical equipment Radios and phonographs Machinery except Electrical Machinery and machine-shop products Engines and turbines Tractors Agricultural, excluding tractors... Machine tools Machine-tool accessories ..... Pumps Refrigerators...' Durable goods... . Nondurable goods. Transportation Equipment, except Autos Aircraft, except aircraft engines. . Aircraft engines Shipbuilding and boatbuilding 148.8 117.9 207.5 125.0 116.7 122.0 '169 '290 186 184 180 •202.2 211.9 174 181 •282 297 186 202 178 195 182 199 350.1 297.1 354 322.4 274.4 332 358 337 230 •200 238 209 413.3 287.6 402 395 187 188 290.1 232.3 273.7 173.4 177.8 179.6 162 249.5 204.4 238 166 161 144 132 292.3 216.0 271 129 520.7 413.1 512. 457.0 364.0 452 552.3 409.2 537 513.2 278.3 290.3 454 '254 265 540 218 238 231.9 197.7 435.6 357.0 429.8 428.9 '273.6 '272.6 425.4 801.8 295.8 324.9 383.1 473.6 695.4 273.6 350.0 590.0 262.1 283.0 320.0 375.7 525.1 216.5 808 294 322 381 452 650 287 121.5 125.4 126.8 115 173 170 117 111 104 '97 111 105 186.2 160.2 183 159.9 138.8 157 133 '110 139 115 145 121 210.7 159.7 2Q6 116 120 123 231.1 376.1 187.9 161 215.6 275.4 326.3 151.9 196.7 303.2 171.2 146.6 182.0 226.5 260.1 126.1 223.8 165.7 165.9 166.2 169.8 223 365 186 160 203 258 305 149 1483.5 .7 1333.6 1800.5 1062.5 1613 2745.9 1535.4 2395 1642.1 962.0 1474 269.7 206.0 369.9 213.8 234.6 226.1 321.4 226 455 216 276 269 182 213 99 161 229 161 135 '142 181 215 112 161 207 165 145 146 184 217 98 405.1 '320 331 532 349.2 '309 301 413 328.7 320.1 3082.6 1810.3 2952.4 3452.7 2041.9 198 308 4845.1 2578.8 4295 246 387 3514.2 2018.7 3446 163 230 158 129 -•158 Automobiles 178.9 Nonferrous Metals and Products Primary smelting and refining.. . . Alloying and rolling, except aluminum Aluminum manufactures 182.3 163.2 182 312.4 242.2 284 Lumber and Timber Basic Products. . . . Sawmills and logging camps Planning and plywood mills 116. 80. 99. Furniture and Lumber Products Furniture Stone, Clay and Glass Products Glass and glassware Cement Brick, tile, and terra cotta Pottery and related products 105.6 99.2 141.8 172.3 '110.2 '123.7 129 '153 137 '163 91.7 421 790 295 322 379 458 649 271 2900.1 3257 4335 313 •200.4 254 222 196 298.4 261 263 '268 380 220 230 '255 271 386 159 '263 367 229 231 '233 270 385 176 277.4 265 368 235 249 245 279 406 144 687.5 '537 444 893 565.7 '513 393 642 566.6 527 346 660 94.1 141 173 105.6 110.6 72.9 76 91.2 97 96.3 67 83 96.8 67 84 98.6 68 86 98.0 103.3 90.4 96 89.8 82 93.6 85 98.1 101.6 90 Textile-Mill and Fiber Products Cotton goods except small wares. . Silk and rayon goods Woolen and worsted manufactures Hosiery Dyeing and finishing textiles 114. 109.8 111.6 109.8 107.4 129.5 122.4 126 110 124 72.9 75.2 69 85 85 75.6 75.3 73 83* 79 123.8 116.9 119 120 117 98.3 92.5 96.0 90.6 91.1 111.0 104.7 109 101 102 75. 71 72.0 74 71 101.1 94.7 98 94 96 66.5 61.8 63 62 64 91.9 85.3 90 80 '81 Apparel and Other Finished Textiles. . . Men's clothing, n.e.c Shirts, collars, and nightwear Women's clothing, n.e.c Millinery 112.1 102.6 107. 96.7 87.1 92 75.3 69.5 70 80.6 74.3 79 78.3 75.1 80 97.2 317.9 324.8 '165.5 185.6 129.7 351.9 296.4 341.3 343.0 '222.0 '234.8 323.2 251.3 264 '222 nil 239 340.9 302.5 348 355 223 560.1 420.0 512 530 '235 '254 186.8 159.4 176.3 '128.1 '134.3 136.9 129 176.1 136.5 143 '125 '126 Leather and Leather Products Leather Boots and shoes 318.9 223.7 460.8 203.1 265.5 256.8 321.2 224 457 219 274 267 '120.6 '110 177 113 98 101 169.8 122 240 125 130 137 241.3 225 212.9 190.4 200.1 199.2 169.1 164. 114 150.2 132.7 139 138 117 137 169.0 156.3 167 167 140 165.6 113 142 329.7 240.0 247 267 180.7 164 190.5 180.6 178.6 165.8 180 194.0 161.9 166.5 151 180 147 111.0 113.0 113 89 88 123 190.2 205.4 112.0 120.8 190.4 186. 195.4 122.4 126.6 184.4 192.1 204 114 118 194 189.0 184.9 177.4 186.1 184 171 202 196 137 135 107 139 148 139 133 117 195 185 187 188 95.3 107 73 99 66 96.6 173.8 204.1 136.4 191.6 105.4 151.4 171.5 204.6 139.4 184.5 101.0 147.0 179.0 176. 212 210 138 142 194 195 103 106 152 157 168.1 199 143 178 105 '137 171.3 200 142 184 109 143 184.1 216 149 200 113 164 101.0 100.6 100.9 101.7 81 81 82 72 72 70 75 75 76 75 74 75 192.8 163.6 131.3 140.3 117 185.3 153.7 127.2 136.3 122.3 195.0 165 128 144 113 183.6 177.7 '137 132 131 136 142 110 135 182.6 141 134 141 120 158.4 164.8 163.2 164.7 161. 147 151 145.3 148.8 146 148.1 146 144 140. 148 91.3 85.0 79.8 89.5 83.5 78.5 90. 84 79 84 78 90.6 86 80 93. 90 82 Food and Kindred Products Slaughtering and meat packing.. . Flour Baking Confectionery Malt liquors '. Canning and preserving 126.1 130.6 115. 112. 116.5 139. 102.£ 120. 110. 120.9 110.0 109.4 144.4 98. 119. 128 119 111 118 137 78 125. 105 126 110 108 151 -125 121.9 110 125 110 111 150 '93 120. 120 125 110 111 148 80 116. Tobacco Manufactures Cigarettes Cigars 89 A 126. 70. 87.2 125. 128 65.5 65 87, 120 69 84. 127 68 r 91. 131 71 198. 165 126 149 131 161. 146 146 175.4 162 157 201.5 216.1 191.0 166.8 191.1 202.8 194.3 206. 185 '212 181 198 225 179 210.6 212 222 181 202 227 167 '171. 208 149 163.3 185 149 200.0 181.4 210. 173.5 187. 217. 195. 164. 158. 192.3 203. 136. 138 207.1 228 199 177 211 205 163 198.0 222 206 168 198 195 154 177. 223 147 166.4 rl81. 211 218 134 159 207. 173 '224 177 188 226 252 ' Revised. 1 Annual indexes for 1945 were computed by the Board of Governors and are preliminary. NOTE.—Indexes for major groups and totals have been adjusted to final 1943 data made available by the Bureau of Employment Security of the Federal Security Agency. Back data and data for industries not here shown are obtainable from the Bureau of Labor Statistics. Underlying figures are for pay roll period ending nearest middle of month and cover wage earners only. Figures for" January 1946 are preli minary. 326 FEDERAL RESERVE BULLETIN FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES—Continued (Without Seasonal Adjustment) [Index numbers of the Bureau of Labor Statistics, 1939=100] Factory employment Industry Group or Industry Annual Factory pay roll 1946 1945 1945 1944 Annual Jan. 116.9 105.8 115.4 112.1 Oct. Nov. Dec. Jan. 1944 19451 Dec. Jan. Oct. Nov. Dec. 118.5 107 119 112 117.5 106 115 115 119.3 108 115 116 122.4 111 118 118 123.7 194.2 178.9 193.2 180.6 197.7 183.3 189.9 184.7 200.5 185 198 185 Paper and Allied Products Paper and pulp Paper goods, n.e.c Paper boxes 119.7 106.5 122.1 115.6 198.3 183 198 182 201.2 187 184 193 204.9 190 186 197 212.2 197 198 203 Printing and Publishing Newspaper periodicals Book and job 99.3 99.9 98.8 102.5 105.9 108.1 108.8 134.8 144.3 141.2 139.8 118 101 103 116.9 126.1 122 92.9 94.2 92 97 160 110 113 116 150.2 161.9 160 105.9 106.8 106 150.7 133 169 158.5 138 178 163.2 142 184 Chemicals and Allied Products Drugs, medicines, and insecticides Rayon and allied products Chemicals, n.e.c Explosives and safety fuses Ammunition, small-arms Cottonseed oil Fertilizers 211.6 256.6 269 '189 261 258.9 184.0 109.1 170.6 1091.4 1410.2 108.8 116.9 193.4 217.8 179.3 179 112.9 112 162.8 166 993.2 1311 1040.1 1431 104.3 130 120.1 123 '153.5 154.3 175 174 '118 115 157 159 417 '338 243 264 119 136 108 111 153.4 177 120 163 277 233 128 118 151.8 126.0 '122.8 '130.7 131.3 122 131 131 126 '100 '103 106 102 133.5 377.9 384.2 r259.6 269 273 272 '186 182 180 261 291 293 -•636 1970 1999 2815.0 2049.0 2633 2915 472 265 217.0 222.1 289 276 250 250.2 275.9 250 269 367.7 338.3 269.2 274.6 174.2 184.1 294.2 284.9 1673.8 1510.9 Products of Petroleum and Coal Petroleum refining Coke and by-products 123.4 126.6 121.0 126.3 105.3 101.7 Rubber Products Rubber tires and inner tubes... . Rubber goods, other 163.8 153.8 164.9 '144.3 '149.2 156.5 159.1 292.7 274.8 308.5 293.0 279.8 319 170.2 167.1 179 163 169 178 252.0 234.2 256 140.7 128.6 138 115 119 124 Miscellaneous Industries L». Instruments, scientific Photographic apparatus 566.4 414.9 167.2 147.0 173.0 154.2 167.8 532 162 137.6 203 130 130.3 133.4 216 202 120 125 140.3 213. 222.5 221.9 206.4 217.1 215 184.2 184.3 182 '•528 488 306 240 221.7 '196.8 '223.4 '218 216 '190 '184 189 '163 323.2 342 261 330.1 292.8 332.2 334.3 1057 1075.0 771.1 1058 278 271.9 243.1 259 r r 237.0 240 202 239.8 240 207 276 195 269 474 437 280 256 221.9 214 193 255.7 257 223 229.1 '236.1 250.0 346 '325 336 189 198 203 For footnotes, see page 326. FACTORY EMPLOYMENT (Adjusted for Seasonal Variation) [Index numbers of the Board of Governors, 193.9 =1001 1944 1946 1945 Group Dec. ' Revised. Feb. Mar. Apr. May June July Aug. Sept. 163.0 219.7 118.3 Total Durable Nondurable Jan. 162.9 219.8 118.0 162.5 219.1 117.8 160.6 215.9 117.1 157.6 210.3 116.1 154.5 204.1 115.4 151.0 196.7 115.0 145.5 187.6 112.3 141.1 180.0 110.3 121.4 '120.6 121.2 138.3 '136.1 136.4 108.1 '108.4 '109.3 v Preliminary. Oct. Nov. Dec. 121.3 P122.7 134.4 P136.0 111.0 J»112.2 NOTE.—Back figures from January 1939 may be obtained from the Division of Research and Statistics. ' HOURS AND EARNINGS OF WAGE EARNERS IN MANUFACTURING [Compiled by the Bureau of Labor Statistics] Industry Group INDUSTRIES Average hourly earnings (cents per hour) Average hours worked per week 1945 1945 1944 Nov. Dec. Aug. Sept. Oct. Nov. Dec. Nov. Dec. Aug. Sept. Oct. All Manufacturing. . . 45.3 45.6 40.7 41.4 '41.6 '41.2 41.6 103.5 104.0 102.4 95.7 98.5 Durable Goods 46.7 47.1 41.1 41.0 '41.6 '41.1 41.5 113.6 114.0 111.3 107.2 46.8 46.3 48.2 47.8 45.5 46.9 43.0 44.4 44.1 47.4 46.6 48.9 48.4 45.7 47.6 42.3 44.3 44.1 41.7 41.2 42.7 41.7 33.5 43.3 40.5 40.6 41.6 41.8 40.8 43.0 38.8 36.5 42.5 40.8 42.3 41.8 '42.0 '41.2 42.6 37.4 '38.3 '43.2 40.6 '42.1 42.1 42.4 41.5 42.9 39.8 36.1 43.4 39.2 42.8 42.1 108.9 104.9 113.4 131.8 128.0 105.8 79.1 83.3 91.0 109.5 105.9 114.6 130.9 127.9 106.9 79 84.4 91.3 110.9 103.8 113.4 129.7 124.5 106.7 81.3 83.5 93.9 108.9 101.4 111.9 126.4 122.4 104.4 81.9 83.3 93.7 '107.8 103.1 111.8 '125.0 '121.9 '104.8 78.4 '84.1 93.2 43.2 43.5 40.3 41.8 '41.5 41.3 41.7 87.7 88.3 90.9 90.3 9Q.9 42.8 37.7 41.6 46.0 45.0 46.6 41.4 45.7 47.1 46.6 45.5 45.7 38.4 33.2 39.3 43.3 39.0 44.0 40.7 43.4 46.9 41.8 41.8 Nov. 106.3 Iron and Steel and Products Electrical Machinery Machinery Except Electrical Transportation Equipment Except Autos. Automobiles Nonferrous Metals and Products Lumber and Timber Basic Products Furniture and Finished Lumber Products. Stone, Clay, and Glass Products Nondurable Goods. Textiles—Mill and Fiber Products Apparel and Other Finished P r o d u c t s . . . . Leather and Manufactures Food and Kindred Products Tobacco Manufactures Paper and Allied Products Printing, Publishing and Allied Industries. Chemicals and Allied Products Products of Petroleum and Coal Rubber Products Miscellaneous Industries ' Revised. MARCH Jan. 42.3 38.0 41.2 45 44.2 40.6 36.2 40.6 44.7 42.3 45.9 42.2 43.4 44.9 43.0 42.2 '42.1 41.1 '43.0 '39.1 '38.4 '43.2 42.2 42.7 42.5 40.4 '36.7 40.9 '44.1 42.0 45.8 41.6 43.3 '42.6 41.4 42.0 40.3 '36.0 39.6 44.4 40.4 45.7 41.7 '42.7 '44.1 40.2 '42.1 40.7 72.2 72.5 36.4 82.4 83.1 40.6 81.9 82.4 45.4 85.9 86.5 39.1 73.5 73.8 45.5 86.3 86.4 41.5 110.4 110.8 42.7 95.6 96.4 43.1 118.6 120.0 40.8 110.7 113.0 42.4 97.5 98.5 77.0 84.6 85.7 88.2 76.5 88.0 114.4 100.3 122.2 111.9 97.5 '99.1 Dec. 99.7 106.9 '108.1 '104.4 '112.4 '124.7 '122.0 105. i78. i '84.4 92. '91.8 76.3 '77.3 '78.6 87.8 87.5 86.4 85.3 85.2 85.7 88.0 89.5 90.8 78.6 79.3 80.7 89.3 '89.7 '90.2 115.8 115.5 ••117.1 99.2 '99.1 »-98.9 121.7 '120.4 '122.0 109.8 '110.0 95.1 95.7 '96.3 nn.o 109.1 105.8 113.4 124.7 122.2 106.3' 81.0 85.2 94.0 92.8 79.5 87.6 88.1 91.6 80.6 91.1 118.6 100.2 123.7 111.2 98.4 NOTE.—Back figures are available from the Bureau of Labor Statistics. 1946 327 ESTIMATED EMPLOYMENT IN NONAGRIGULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION [Thousands of persons] Total Manufacturing 30,353 31,784 35,668 38,447 39,728 38.698 ^36,982 10,078 10,780 12,974 15,051 16,924 16,121 P13.899 1941—September October November December 36,774 36,892 36,991 36,864 1942—January February i March. April May June July August September October November December Year and month fining Construction* Transportation and public utilities Trade Finance, service, and miscellaneous Federal, State, and local government 6,618 6,906 7,378 7,263 7,030 7,044 P7.173 4,160 4,310 4,438 4,447 4,115 4,348 P4.589 3,988 4,136 4,446 5,203 5,890 5,911 *5,887 ' 947 1,753 1,722 2,236 2,078 1,259 P779 P833 2,912 3,013 3,248 3,433 3,619 3,761 P3.822 13,580 13,642 13,752 13,748 1,000 1,003 1,004 1,002 2,327 2,295 2,248 2,115 3,331 3,355 3,369 3,367 7,548 7,537 7,526 7,487 4,454 4,472 4,479 4,493 4,534 4,588 4,613 4,652 37,057 37,195 37,391 37,724 37,981 38,204 38,581 39,042 39,171 39,452 39,597 39,898 13,879 14,041 14,255 14,463 14,649 14,865 15,143 15,442 15,644 15,798 16,048 16,333 996 981 976 982 982 981 982 973 962 954 944 933 2,102 2,090 2,055 2,054 2,048 2,057 2,077 2,101 2,077 2,136 2,095 2,041 3,372 3,357 3,382 3,402 3,419 3,419 3,433 3,448 3,448 3,484 3,503 3,525 7,481 7,414 7,331 7,319 7,280 7,206 7,210 7,222 7,227 7,224 7,132 7,136 4,520 4,491 4,523 4,541 4,521 4,532 4,520 4,518 4,382 4,330 4,255 4,229 4,707 4,821 4,869 4,963 5,082 5,144 5,216 5,338 5,431 5,526 5,620 5,701 1943—January February March April May June July August September October November December 39,934 39,935 40,066 39,891 39,740 39,775 39,876 39,737 39,475 39,486 39,526 39,479 16,506 16,682 16,831 16,858 16,837 16,908 17,059 17,097 17,051 17,108 17,152 16,995 927 924 915 908 893 893 888 878 876 869 859 863 1,899 1,734 1,604 1,476 1,358 1,263 1,164 1,082 1,020 .864 3,540 3,556 3,574 3,588 3,597 3,620 3,634 3,639 3,633 3,671 3,683 3,687 7,133 7,064 7,110 7,006 6,988 7,017 7,061 7,015 7,006 7,006 7,000 6,962 4,146 4,146 4,121 4,110 4,102 4,112 4,127 4,110 4,079 4,078 4,119 4,127 5,783 5,829 5,911 5,945 5,965 5,962 5,943 5,916 5,810 5,818 5,822 5,981 1944—January February March April May. June July August September October November December 39,454 39,352 39,123 38,865 38,749 38,766 38,700 38,654 38,400 38,159 38,044 38,164 16,910 16,819 16,642 16,391 16,203 16,093 16,013 15,943 15,764 15,614 15,529 15,554 862 862 852 848 843 848 833 830 822 812 808 802 830 786 737 719 673 677 653 648 627 609 611 619 3,720 3,780 3,780 3,763 3,768 3,765 3,753 3,762 3,735 3,748 3,771 3,789 7,096 7,043 7,046 6,982 6,997 7,012 7,084 7,059 7,065 7,077 7,052 7,015 4,170 4,173 4,165 4,257 4,363 4,475 4,505 4,514 4,488 4,384 4,359 4,304 5,866 5,889 5,901 5,905 5,902 5,896 5,859 5,898 5,899 5,915 5,914 6,081 1945—January February March April May June July August September October November December 1946—January 38,426. 38,469 38,456 37,963 37,746 37,465 37,231 36,888 35,151 '35,029 »-35,330 35,630 36,221 15,633 15,595 15,445 15,178 14,885 14,534 14,130 13,762 12,022 ••11,893 '11,906 11.876 12,054 805 802 796 765 732 798 784 780 780 714 633 658 691 736 782 828 868 858 883 940 '789 798 814 '984 1,075 1,190 3,797 3,848 3,846 3,811 3,802 3,792 3,801 3,803 3,774 '3,806 '3,870 3,916 3,946 7,210 7,164 7,214 7,004 7,056 7,039 7,117 7,121 7,215 '7,258 '7,312 7,345 7,674 4,394 4,404 4,438 4,466 4,513 4,521 4,558 4,597 4,603 4,745 4,894 4.936 5,016 5,954 5,998 6,026 6,003 5,976 5,953 5,973 5,967 5,874 5,673 5,575 5,684 5,527 1944—July August September October November December 38,731 38,744 38,571 38,360 38,347 38,889 16,013 16,023 15,843 15,692 15,607 15,632 833 834 826 816 812 806 686 700 671 652 629 594 3,809 3,818 3,791 3,767 3,771 3,770 6,942 6,918 6,994 7,148 7,299 7,611 4,618 4,582 4,488 4,340 4,315 4,304 5,830 5,869 5,958 5,945 5,914 6,172 1945—January February March April May J u n e . . . . .* July August September October November December 1946—January 37,952 37,968 38,062 37,791 37,679 37,549 37,273 36,984 35,321 '35,231 '35,631 36,339 35,706 15,555 15,517 15,368 15,102 14,811 14,534 14,130 13,831 12,082 '11,952 '11,966 11,935 11,994 801 798 796 761 728 794 784 784 784 718 582 599 636 699 798 845 911 927 945 3,740 3,771 3,788 3,792 3,802 3,830 3,858 3,860 3,831 '3,825 '3,870 3,896 3,887 7,030 6,985 7,084 6,990 7,021 7,004 6,975 6,979 7,143 '7,331 '7,568 7,969 7,482 4,350 4,360 4,394 4,444 4,513 4,589 4,672 4,666 4,603 4,698 4,845 4,936 4,966 5,894 5,938 5,996 6,003 6,006 5,953 5,943 5,937 5,933 5,701 5,575 5,769 5,472 1939 1940 1941 1942 1943 1944 1945 845 916 970 891 835 679 SEASONALLY ADJUSTED 936 891 UNADJUSTED , '793 802 810 1,006 '1,014 1,032 1,095 * Includes Contract Construction and Federal Force Account Construction. ' Revised. P Preliminary NOTE.—Unadjusted data compiled by Bureau of Labor Statistics. Estimates include all full- and part-time wage and salary workers in nonagricultural establishments employed during the pay period ending nearest the 15th of the month. Proprietors, self-employed persons, domestic servants, and personnel of the armed forces are excluded. January 1946 figures are preliminary. For back seasonally adjusted estimates see BULLETIN for June 1944, p. 600. Back unajusted data are available from the Bureau of Labor Statistics. 328 FEDERAL RESERVE BULLETIN CONSTRUCTION CONTRACTS AWARDED, BY TYPE OF CONSTRUCTION [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars] Nonresidential building Residential building Total Month Factories 1944 Year 1944 1945 1944 1945 159.2 137.2 176.4 179.3 144.2 163.9 190.5 169 3 175.7 144.8 164.9 188.5 January February March April May June July August September Qctober November December 1945 140.9 147.0 328.9 395.8 242.5 227.3 257.7 263 6 278.3 316.6 370 1 330.7 41.0 24.9 35 2 37.8 34.5 30.6 25.8 23 3 24.5 23.8 23 3 23.9 19 5 19.3 26 9 42.7 47.2 41 8 46.3 42 7 42.6 59.9 88 4 86.1 34.0 29.9 48.7 33.0 27.1 24.4 38.3 40.0 49.0 37.7 52.9 57.6 45.2 66.6 160.4 174.5 43.4 25.5 51.5 75.5 98.3 85.4 107.9 92.6 348.4 563.5 Commercial 1,994.0 3,299.3 1944 1945 1944 1945 7 5 8 7 8.5 1-0.2 10 0 4 4 12.3 5.4 9.5 3.8 18 8 10 5 19.8 10.1 6 4 25 5 45 5 7.6 60.8 3.5 62 8 5 3 65.5 3.8 4.1 4.5 7.4 6.1 5.8 8.7 5.6 7.9 6.4 7.7 7.1 9.5 80.8 Other 1945 4 9 3.0 4 6 4.3 5.1 10 5 13.4 10 4 10 2 18.6 7 0 8.2 21 1 23.1 19 5 25.0 17.1 18 9 30.2 22 4 24 2 20.0 28 3 27.1 23 9 17.6 36 3 49.9 29.4 35 6 36.9 32 0 27 0 30.8 30 0 27.3 50 3 55.1 61 3 72.0 55.8 70 7 80.5 69 4 64 1 52.2 48 0 66.6 39 8 32.0 90 6 111.9 107.9 95.0 89.9 77.5 54.6 61.1 74.0 51.0 69.2 100.2 276.7 376.8 746.1 885.4 1945 1944 472.7 1,027.0 Educational Public works and public utilities 1944 346 A Negative because of revision of a prior month's entry. CONSTRUCTION CONTRACTS AWARDED, BY OWNERSHIP [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars] Total Public ownership Private ownership 1944 1945 1946 1946 1944 1945 1946 1944 1945 1946 Month January.... February... March April 159 137 176 179 May 144 June 164 July 191 August 169 September.. 176 October 145 November. . 165 December. . 188 Year CONSTRUCTION CONTRACTS AWARDED, BY DISTRICT [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in thousands of dollars] 141 147 329 396 243 227 258 264 278 317 370 331 1,994 3,299 358 122 109 133 133 98 122 148 125 127 102 103 114 75 74 221 309 148 82 108 67 43 61 61 62 37 28 43 46 46 42 42 44 49 43 62 74 47 1,435 1,311 559 66 73 107 87 95 146 149 196 235 256 309 269 311 Federal Reserve district 1945 Jan. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago.... St. Louis Minneapolis Kansas City Dallas Dec. Jan. 18 059 54,330 19,587 39 675 36,565 30 818 70,156 21,635 13,660 18,929 34,087 14 889 43,388 13,452 49,626 33,717 30,189 65,384 30,211 14,568 12,413 22,848 5.821 10,425 6,731 9,623 22,316 28,550 19,149 8,792 2,698 11,628 15,216 357,501 330,685 140,949 . . . Total (11 districts) 1,988 NOTE.—Data for most recent month preliminary. LOANS INSURED BY FEDERAL HOUSING ADMINISTRATION [In millions of dollars] Title I Loans Year or month Total Property improvement Small home construction Mortgages on 1- to 4- Rental War and family housing houses group (Title (Title housing VI) (Title ID ID 94 309 424 473 669 736 877 691 243 216 219 1935 1936 . 1937 1938 1939 1940 1941 1942 1943 . . . 1944 1945 320 557 495 694 954 1,026 1,186 1,137 942 886 684 224 246 60 160 208 251 262 141 96 125 189. 1945—Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 67 68 60 53 62 56 52 45 44 62 60 55 8 19 13 10 14 13 12 12 11 26 28 23 *' * * * * * 19 14 17 15 22 19 19 18 16 19 21 20 1946—Jan 56 17 * 27 13 25 26 21 15 1 * * * 2 2 11 48 51 13 13 6 * 7 3 * * * 2 * 1 1946 End of month Total Savings Com- Mutual and mersavloan cial ings banks banks associations Insur- Federal Other' ance com- agenpanies cies1 13 284 601 537 272 39 34 30 28 26 24 21 15 14 17 11 11 12 1936—Dec. 1937—Dec. 1938—Dec. 771 1,199 430 634 27 38 110 149 118 212 1939—June Dec •Less than $500,000. NOTE.—Figures represent gross insurance written during the period and do not take account of principal repayments on previously insured loans. Figures include some reinsured mortgages, which are shown in the month in which they were reported by FHA. Reinsured mortgages on rental and group housing (Title II) are not necessarily shown in the month in which reinsurance took place. MARCH INSURED FHA HOME MORTGAGES (TITLE II) HELD IN PORTFOLIO, BY CLASS OF INSTITUTION [In millions of dollars] 1,478 1,793 759 902 50 71 167192* 1940—Mar June Sept Dec 1,949 2,075 2,232 2,409 971 1,026 1,093 1,162 90 100 111 130 1941—Mar June Sept Dec. 2,598 2,755 2,942 3,107 1,246 1,318 1,400 1,465 1942—Mar June Dec 3,307 3,491 3,620 1943—June Dec. 365 228 8 56 41 5 27 53 90 271 342 32 77 137 153 94 133 201 208 216 224 392 432 480 542 171 182 190 201 124 127 141 150 146 157 171 186 230 237 246 254 606 668 722 789 210 220 225 234 160 154 178 179 1,549 1,623 1,669 201 219 236 856 264 940 272 276 1,032 237 243 245 200 195 163 3,700 3,626 1,700 1,705 252 256 284 1,071 292 1,134 235 79 158 159 1944—June Dec. 3,554 3,399 1,669 1,590 258 260 284 1,119 269 1,072 73 68 150 140 1945—June Dec 3,324 3,156 1,570 1,506 265 263 264 1,047 253 1,000 43 13 134 122 x The RFC Mortgage Company, the Federal National Mortgage Association, the Federal Deposit Insurance Corporation, and the United States Housing Corporation. 'Including mortgage companies, finance companies, industrial banks, endowed institutions, private and State benefit funds, etc. NOTE.—Figures represent gross amount of mortgages held, excluding terminated mortgages and cases in transit to or being audited at the Federal Housing Administration. 329 MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports 1 Merchandise imports2 Excess of exports Month 1941 1942 1943 1944 1945 1941 1942 1943 1944 1941 1945 1942 1943 1944 1945 January February March 325 303 357 482 483 637 749 728 988 1,124 1,107 1,197 P903 P887 Pl,030 229 234 268 254 254 272 229 234 249 301 314 359 P334 P325 P365 96 69 89 228 230 365 520 494 739 823 793 838 P569 P561 April May June 387 385 330 717 542 650 989 1,092 1,003 1,231 1,455 1,297 Pl,005 Pl,135 P87O 287 297 280 235 191 215 258 281 295 361 386 332 P366 P372 P360 100 88 50 482 351 435 731 811 708 869 1,069 965 P639 P763 July August September.... 365 460 425 659 705 732 1,265 1,280 1,269 1,197 1,191 1,194 P893 P737 278 282 262 213 186 196 302 316 286 294 304 282 P356 P360 P335 87 178 162 446 518 536 963 964 983 903 887 912 P378 P180 October November. . . . December 666 492 653 803 788 883 1,238 1,073 1,288 1,144 1,187 939 P455 P639 304 281 344 200 168 358 329 311 281 329 323 336 P344 P322 P736 P301 362 211 309 603 620 525 909 762 1,006 815 863 603 Pill ' P317 P434 Jan.-December 5,147 ;,080 12,963 14,261 P9,805 3,345 2,742 3,372 3,921 P4,140 1,802 5,338 9,591 10,341 P514 P665 P537 P5,665 p Preliminary. 1 including Dotn domestic and roreign mercnandise. Including both foreign merchandise. General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses. Source.—Department of Commerce. Back figures.—See BULLETIN for April 1940, p. 347; February 1937, p. 152; July 1933, p. 431; and January 1931, p. 18. o f"**~«.~— i i -.— j,— i i i: —. i - I- J J i-_ FREIGHT CARLOADINGS, BY CLASSES [Index numbers: 1935-39 average=100] ForTotal Coal Coke Grain Live- est stock prod- Ore ucts REVENUES, EXPENSES, AND INCOME OF CLASS I RAILROADS [In millions of dollars] Mis- Mercel- chanlane- dise ous Total railway operating revenues lcl ... Annual 1939 1940 1941 1942 1943 1944 1945 101 109 130 138 137 140 135 98 111 123 135 138 143 134 102 137 168 181 186 185 172 107 101 112 120 146 139 151 96 96 91 104 117 124 124 10~) 114 139 155 141 143 129 110 147 183 206 192 180 169 101 110 136 146 145 147 142 97 96 100 69 63 67 68 SEASONALLY ADJUSTED Annual 1939 1940 1941 1942 1943 1944 1945 . . Net railway operating expenses income Total railway 3,995 4,297 5,347 7,466 9,055 9 437 P8,902 3,406 3,614 4,348 5,982 7,693 8,343 8,052 1,485 1,362 1,093 P850 589 682 998 Net income 93 189 500 902 874 668 P450 1944—November December. 141 137 142 127 181 166 150 134 135 128 138 135 153 133 149 151 68 68 SEASONALLY ADJUSTED 1945—January.., February., March. . . , April May June July August.. . , September October. . . November. December. 144 139 145 141 140 140 139 128 127 118 133 127 141 139 137 126 126 143 136 128 143 109 148 133 176 178 190 180 193 181 193 167 155 113 167 164 128 119 134 160 167 155 157 163 146 158 167 153 120 121 129 124 120 121 121 115 114 123 145 140 142 133 134 133 137 144 140 133 125 109 110 106 161 168 218 204 204 170 171 166 174 134 134 117 157 152 159 153 151 146 146 132 126 125 133 130 66 66 67 71 69 68 67 64 66 69 74 74 1944—October November.. December.. 791 788 780 709 697 711 82 91 69 46 57 33 1945—January.. . . February.. . March April 1946—January.. «3 148 127 152 126 122 118 134 78 766 781 796 799 796 831 791 705 691 657 668 628 673 678 698 704 704 725 696 648 655 620 608 93 103 98 96 92 106 95 57 36 37 61 60 68 63 62 57 71 61 22 4 5 P27 P674 p-36 1944—October November.. December.. 818 780 757 720 689 687 98 91 70 60 64 41 1945—January.. . . February.. . March April 751 713 813 779 823 820 796 755 679 697 661 614 678 640 713 687 723 724 699 669 635 643 600 651 73 73 100 92 100 96 97 87 44 54 61 -37 39 37 63 56 65 66 63 51 9 20 UNADJUSTED 1944—November, December. 144 128 142 127 181 175 147 126 170 124 135 120 138 41 155 142 70 65 1945—January. . , February. , March. . . , April , May June July August... , September October. . November, December. 132 130 136 139 142 145 143 132 137 128 136 119 141 139 137 126 126 143 136 128 143 109 148 133 185 188 192 176 191 178 187 160 154 111 167 172 128 117 124 141 147 158 188 176 163 158 164 144 115 97 102 111 108 99 97 109 150 189 183 135 128 128 134 133 143 149 140 140 135 115 108 94 40 '144 42 142 63 151 203 151 268 152 263 150 273 148 249 133 261 136 215 136 114 139 36 123 63 64 68 71 69 68 67 65 69 72 75 71 1946—January.. 123 148 133 152 120 109 29 123 74 r Revised. NOTE.—For description and back data, see pp. 529-533 of the BULLETIN for June 1941. Based on daily average loadings. Basic data compiled by Association of American Railroads. Total index compiled by combining indexes for classes with weights derived from revenue data of the Interstate Commerce Commission. 330 May June July August. . . . September. October.... November.. December. UNADJUSTED May June July August. . . . September. October... . November.. December. . P34 P Preliminary. NOTE.—Descriptive material and back figures may be obtained from the Division of Research and Statistics. Basic data compiled by the Interstate Commerce Commission. Annual figures include revisions not available monthly. FEDERAL RESERVE BULLETIN DEPARTMENT STORE STATISTICS [Based on value figures] MONTHLY INDEXES OF SALES [1935-39 average = 100] Federal Reserve district Year and month United States Boston Philadelphia Cleveland Richmond Atlanta Chicago St. Louis 83 99 92 94 105 105 110 113 114 115 117 108 97 75 73 83 88 100 107 99 106 114 133 150 168 186 207 95 110 108 112 119 121 123 127 128 126 128 123 114 90 84 90 92 100 104 100 104 108 126 140 148 162 175 84 100 96 99 106 110 116 120 123 124 129 126 116 91 86 91 93 101 106 99 101 106 119 128 135 150 169 106 126 120 122 135 134 135 138 133 127 128 118 105 83 80 88 91 102 107 96 104 111 129 143 151 168 184 84 106 94 95 108 106 109 110 110 110 116 105 93 68 69 81 86 101 111 96 106 114 138 153 167 182 201 73 81 78 75 85 87 92 96 95 95 96 92 86 68 68 81 87 98 105 101 109 120 144 170 194 214 235 88 105 90 85 94 91 95 99 100 100 98 91 79 60 62 78 84 97 105 103 113 123 145 162 204 244 275 80 83 98 96 102 106 108 114 116 101 88 67 68 79 86 100 109 98 107 116 135 149 161 176 193 105 103 115 114 120 121 119 120 122 110 97 76 72 83 85 97 106 102 111 119 143 158 179 200 227 113 126 117 112 120 119 124 119 117 110 110 105 98 79 76 85 90 99 104 101 106 109 122 133 149 165 186 183 '174 183 176 189 187 187 193 '204 196 197 211 220 '182 188 202 218 200 '200 '212 '225 216 155 157 164 155 160 158 162 165 168 174 152 141 150 144 150 152 149 151 161 157 173 161 168 158 169 157 170 167 182 170 183 166 181 166 191 182 180 190 204 190 213 200 212 208 212 215 219 228 231 221 228 221 233 237 262 243 247 260 271 258 168 166 170 165 178 180 181 185 189 190 '193 '185 '201 189 '198 207 '210 '207 '213 '218 167 166 193 157 160 177 183 166 167 177 183 188 149 165 189 150 156 169 177 165 161 172 182 181 173 189 204 162 170 185 198 175 175 184 202 184 186 204 222 174 179 197 220 189 187 209 220 211 r233 238 250 210 210 235 252 235 225 248 250 237 268 274 274 234 243 277 300 274 268 292 298 288 184 202 207 168 170 184 197 189 193 199 208 206 226 186 185 205 214 267 307 170 172 178 163 142 157 196 209 248 319 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 New York 144 161 162 144 110 118 170 184 207 300 139 137 142 133 100 111 158 173 206 269 162 158 161 142 116 123 173 189 229 303 167 172 179 157 140 159 191 204 244 304 203 194 211 183 152 177 232 249 293 372 156 171 212 174 183 186 163 168 209 230 274 351 132 130 187 156 158 165 127 125 176 196 225 322 123 137 176 142 148 155 118 120 171 196 235 307 133 149 200 152 163 167 137 136 178 208 255 327 145 163 214 171 177 187 161 165 199 224 264 338 179 147 154 158 167 Minne- Kansas Dallas City apolis San Francisco 119 124 123 125 119 117 111 96 74 73 85 89 99 107 100 105 110 127 149 184 205 230 93 112 92 86 91 94 98 103 101 103 104 96 81 61 62 76 80 97 105 106 112 117 138 157 212 246 277 67 80 75 78 91 93 99 106 107 110 112 104 94 71 68 77 86 100 106 100 109 117 139 169 200 221 244 159 157 160 151 165 173 162 158 189 175 194 181 192 192 212 203 200 214 244 208 244 237 242 239 256 253 252 250 258 256 219 201 214 210 222 222 216 229 253 234 211 '222 '233 '202 '213 220 '237 225 '232 '238 '240 239 181 208 205 157 162 172 187 186 185 180 219 193 241 246 240 199 203 218 243 214 217 241 265 225 '260 271 269 256 264 268 300 272 278 289 288 287 247 257 249 219 234 233 255 231 232 245 273 256 209 232 211 270 306 263 221 228 228 199 197 216 257 273 317 417 159 166 170 160 139 151 185 197 231 295 185 183 197 170 154 178 212 221 268 333 141 159 162 151 130 153 184 179 218 269 182 183 194 177 168 191 220 225 263 338 227 228 228 203 194 220 265 275 314 417 198 192 200 193 184 202 225 239 297 373 '175 191 250 193 209 207 181 194 239 271 318 398 214 236 282 227 238 233 225 244 279 307 348 466 147 162 200 165 170 178 154 158 197 213 254 320 173 187 233 192 209 198 185 194 234 255 303 365 136 144 186 156 164 171 147 165 210 204 252 297 178 194 233 195 205 200 192 201 239 253 286 367 211 239 269 228 248 228 228 237 292 318 352 467 197 217 232 205 219 215 211 210 243 254 321 407 200 246 167 191 158 200 248 211 SEASONALLY ADJUSTED 1944—March April May June July August September October November December , 1945—January February March April May June , July August September. . . . October November. December 1946—January UNADJUSTED 1944—March April May June July August September.... October November.... December 1945—January February March April May June July August September October November December , 1946—January ' Revised. NOTE.—For description and monthly indexes for back years, see pp. 542-561 of BULLETIN for June 1944. MARCH 1946 331 DEPARTMENT STORE STATISTICS—Continued SALES, STOCKS, AND OUTSTANDING ORDERS [As reported by 296 department stores in various Federal Reserve districts] WEEKLY INDEX OF SALES [Weeks ending on dates shown. 1935-39 average 100] Without seasonal adjustment Amount ( I n millions of do' lars) Sales (total Stocks (end of month) for month) 1939 1940 1941 1942 1943 1944 1945 Outstanding orders (end of month) Index of stocks (1935-39 average = 100) Seasonally adjusted Aug. Unadjusted Sept. average... average... average... average... average... average... average... 128 136 156 179 204 227 255 344 353 419 599 508 534 564 108 194 263 530 560 728 1944—June.... July.... Aug Sept Oct Nov Dec 1945—j a n . Feb Mar Apr May.... 198 162 198 234 257 300 385 523 517 574 583 607 580 451 592 631 579 561 577 613 P618 157 165 172 161 156 144 138 150 148 165 167 174 167 130 198 198 284 209 231 236 191 213 243 298 334 429 463 494 524 566 591 601 592 625 620 624 602 462 768 819 772 725 671 697 722 671 652 700 777 764 148 149 148 156 165 181 189 187 171 161 150 141 133 142 151 162 170 172 170 179 178 179 173 133 P224 P487 P897 June July.... Aug Sept Oct Nov Dec 1946—Jan July 99 101 120 172 146 153 162 P!56 P140 Oct. Nov. 1942 11. . . .112 18. . . .105 25. . . .103 1. . . .105 8. . . .122 15. . . .125 22. . . .126 29. . . .142 5. . . .165 12. . . .140 19. . . .152 26. . . .172 3 . . . .183 10. . . .171 17. . . .166 24. . . .172 3 1 . . . .168 7 14. 21. 28. Dec. 5. 12. 19. 26. July Aug. Sept. Oct. 182 Nov. . . .182 . . .182 . . .176 . . .250 Dec. . . .295 . . .333 . . .222 2 9. 16. 23. 30. Feb. 6. 13. 20. 27. Mar, 6 13. 20. 27. 1944 8. . . .116 15. . . .145 22. . . .138 29. . . .132 Aug. 5. . . .137 12. . . .148 19. . . .149 26. . . .171 Sept. 2. . . .194 9. . . .177 16. . . .196 23. . . .193 30. . . .196 Oct. 7. . . .218 14. . . .221 21. . . .209 28. . . .207 215 Nov. 4 11. . . .231 18. . . .252 25. . . .236 Dec. 2. . . .304 9. . . .365 16. . . .377 23. . . .369 30. . . .123 July July Aug. Sept. Oct. Nov. Dec. 1944 1943 T 1943 10. . . .113 17. . . .126 24. . . .124 3 1 . . . .118 7. . . .131 14. . . .131 21. . . .146 28. . . .145 4. . . .169 11. . . .156 18. . . .179 25. . . .176 2. . . .175 9. . . .188 16. . . .189 23. . . .194 30. . . .187 6 .202 13. . . .211 20. . . .223 27. . . .201 4. . . .269 11. . . .297 18. . . .321 25. . . .274 117 Jan . . .146 . . .139 . . .125 . . .126 . . .143 Feb. . . .178 . . .155 . . . 162 .150 Mar. . . .144 . . .147 . . .155 1 8. 15. 22. 29. 5. 12. 19. 26 4. 11. 18. 25. 1945 110 Jan 6 145 Jan. 13. . . .166 . . .143 . . .146 20. . . .160 . . .144 27. . . .161 . . .137 Feb. 3 . . . .163 Feb. . . .146 10. . . .172 . . .142 17. . . .176 . . .142 24. . . .177 3 146 M a r 182 Mar. .204 10 . . 153 17. . . .214 . . .160 . . .172 24. . . .226 . . .182 3 1 . . . .230 1945 14. . 21. . 28. . 4. . 11. . 18. . 25. . 1. . 8. . 15. . 22. . 29. . 6. . 13. . 20. . 27. . 3. . 10. . 17. . 24. . 1. . 8. . 15. . 22. . 29. . . .167 ..157 . .153 . .167 . .176 . .124 . .182 ..194 . .177 . .213 . .220 . .209 . .242 . .245 . .237 . .233 . .236 . .261 . .275 . .258 . .326 . .401 ..433 . .421 ..158 1946 5. . 135 12. . . .188 19. . . .191 26. . . '189 2. . . .196 9. . . .215 16.. ..209 23. . . .212 2 9 16. . 23. . 30. . r Preliminary. Revised. Back figures.—Division of Research and Statistics. Revised. NOTE.—Revised series. For description and back figures see pp 874-875 of BULLETIN for September 1944. SALES BY FEDERAL RESERVE DISTRICTS AND BY CITIES [Percentage change from corresponding period of preceding year] Jan. Dec. Year United States. Boston New Haven. . . Portland Boston Springfield . . . . Worcester Providence.. . [ Jan. Dec. Year 1946 1945 1945 1946 1945 1945 +15 + 10 + 11 Clev eland-cont. Youngstown.... +12 +8 +9 Erie + 5 +2 + 3 Pittsburgh + 11 +3 + 5 Wheeling + 13 + 10 +2 + 1 +8 +8 + 12 + 7 +25 + 14 New York... Bridgeport +9 + 6 Newark +26 + 13 A l b a n y . . . . . . . +60 + 19 Binghamton... +26 + 17 +32 + 8 Buffalo Elmira \ + 15 + 11 Niagara Falls.. +6 + 10 New York City +24 + 16 Poughkeepsie.. +31 + 10 +21 + 18 Rochester Schenectady. +9 + 6 Syracuse +38 + 15 Utica + 12 + 7 + 12 + 14 +21 + 14 +20 + 16 + 17 + 12 + 11 Richmond +14 +7 +5 + 13 Washington + 11 + 9 + 9 Baltimore + 13 + 5 Raleigh, N. C... + 13 Winston-Salem.. +8 + 7 +7 +7 + 4 Charleston, S. C. -6 -6 + 14 Greenville, S. C. + 8 + 1 +23 Lynchburg + 11 + 8 -7 -5 + 15 Norfolk +18 + 17 +8 Richmond +9 Charleston, + 17 + 14 + 8 W. Va +28 + 12 + 14 Clarksburg + 14 H u n t i n g t o n . . . . +19 + 13 + 12 +15 + 12 +8 Atlanta + 14 Birmingham.... + 11 + 8 -6 -4 + 4 Mobile Montgomery. . . 0 + 14 + 10 Jacksonville.... +10 +5 +24 +20 + 16 Miami +35 +5 +7 Orlando „ +23 + 13 +9 Tampa +22 + 19 +5 Atlanta +22 + 15 + 18 Augusta + 2 -2 + 10 Columbus Macon + 10 Baton Rouge. . . + 14 + 14 +33 + 19 +9 New Orleans. . . +11 +13 +2 Bristol, T e n n . . . + 15 +25 + 14 Jackson + 10 + 16 +8 Chattanooga. . . +22 + 11 - 5 +2 + 15 Knoxville + 4 Nashville + 19 + 18 Philadelphia. . +20 +8 Trenton.. +31 + 14 Lancaster. . . . + 17 +5 Philadelphia... + 14 +7 Reading. +25 +5 Wilkes-Barre ' +27 + 16 York...: + 17 +4 Cleveland.... +15 + 11 Akron + 10 +5 Canton + 12 -2 Cincinnati.... + 15 + 16 Cleveland.... + 14 +7 Columbus... . + 16 + 15 Springfield. . . +7 +2 Toledo + 4 +8 +8 " Revised. Data nut avaiiauie. 332 Chicago Chicago Peoria Fort Wayne.. . Indianapolis... Terre Haute... Des Moines. . . +9 Detroit + 8 Flint +6 Grand Rapids. + 10 Lansing Milwaukee... . -2 + 13 Green Bay Madison + 15 -1 St, Louis + 15 Fort Smith Little Rock + 18 Quincy +12 Evansville + 16 Louisville r+12 East St. Louis. St. Louis +9 St. Louis Area. -3 Springfield.... + 19 Memphis + 10 + 17 Minneapolis. . +9 Minneapolis. . . + 11 St. Paul + 19 Duluth-Superior +20 City... +5 Kansas +9 Denver Pueblo + 17 Hutchinson... . +8 Topeka + 16 Wichita + 14 Joplin + 14 Kansas City. . . +8 St. Joseph + 17 Omaha + 15 + 6 + 12 + 14 + 10 Jan. Dec. Year 1945 1946 1945 +14 +9 Jan. Dec. Year 1946 1945 1945 -{-10 Kansas City— + 18 + 9 + 11 cont. + 16 r+12 '+13 Oklahoma City. . + 6 * + 15 + 15 Tulsa +7 + 12 + 8 + 12 Dallas +18 +20 +16 +31 Shreveport + 13 + 12 +17 Corpus Christi. . + 8 +4 +2 +8 r_|_ +5 Dallas +23 -9 0 + 14 + 11 + 12 +2 + 15 + 13 * '+7 ' +18 +10 +6 +10 + 15 + 6 +1 +20 +12 +7 + 14 i + 14 + 13 * +1 + 9 + 10 +9 + 10 +22 + 19 + 13 '+8 +17 r+11 + 19 + 15 + 16 + 13 0 +5 +12 + 18 + 12 * +8 +9 + 7 + 1 +9 + 7 +2 * +8 + 13 +7 0 + 17 + 16 + 13 7 Fort Worth + 17 Houston +7 San A n t o n i o . . . . + 14 San Francisco. . + 16 Phoenix + 11 Tucson + 13 Bakersfield + 12 Fresno + 13 Long Beach + 14 Los Angeles + 1 Oakland and + 12 Berkeley +5 Riverside and + 14 San Bernardino. + 14 Sacramento + 19 San Diego + 12 San Francisco.. . San Jose +13 Santa Rosa + 16 Stockton + 16 Vallejo and +5 Napa + 12 Boise and Nampa + 15 Portland + 10 Salt Lake City. . + 14 Bellingham +14 + 3 Everett + 11 Seattle + 12 Spokane + 10 Tacoma + 11 Yakima +9 +8 +v + 12 + 14 r\12 • + 12 + 11 ++6 13 ++v + 11 14 + 15 + 19 ++v +23 12 + 7 +24 + 24 +9 +10 •+11 + 13 '+15 + 16 +23 '+18 + 11 13 + 17 '+14 + 13 + 19 '+14 + 12 + +8 + 10 + 13 + 12 + 15 +8 +5 +7 '+8 + 15 '+15 - J r+l r +S '+9 '+9 '+2 + 6 ' + 8 + 12 10 + 15 + 15 + 15 + 9 + 16 + + 13 -5 +6 0 -7 +7 +7 + 4 + 13 +5 + 11 - 2 10 + 17 + 12 ++9 +20 +6 + 10 +20 +8 -1 +8 + 11 +8 +5 +8 + 13 + 14 +1 '+4 +7 +3 FEDERAL RESERVE BULLETIN DEPARTMENT STORE STATISTICS—Continued SALES AND STOCKS, BY MAJOR DEPARTMENTS Per cent change from a year ago (value) Number of stores reporting Department Ratio of stocks to sales Stocks (end of month) Sales during period December Dec. 1945 GRAND TOTAL—entire store MAIN STORE—total Women's apparel and accessories Coats and suits Dresses Blouses, skirts, sportswear, etc Juniors' and girls' wear Infants' wear Aprons, housedresses, uniforms Underwear, slips, negligees Corsets, brassieres. Hosiery (women's and children's) Gloves (women's and children's) Shoes (women's and children's) Furs Neckwear and scarfs Handkerchiefs Millinery Handbags and small leather goods Men's and boys' wear Men's clothing Men's furnishings, hats, caps Boys' clothing and furnishings Men's and boys' shoes and slippers Home furnishings Furniture, beds, mattresses, springs Domestic floor coverings Draperies, curtains, upholstery Major household appliances Domestics, blankets, linens, etc Lamps and shades China and glassware Housewares Piece goods Cotton wash goods Small wares Lace, trimmings, embroideries, ribbons Notions Toilet articles, drug sundries, and prescriptions Jewelry and silverware Art needlework Stationery, books, and magazines Miscellaneous Luggage BASEMENT S T O R E - t o t a l Women's apparel and accessories Men's and boys' clothing and furnishings Home furnishings Piece goods Shoes 325 330 310 302 306 281 322 329 337 321 238 266 240 275 163 298 Dec. 1945 1945 1944 +11 +11 +2 348 348 345 Year 1945 +12 + 12 + 13 + 14 + 19 +20 + 18 +9 + 11 +8 +21 0 + 12 + 18 +7 + 10 +8 + 13 + 10 +14 + 18 + 14 +9 +24 + 13 + 19 -4 +6 + 107 +2 +23 + 14 +34 +2 +2 +3 1.1 1.2 1.1 1.2 1.1 1.9 0.9 1.1 1.2 1.4 1.1 0.4 2.0 0.4 0.6 1.6 1.0 1.9 1.1 1.1 1.1 1.2 1.2 0.4 1.7 0.6 0.7 2.1 1.9 1.0 0.9 0.8 1.1 2.1 0.7 1.4 1.9 2.2 3.0 2.4 2 2 1.6 1.6 1.7 1.6 2.7 _2 +5 + 14 + 11 +4 +8 +7 -31 +7 + 16 +3 + 18 +8 +7 + 11 + 12 +7 + 15 +5 -\-33 +24 +19 + 12 +4 317 226 297 276 172 308 229 231 268 179 287 220 214 219 +362 + 10 +27 + 16 +60 282 114 -18 331 120 219 312 295 233 235 + 17 +8 + 16 296 219 208 194 160 123 50 132 +25 +32 + 14 +23 +3 +21 +6 +2 + 14 + 11 +8 +14 -10 + 14 + 18 + 15 +1 -15 +24 -41 -2 -11 +23 +20 +31 + 18 +4 0.8 -36 -64 -31 0.6 0.7 0.4 1.2 1.0 -7 -31 +9 +4 +4 + 12 +58 2.0 2 6 2.3 +26 +22 +26 1.7 1.7 2.2 1.6 1.7 1.2 1.9 2.1 1.2 1.1 2.0 0.9 0.7 0.8 1.2 1.1 0.8 1.7 1.4 1.9 -15 +8 -30 -30 +11 +6 + 15 +6 + 16 +20 +4 + 17 + 14 +23 + 16 +38 +15 +22 +1 +9 -4 + 10 + 14 + 11 + 12 +9 +8 + 13 +5 + 12 + 13 -24 +4 — 23 -1 2.3 2.0 1.2 2.0 2.1 1.2 1.1 1.8 0.8 0.8 0.9 1.2 1.1 1.2 1.8 2.1 2.2 NOTE.—Group totals include sales in departments not shown separately. Figures for basement store are not strictly comparable with those for main store owing chiefly to inclusion in basement of fewer departments and somewhat different types of merchandise. The ratio of stocks to sales is obtained by dividing stocks at the end of the month by sales during the month and hence indicates the number of months' supply on hand at the end of the month in terms of sales for that month. SALES, ACCOUNTS RECEIVABLE, AND COLLECTIONS Percentage of total sales Index numbers, without seasonal adjustment, 1941 average = 100 •Year and month Accounts receivable at end of month Sales during month Cash sales Instalment sales Chargeaccount sales Total Cash Instalment 1944—December 244 324 104 P182 46 128 79 135 64 4 32 1945—January February March April 126 126 178 133 147 149 121 rl36 '154 190 212 270 164 163 230 171 190 194 163 182 203 245 272 357 57 57 73 52 55 52 48 58 63 90 101 108 96 98 141 107 117 117 88 99 118 147 165 204 43 40 40 37 35 34 32 32 33 36 41 48 97 84 96 88 88 88 76 76 85 99 113 144 '80 69 77 65 64 61 57 57 59 71 77 79 rl67 128 120 128 122 121 117 104 103 122 143 148 63 63 63 62 63 63 66 65 63 63 62 64 4 4 3 3 3 3 3 4 4 4 4 4 33 33 34 35 34 34 31 31 33 33 34 32 141 186 60 108 45 108 81 192 63 May June July August September October November December 1946—JanuaryP Charge account Collections during month Instalment Charge account Instalment Charge account 4 33 ^Preliminary. 'Revised. NOTE.—Data based on reports from a smaller group of stores than is included in the monthly index of sales shown on page 331. MARCH 1946 333 CONSUMER CREDIT STATISTICS TOTAL CONSUMER CREDIT. BY MAJOR PARTS [Estimated amounts outstanding. In millions of dollars] Instalment credit End of month or year Total consumer credit 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Total instalment credit Sale credit Loans Total Automobile 1 Singlepayment loans2 Charge accounts Service credit Other ,637 ,839 ,528 ,082 ,905 ,378 ,419 ,771 ,467 ,036 ,008 ,205 ,956 ,526 ,377 ,790 ,666 2,515 2,032 1,595 999 1,122 1,317 1,805 2,436 2,752 2,313 2,792 3,450 3,744 1,491 814 835 P903 1,318 928 637 322 459 576 940 1,289 1,384 970 1,267 1,729 1,942 482 175 200 P227 197 104 958 677 663 741 865 147 368 343 525 721 802 1,009 639 635 P676 652 674 619 516 459 532 802 1,065 1,195 1,271 1,671 2,057 2,237 1,505 1,186 1,248 Pl.514 2,125 ,949 ,402 962 776 875 ,048 .331 ,504 ,442 ,468 ,488 ,601 ,369 ,192 ,220 ,497 1,749 1,611 1,381 1,114 1,081 1,203 1,292 1,419 1,459 1,487 1,544 1,650 1,764 1,513 1,498 1,758 Pl.981 596 573 531 491 467 451 472 520 557 523 533 560 610 648 687 729 5,487 5,330 5,581 5,448 5.494 5,641 5.594 5.588 5,638 5.937 6,278 P6.666 2,013 1,966 1,990 1,988 2,004 2,031 2,038 2,034 2,054 2,133 2,239 P2,417 777 741 731 723 718 719 712 706 717 754 805 P903 192 186 184 184 184 188 192 196 202 210 219 P227 585 555 547 539 534 531 520 510 515 544 586 P676 1,236 1,225 1,259 1,265 1,286 1,312 1,326 1,328 1,337 1,379 1,434 P1,514 1,206 1,188 1,181 1,212 1,258 L.320 1,346 1,359 1,358 1,380 1,441 Pl.497 1,534 1,438 1,669 1,506 1,488 1,544 1,459 1,441 1,470 1,666 1,835 Pi,981 734 738 741 742 744 746 751 754 756 758 763 P771 P6,448 1945 3,167 2,706 2,214 1,515 1,581 1,849 2,607 3,501 3,947 3,584 4,463 5,507 5,981 2,996 2,000 2,083 P2.417 P2.427 P882 P239 P643 Pl,545 P1,533 PI.709 P779 1946 P Preliminary. 1 Includes repair and modernization loans insured by Federal Housing Administration. 2 Noninstalment consumer loans (single-payment loans of commercial banks and pawnbrokers). CONSUMER INSTALMENT LOANS [Estimated amounts outstanding. In millions of dollars] CONSUMER INSTALMENT SALE CREDIT, EXCLUDING AUTOMOBILE CREDIT [Estimated amounts outstanding. In millions of dollars] Department Total, End of excluding stores and month or automailyear mobile order houses 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1945 Feb Mar Apr May June July Aug Sept Oct Nov Dec 1946 Jan Furniture stores Household appliance stores Jewelry stores 1,197 1,104 958 677 663 741 865 1,147 1,368 1,343 1,525 1,721 1,802 1,009 639 635 P676 160 155 138 103 119 146 186 256 314 302 377 439 466 252 172 183 P198 583 539 454 313 299 314 336 406 469 485 536 599 619 391 271 269 P283 265 222 185 121 119 131 171 255 307 266 273 302 313 130 29 13 P14 56 47 45 30 29 35 40 56 68 70 93 110 120 77 66 70 585 555 547 539 534 531 520 510 515 544 586 P676 171 162 162 158 154 150 145 142 144 156 173 P198 249 240 238 237 238 237 235 232 235 247 262 P283 12 12 11 11 10 11 11 11 11 11 12 P14 61 54 50 48 48 49 47 45 44 44 47 P643 P190 P272 P14 P Preliminary. 334 P74 P66 All other retail stores 133 141 136 110 97 115 132 174 210 220 246 271 284 159 101 100 P107 92 87 86 85 84 84 82 80 81 86 92 P107 P101 End of month or year 1929 1930 1931 1932 1933.... 1934 1935 1936 1937 1938 1939.... 1940 1941 1942 1943 1944 1945 1945 Jan Feb Total 652 674 619 516 459 532 802 1,065 1,195 1,271 1,671 2,057 2,237 1,505 1,186 L,248 p 1,514 L.236 L.225 Mar L.259 Apr L.265 May. . . . L.286 June.... 1,312 July 1,326 Aug 1,328 Sept 1,337 Oct 1,379 Nov 1,434 P1,514 Dec 1946 Pl,545 Jan Insured Industrial Com- Small Miscel- repair loan banking Credit laneous and mercial combanks 1 panies com- 2 unions lenders modernization panies loans1 43 45 39 31 29 44 88 161 258 312 523 692 784 426 312 358 263 287 289 257 232 246 267 301 350 346 435 505 535 424 372 388 219 218 184 143 121 125 156 191 221 230 257 288 298 202 165 175 32 31 29 27 27 32 44 66 93 112 147 189 217 147 123 119 P471 P445 P200 P124 359 357 374 377 388 400 406 406 413 428 448 378 372 381 381 384 389 391 389 387 395 409 172 168 171 172 177 181 182 182 182 186 193 116 114 116 116 116 118 119 118 116 117 120 P471 P44S P200 P492 P446 P203 95 93 78 58 50 60 79 102 125 117 96 99 102 91 86 88 P93 *25 168 244 148 154 213 284 301 215 128 120 P181 P124 87 86 87 87 87 88 88 88 87 88 90 P93 P181 P123 P93 P188 124 128 130 132 134 136 140 145 152 165 174 P Preliminary. 1 These figures include only personal instalment cash loans and retail automobile direct loans, shown on the following page, and a small amount of other retail direct loans (25 million dollars at the end of January 1946), not shown separately. 2 This series is in process of revision. 3 Includes only loans insured by Federal Housing Administration. FEDERAL RESERVE BULLETIN CONSUMER CREDIT STATISTICS—Continued CONSUMER INSTALMENT CREDITS OF COMMERCIAL BANKS. BY TYPE OF CREDIT [Estimates. In millions of dollars] Month or year Outstanding at end of period: 1939 1940 1941 1942 1943 1944 Total Automobile retail Other retail, purchased Pur- Direct and chased loans direct Repair and modernization loans1 Personal instalment cash loans 1,093 1,450 1,694 845 514 559 731 218 311 411 136 55 57 65 164 253 310 123 81 99 146 155 217 288 143 68 75 97 209 247 234 154 89 83 121 347 422 451 289 221 245 302 1945—January. . . February.. March. . . . April May June July August September. October. . . November. December ? 562 556 573 579 592 609 619 622 633 659 694 731 56 55 56 55 55 56 56 57 58 60 62 65 100 101 107 109 112 116 118 119 122 128 135 146 80 76 76 77 78 79 79 79 79 83 90 97 82 83 84 86 89 93 96 100 103 109 116 121 244 241 250 252 258 265 270 267 271 279 291 302 1946—January?.. 770 70 154 125 313 Volume extended during month: 1945—January... February.. March. . . . April May June July August.. . . September. October. . . November. December** 96 86 114 101 110 116 107 108 106 131 140 147 20 19 24 21 22 24 22 23 23 28 29 32 17 12 15 16 18 15 13 15 13 19 21 24 7 7 9 10 10 12 11 12 12 15 16 13 43 39 54 45 50 53 50 47 46 56 60 64 1946—January?.. 155 33 27 14 62 1945P P Preliminary. Includes not only loans insured by Federal Housing Administration but also noninsured loans. 1 Jan. Percentage change from corresponding month of preceding year Jan. Dec. 1946? 1945 Net sales: Total Cash sales Credit sales: Instalment Charge account Accounts receivable, at end of month: Total Instalment Collections during month: Total Instalment Inventories, end of month, at retail value. * Preliminary » MARCH 1946 Month or year Nov. 1945 Dec. 1946? 1945 Credit unions 463 503 413 380 42 41 498 376 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945? 340 250 38 34 33 42 67 105 148 179 202 234 288 354 409 417 304 384 423 563 619 604 489 536 257 320 983 798 558 408 372 247 809 876 978 364 403 465 228 234 233 38 22 19 20 19 18 18 23 763 927 792 636 744 938 1944 June July August . . . September October November December 69 75 63 64 60 61 73 70 67 68 77 34 72 . 106 37 1945 January February March April 66 62 58 56 33 30 82 69 75 94 70 78 42 34 39 May June July August September October November December? 1946 January? 61 33 35 33 34 16 16 23 18 20 21 19 18 81 75 '73 72 88 94 101 82 76 71 74 89 97 133 40 37 36 36 44 45 49 16 20 22 24 102 76 45 20 T P Preliminary. Revised. 1 These figures for loans made include only personal instalment cash loans and retail automobile direct loans, which are shown elsewhere on this page, and a small amount of other retail direct loans (7 million dollars in January 1946) not shown separately. 2 This series is in process of revision. -^28 -29 + 15 +28 -31 -23 + 15 +4 + 10 +3 0 +38 +62 +41 +21 + 16 +30 +12 + 15 + 19 +37 + 13 +28 -7 -5 +9 + 10 +6 +5 +4 +9 +4 +6 +3 +2 + 10 +5 -2 -1 +3 +4 + 17 +25 + 12 + 11 + 11 + 14 +4 -10 -2 + 11 +6 +6 Charge accounts Instalment accounts Month 1944 December Furniture stores 37 23 39 21 21 24 22 23 23 24 23 23 27 27 24 35 32 36 36 40 43 42 48 49 52 51 48 29 28 32 30 33 33 31 31 30 31 '35 46 31 24 54 January February March April May June July August September October November December Department stores 32 1945 January? Household ap- Jewelry stores pliance stores Department stores '32 30 36 30 32 32 31 33 35 40 40 36 Nov.* 1945 +7 Commercial Small loan Industrial banking companies companies2 banks* RATIO OF COLLECTIONS TO ACCOUNTS RECEIVABLE i FURNITURE STORE STATISTICS Percentage change from preceding month CONSUMER INSTALMENT LOANS MADE BY PRINCIPAL LENDING INSTITUTIONS [Estimates of volume made in period. In millions of dollars! 1946 62 61 61 66 61 64 64 62 63 63 66 67 61 r ? Preliminary. Revised. 1 Ratio of collections during month to accounts receivable at beginning of month. 335 WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index numbers of the Bureau of Labor Statistics. 1926 = 100] Other commodities Year, month, or week All commodities Week ending: 1945—Oct. 13. . Oct. 20. . Oct. 27. . Nov. 3. . Nov. 10. . Nov. 17. . Nov. 24. . Dec. 1. . Dec. 8. . Dec. 15.. Dec. 22. . Dec. 29. . 1946—Jan. 5 . . Jan. 12.. Jan. 19.. Jan. 26. . Feb. 2. . Feb. 9 . . Feb. 16.. Feb. 2 3 . . 105.3 105.5 105.7 105.9 106.1 106.3 106.7 106.8 106.5 106.7 106.8 107.0 106.8 106.7 106.7 106.8 106.8 107.1 107.2 107.4 Foods 104.9 88.3 64.8 48.2 51.4 65.3 78.8 80.9 86.4 68.5 65.3 67 82.4 105.9 122.6 123.3 128.2 126.2 127.0 127.2 129.0 129.9 130.4 129.0 126.9 124.3 1-27.3 131.1 131.5 129.9 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1945—January.. February. March.... April May June July August. . . September October... November December. 1946—January.. Farm products 99.9 90.5 74.6 61.0 60.5 70.5 83.7 82.1 85.5 73.6 70.4 71 82.7 99.6 106.6 104.9 106.2 104.7 104.7 104.6 105.8 107.0 107.5 106.9 106.4 104.9 105.7 107.9 108.6 107.3 91.6 85.2 75.0 70.2 71.2 78.4 77.9 79.6 85.3 81.7 81.3 83.0 89.0 95.5 96.9 98.5 99.7 99.1 99.2 99.2 99.3 99.4 99.6 99.7 99.9 99.8 100.1 100.2 100.5 100.8 109.1 100.0 86.1 72.9 80.9 86.6 89.6 95.4 104.6 92.8 95.6 100.8 108.3 117.7 117.5 116.7 118.1 117.5 117.6 117.8 117.9 117.9 118.0 118.0 118.0 118.7 118.6 118.8 118.9 119.4 90.4 80.3 66.3 54.9 64.8 72.9 70.9 71.5 76.3 66.7 69.7 73.8 84.8 96.9 97.4 98.4 100.1 99.6 99.7 99.7 99.6 99.6 99.6 99.6 99.6 100.1 101.0 101.1 101.4 101.6 83.0 78.5 67.5 70.3 66.3 73.3 73.5 76.2 77.6 76.5 73.1 71.7 76.2 78.5 80.8 83.0 84.0 83.3 83.3 83.4 83.5 83.7 83.9 84.3 84.8 84.1 84.2 84.6 84.8 84.9 100.5 92.1 84.5 80.2 79.8 86.9 86.4 87.0 95.7 95.7 94.4 95.8 99.4 103.8 103.8 103.8 104.7 104.0 104.2 104. 104. 104.3 104. 104. 104.7 104.9 105.0 105.2 105.6 105.7 95.4 89.9 79.2 71.4 77.0 86.2 85.3 86.7 95.2 90.3 90.5 94.8 103.2 110.2 111.4 115.5 117.8 116.8 117.0 117.1 117.1 117.3 117.4 117.5 117.8 118.0 118.3 118.7 119.5 120.0 94.0 88.7 79.3 73.9 72.1 75.3 79.0 78.7 82.6 77.0 76.0 77.0 84.4 95.5 94.9 95.2 95.2 94.9 94.9 94.9 94.9 94.9 95.0 95.3 95.3 95.3 95.5 95.7 96.1 96.0 94.3 92.7 84.9 75.1 75.8 81.5 80.6 81.7 89.7 86.8 86.3 88.5 94.3 102.4 102.7 104.3 104.5 104.5 104.5 104.5 104.5 104.5 104.5 104.5 104.5 104.6 104.7 104.7 104.7 106.2 82.6 77.7 69.8 64 62 69 68 70.5 77.8 73.3 74.8 77.3 82.0 89.7 92.2 93.6 94.7 94.2 94.6 94.6 94.8 94.8 94.8 94.8 94.8 94.8 94.8 94.8 94.8 95.3 126.3 126.9 127.7 129.1 129.5 130.3 132.1 132.0 130.3 131.3 131.5 132.7 131.3 130.0 129.3 129.9 129.7 130.4 131.0 131.1 105.2 105.8 106.0 106.6 107.0 107.2 108.7 108.5 108.1 108.3 108.6 109.5 108.0 107.6 107.3 106.8 106.7 107.1 108.0 108.3 100.0 100.1 100.1 100.1 100.2 100.3 100.3 100.4 100.5 100.5 100.5 100.6 100.6 100.7 100.8 100.9 100.9 101.1 101.1 101.1 118.4 119.1 119.1 119.1 119.1 119.1 119.1 119.4 119.4 119.4 119.4 119.4 119.4 119.4 119.4 119.4 119.8 120.0 120.1 120.1 99.9 99.9 99.9 100.0 100.5 100.5 100.5 100.6 100.6 100.6 100.6 100.6 100.6 101.0 101.1 101.1 101.1 101.1 101.1 101.1 84.5 84.5 84.7 84.5 84.5 84.6 84.6 85.1 85.2 85.2 85.2 85.3 85.2 85.5 85.5 85.4 85.4 85.8 85.7 85.6 104.8 105. 105.2 105.2 105.3 105.3 105.3 105.3 105.3 105.3 105.3 105.3 105.3 105.4 105.4 105.8 105.8 105.8 105.8 105.8 118.0 118.1 118.1 118.2 118.6 118.6 118.7 118.7 118.7 118.8 118.8 118.9 119.1 119.2 119.8 119.9 119.9 119.9 120.0 120.2 95.3 95.5 95. 95. 95. 95.6 95.6 96.1 96.1 96.1 96.1 96.1 96.1 96.1 96.1 96.0 96.0 96.0 95.9 96.0 106.3 106.3 106. 106. 106. 106. 106. 106. 106. 106. 106. 106. 106.4 106.4 106.6 106.6 106.8 106.8 106.8 108.0 94.6 94.6 94.6 94.6 94.6 94.6 94.6 94.6 94.6 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.3 95.4 95.4 ChemiHides and Textile Fuel and Metals Building cals and Houseleather lighting ind metal furnish- Miscelallied products products materials products materials products ing goods laneous Total Annual Subgroups 1944 Farm Products: Grains Livestock and poultry Other farm products Foods: Dairy products Cereal products Fruits and vegetables Meats Other foods Hides and Leather Products: Shoes Hides and skins Leather Other leather products Textile Products: Clothing Cotton goods Hosiery and underwear Silk Rayon Woolen and worsted goods.. . Other textile products Fuel and Lighting Materials: Anthracite Bituminous coal Coke.. Electricity Gas Petroleum products 1945 Annual Jan. Dec. Jan. 126.9 129.7 129.3 133.2 133.8 124.6 132.5 131.1 129.6 131.5 120.7 124.3 121.5 131.3 126.9 110.5 111.1 110.8 113.8 115.0 94.8 95.2 94.7 95.7 95.8 121.3 122.8 114.4 128.7 125.7 106.1 107.8 106.4 107.9 108.1 95.0 96.6 97.3 100.6 96.2 126.3 109.9 101.3 115.2 126.4 117.0 102.2 115.2 126.3 114.8 101.3 115.2 126.8 117.6 104.1 115.2 127.9 117.6 103.8 115.2 107.1 107.4 107.4 107.4 107.4 115.7 121 A 119.7 125.5 125.6 70.9 71.7 71.5 73.5 75.2 30.2 30.2 30.2 30.2 30.2 112.7 112.7 112.7 112.7 112.7 100.6 101.1 100.9 101.9 101.9 95.6 99.0 95.3 103.4 103.9 120.3 123.1 120.5 125.0 125.1 130.3 132.5 130.7 134.9 134.9 60.0 59.6 75.7 77.*7 77.2 63.9 63.5 64.3 61.6 61.5 Subgroups Metals and Metal Products: Agricultural implements.. Farm machinery Iron and steel Motor vehicles Nonferrous metals Plumbing and heating Building Materials: Brick and tile Cement Lumber Paint and paint materials. Plumbing and heating Structural steel Other building materials.. Chemicals and Allied Products: Chemicals Drugs and Pharmaceutical Fertilizer materials Mixed fertilizers Oils and fats Housefurnishing Goods: Furnishings Furniture Miscellaneous: Auto tires and tubes Cattle feed Paper and pulp Rubber, crude Other miscellaneous 1944 1945 1945 Jan. Dec 1946 Jan. 97.3 97.8 97.5 98.1 98.1 98.4 98.8 98.7 99.1 99.1 97.2 99.2 97.7 101.0 101.2 112.8 112.8 112.8 112.8 112.8 85.8 85.8 85.9 85.8 85.7 92.2 93.4 92.4 95.0 95.0 101.7 95.8 153.3 105.2 92.2 107.3 103.1 112.4 99.4 155.1 106.9 93.4 107.3 104.4 110.4 97.4 153.8 106.3 92.4 107.3 103.5 116.7 100.5 157.8 107.8 95.0 107.3 105.9 116.9 101.0 158.5 107.8 95.0 107.3 106.6 96.1 96.1 95.8 97.1 97.1 108.8 109.0 106.9 112.3 112.1 81.3 81.6 81.9 81.9 81.9 86.4 86.6 86.6 86.6 86.6 102.0 102.0 102.0 102.0 101.7 107.3 107.6 107.5 107.9 109.7 101.4 101.5 101.5 101.6 102.8 73.0 73.0 73.0 73.0 73.0 159.6 159.6 159.6 159.6 159.6 107.1 108.8 107.6 109.3 112.0 46.2 46.2 46.2 46.2 46.2 97.0 98.9 98.2 98.9 98.9 * Backfigures.—Bureauof Labor Statistics, Department of Labor. 336 FEDERAL RESERVE BULLETIN GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND INCOME PAYMENTS [Estimates of the Department of Commerce. In billions of dollars] 1945 by quarters Annual totals Seasonally adjusted annual rates Unadjusted 1937 1938 1939 1940 1941 1942 1943 1944 1945 1 Gross national product Government expenditures for goods and services Federal Government 19.5 17.7 14.5 12.4 95.6 87.8 99.2 91.3 79.5 71.6 57.7 49.8 69.0 6.1 7.9 9.4 2.7 20.5 1.4 2.0 1.2 0.4 21.3 1 7 2.0 1.6 0.6 16.3 10.8 1 4 1.6 1.7 2.1 3.1 3.5 1.0 0.8 82.2 5.6 7.8 3.9 1.8 85.3 6.0 7.8 7.1 2.4 65.2 6.4 7.9 12.5 2.9 43.3 6.5 8.0 14.2 3.7 0.5 1.1 0.8 1.9 0.1 0.3 0.1 0 4 0.2 0 5 0.3 0.6 6.4 1.3 1.5 1.8 1.8 5.2 14.4 6.8 16.0 7.9 16.7 8.8 26.5 18.6 '62.7 '55.3 '93.5 '86.2 '97.1 '89.5 83.0 75.1 1.4 2.8 6.5 6.1 7 6 8 1 7 9 7.7 10.9 14.8 3 3 3 6 4 3 13.3 5 3 7 9 '19.1 '5 3 '50.3 5 0 7.4 '7.6 '2.9 '81.3 4.9 7.4 '2.5 '1.6 '83.7 '5.7 '7.7 '2.0 1.6 0.6 '1.0 2.0 1.6 87.7 Gross national product Deductions: Business tax and nontax liabilities Depreciation and depletion Other business reserves. . . Capital outlay charged to current expense Adjustments: For inventory revaluation. For discrepancies National income Additions: Transfer payments Deductions: Corporate savings Contributions to social insurance funds Income payments to individuals .. 25.1 23.1 13.6 6.1 2.4 2 0 2.8 2 5 1.3 '1 6 55 6 9 8 9 5.1 3.1 4.0 -0.5 -0.6 -1.7 1 C) 0) 0.9 1.8 0.8 1.5 0.2 61.7 6.4 32.6 22.7 0.3 65.7 7.4 34.4 23.9 80.6 88.6 97.1 '120.2 '152.3 '187.4 '197.6 197.3 49.8 9.0 6 1 1.0 8.3 6.2 0.5 10.4 6 2 0.8 12.4 6 4 0.7 18.5 7 0 0.8 23.1 7 6 '0.6 27.4 '8.0 '0.5 '29.7 '8.2 '0.5 28.6 8 2 0.5 7 3 2 0 0.1 0 8 0 5 0 7 0 9 1 3 1 1 0 8 0 9 1 1 0 2 -0.7 0 71.5 +0.9 1.7 -0.4 -0.4 0 0 -0.4 64.2 70.8 77.6 C1) 0.2 74.6 9.1 40.1 25.4 0.1 '82.0 6.3 47.9 '27.8 -2.1 '-0.2 96;< 122.2 '-1.5 '-1.8 0) '91.3 6.6 55.1 '29.7 4 24.0 21.9 97.1 '120.2 '152.3 '187.4 '197.6 197.3 49.8 3.5 3 47.0 204.5 206.3 195.7 182.8 88.6 4 5 6 3 Net change in business ini ? 1.1 ventories Net exports of goods and 0.1 services 1.1 Net exports and monetary 0.4 0.1 use of gold and silver.... Consumer goods and services.. . 62.5 58.5 6.0 Durable goods 7.6 Nondurable goods J54.9 J52.5 Services. 2 48.7 80.6 Residential Other Producers durable equip- 1 51.8 87.7 War Nonwar 7.5 State and local governments. Private gross capital formation. 11.6 Construction 3 7 4 3 2 -0.2 0.4 - 0 . 4 - 0 . 2 '-0.1 -0.1 C1) 0) '98.5 104.9 24.7 25.0 6.7 7.4 1.7 1.5 60.0 64.4 15.0 14.9 '31.8 33.1 8.4 8.2 -0.2 -0.1 0) C1) '1.5 ' - 2 . 2 - 2 . 0 - 0 . 8 149.4 160.7 161.0 40.9 6.1 7.0 7.2 0.4 - 0 . 2 - 1 . 3 - 0 . 2 0.2 1.6 0.5 - 1 . 7 - 1 . 0 2.5 1.9 0.6 C1) 25.7 29.5 1.7 2.5 15.7 18.8 8.3 8.2 -0.1 -0.1 -0.1 -0.1 105.0 100.0 103.7 110.9 6.7 8.4 7.2 7.1 65.2 59.5 63.3 69.5 32.6 33.7 33.3 33.0 47.0 204.5 206.3 195.7 182.8 51.8 48.7 7 5 2 0 0.1 7 3 2.0 0.1 6 5 2.0 0.1 0 2 0 3 0 3 C1) 0) 0.6 - 0 . 8 - 1 . 0 41.3 39.8 39.0 167.6 166! 2 158^4 2.4 2.4 2.6 2.5 2.7 3.2 5.3 8 1 1 5 1 7 1 9 3 0 -0.8 -1.5 0.4 1.8 4.0 4.4 5.5 5.4 4.5 1.6 1.5 1.1 0.2 1 7 1 9 2 0 2 1 2 6 3 2 3 8 3 9 3 8 1 0 1 0 0 9 72.3 66.2 70.8 76.2 92.7 117.3 143.1 156.8 160.7 39.8 40.4 39.7 40.9 163.7 163.2 158.6 156.9 72.3 66.2 70.8 76.2 92.7 117.3 143.1 156.8 160.7 40.9 163.7 163.2 158.6 156.9 3.1 1 4 1.7 3.J 1 6 1.7 3.1 1 3 1.9 3.3 1.4 1.9 4.0 2.0 2.0 6.7 4.7 2.0 '18.6 16.6 2.0 '19.4 '17.4 '2. 69.2 62.5 6.7 62.9 58.5 4.4 67.7 61.7 6.0 72.9 65.7 7.3 88.7 74.6 14.2 110.6 '82.0 '28.6 National income 71.5 Total compensation of employee 48.3 Salaries and wages 45.0 Supplements 3 3 Net income of proprietors.... 11.9 Agricultural. . . 5. Nonagricultural 6.8 Interest and net rents 7.4 Net corporate profit 3.9 4.7 Dividends 0 8 Savings 64.2 45.1 41.2 3.9 10.1 4.C 6. 70.8 48.1 44.2 3.8 11.2 4.3 6.9 7.4 4.2 1. 3 8 3.2 1 5 0 4 77.6 52.3 48.6 3.7 12.0 4.4 7.6 7.5 5.8 4 0 1 8 96.9 64.5 60.8 3.7 15.8 6.3 9.6 8.0 8.5 4 5 4 0 122.2 149.4 160.7 161.0 40.9 41.3 39.8 39.0 167.6 166.2 158.4 150.7 84.1 106.3 116.0 114.5 29.8 29.8 28.2 26.7 119.6 118.3 113.0 105.7 80.8 103.1 112.8 111.4 29.0 29.0 27.5 26.0 116.4 115.1 110.0 102.7 3.2 0.8 3.3 3.1 3.2 0.8 0.8 0.7 3.2 3.2 3.0 2.9 5.8 23.5 20.6 24.1 25.6 5.7 6.6 7.5 26.3 25.8 25.1 26.0 2.6 11.9 9.7 11.8 12.5 2.5 3.4 4.1 13.3 13.2 12.2 12.1 3.2 11.6 10.9 12.3 13. 3.2 3.2 3.5 13.0 12.6 12.9 13.9 3.1 9.7 8.8 10.6 11.8 2.9 2.8 3.0 11.4 11.7 11.9 12.2 2.6 9.8 8.7 9.9 9.0 2.6 2.1 1.7 10.4 10.4 8.4 6.8 1 4 3 4 3 4 5 4 5 1 0 1 0 I i 4 4 5 5 5 4 4 5 1 5 1 6 0 2 Income payments to individuals Personal taxes and nontax payments Federal State and local Disposable income of individuals Consumer expenditures. . . Net savings of individuals. 39.8 40.4 39.7 21.0 18.9 2.1 8.7 8.1 0.6 4.9 4.3 0.6 3.8 3.5 0.3 124.6 '137.4 139.7 '91.3 '98.5 104.9 '33.3 '38.9 34.9 31.1 24.7 6.4 35.5 25.0 10.5 35.9 25.7 10.2 0 9 3.7 3.0 0.6 22.1 20.0 2.1 21.7 19.5 2.1 20.6 18.5 2.1 19.7 17.6 2.1 37.2 141.7 141.6 138.0 137.3 29.5 105.0 100.0 103.7 110.9 7.7 36.7 41.6 34.3 26.4 1 Less than 50 million dollars. ' Revised. NOTE.—Detail does not always add to totals because of rounding. For a general description of above series see the Survey of Current Businessf May and August, 1942, and March, 1943. Back figures: For annual totals 1929 through 1936, see the Survey of Current Business, May, 1942 and April, 1944. For quarterly estimates, 1929 through 1944, see the Survey of Current Business April 1944, and February, 1946. MARCH 1946 337 CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK* ON BANK CREDIT, MONEY RATES, AND BUSINESS Chan book page 1946 Jan. 23 WEEKLY FIGURESi Jan. 30 Feb. 6 Feb. 13 Feb. 20 1946 Nov. Dec, Jan.' In billions of dollars MONTHLY FIGURES In billions of dollars RESERVES AND CURRENCY RESERVES AND CURRENCY Reserve Bank credit, total U. S. Govt. securities, total Bills Certificates Notes Bonds Discounts and advances Gold stock Money in circulation Treasury cash Treasury deposits Member bank reserves 2, Required reserves Excess reserves6 Excess reserves (weekly average), total* New York City Chicago Reserve city banks Country banks e .42 .62 16.04 5.21 6.38 4.45 14.88 5.18 6.08 3.61 1.17 16.03 5.06 6.39 4.58 14.53 4.99 5.98 3.56 1.50 24.30 20.11 28.16 2.26 .65 15.92 4.97 6.36 4.59 14.61 4.96 6.02 3.63 1.31 1.88 4.26 28.21 7.71 15.88 4.62 2.07 4.53 28.51 7.84 15.98 4.70 2.07 4.54 27.92 7.79 15.59 4.53 168.10 P80.50 P48.00 P26.50 P13.10 P175.OO P75.1O P48.50 P26.80 P24.60 P176.4O P76.50 P49.10 P26.20 P24.60 6.28 1.44 1.84 P6.67 Pl.50 Pl.98 P.77 P2.42 Pi.51 P.90 P.23 P.68 P6.45 Pl.53 Pl.71 p.78 P2.43 Pl.55 P.88 P.24 P.64 2C 263.39 276.25 278.00 20 20 20 20 109.37 75.55 57.03 20.71 121.36 78.10 57.17 20.65 23.92 23.90 23.84 23.93 23.7' Reserve Bank credit old stock 23.34 23.30 23.23 23.25 23.02 12.78 12.89 12.94 13.06 13.10 Money in circulation 7.59 Treasury cash 8.19 7.84 8.06 7.94 1.38 Treasury deposits 1.43 1.40 1.40 1.40 .95 .21 .95 .31 20.14 20.16 27.98 27.91 2.28 2.30 .58 .76 15.86 15.68 14.69 14.62 1.17 1.06 1.22 Pl.19 .01 .01 .29 .92 P.90 68.11 49.53 38.04 16.08 15.22 68.21 49.66 38.03 16.27 15.19 .02 .01 .27 MEMBER BANKS IN LEADING CITIES Total—101 cities: Loans and investments U. S. Govt. obligations Demand deposits adjusted U. S. Govt. deposits Loans New York City: Loans and investments U. S. Govt. obligations, total Bonds Certificates Notes and guar. securities Bills Demand deposits adjusted U. S. Govt. deposits Interbank deposits Time deposits Loans, total Commercial For purchasing securities: Brokers'—on U. S. Govts Brokers'—on other securities... To others Allother 100 cities outside New York: Loans and investments U. S. Govt. obligations, total Bonds Certificates Notes and guar. securities Bills Demand deposits adjusted U. S. Govt. deposits Interbank deposits Time deposits Loans, total Commercial For purchasing securities All other Chart book page 24.39 20.03 28.15 2.27 .95 Member bank reserves, total. . Central reserve city banks. . .35 Reserve city banks 20.16 20.16 20.23 Country banks 27.93 27.97 27.96 2.3: Required reserves, total 2.30 2.31 Central reserve city banks. . .94 .86 .72 Reserve city banks. 15.72 15.69 15.49 Country banks 14.49 P14.46 P14.43 )xcess reserves, total , Pi.22 Pl.24 Pl.06 Balances due from banks: Pi. 20 Pl.18 Reserve city banks , .01 ".03 .02 Country banks .01 .01 Money in circulation, total. .28 .28 Bills of $50 and over P.90 P. 89 $10 and $20 bills Coins, $1, $2 and $5 bills. . . .95 .41 .95 .29 24.74 20.05 28.45 2.27 ALL BANKS IN U. S. 14 14 14 14 14 68.22 49.72 37.82 16.34 15.14 67.94 49.49 37.54 16.39 15.07 68.18 49.59 37.69 16.43 15.18 15 23.70 23.76 23.82 23.61 23.66 15 16.28 16.36 16.45 16.30 16.23 16 9.56 9.56 9.57 9.56 9.50 16 3.53 3.53 3.61 3.53 3.59 16 2.72 2.72 2.73 2.74 2.76 16 .38 .47 .47 .56 .54 15 13.73 13.73 13.73 13.46 13.57 15 6.16 6.23 6.24 6.26 6.27 15 4.31 4.23 4.25 4.28 4.23 15 1.14 1.14 1.15 1.15 1.16 15 6.34 6.32 6.28 6.23 6.34 17 2.84 2.85 2.89 2.90 2.92 16 16 17 17 15 15 16 16 16 16 15 15 15 15 15 17 17 17 1.30 .55 1.28 .54 1.21 1.22 .53 .52 1.04 1.06 1.02 .60 .58 .63 .59 44.41 33.26 17.53 9.19 5.25 1.29 24.30 9.91 7.46 8.37 8.89 4.43 2.16 2.30 44.45 33.30 17.63 9.25 5.24 1.18 24.30 10.04 7.14 8.38 8.88 4.45 2.15 2.28 44.41 33.27 17.63 9.26 5.21 1.16 24.09 10.09 7.18 8.41 8.85 4.46 2.10 2.30 44.33 33.19 17.68 9.26 5.20 1.05 24.08 10.13 7.19 8.43 8.85 4.46 2.07 2.31 1.01 Treasury bills (new issues) 24 Treasury notes (taxable) 24 Treasury bonds (taxable) 24, 26 High-grade corporate bonds (5 issues). 26 Corporate Aaa bonds 26 Corporate Baa bonds 26 .375 1.06 2.18 2.39 2.52 3.00 .375 1.07 2.17 2.37 2.50 2.98 .375 1.06 2.14 2.37 2.49 2.96 .375 1.04 2.10 2.36 2.48 2.94 CONSUMER CREDIT Consumer credit, total 18 Single payment loans 18 Charge accounts 18 Service credit 18 Instalment credit, total 18, 19 Instalment loans 19 Instalment sale credit, total. 19 Automobile 19 Other 19 44.52 33.36 17.72 9.30 5.20 1.14 24.12 10.17 7.09 8.45 8.84 4.47 2.05 2.33 .375 1.00 2.10 2.36 2.48 2.94 .76 2.24 1.43 .81 .22 .59 TREASURY FINANCE 1.25 .52 U. S. G o v t . obligations o u t s t a n d ing, total interest-bearing. . 1.04 By classes of securities: .62 Per cent per annum MONEY RATES, ETC. Total deposits and currency.. . , Demand deposits Time deposits "urrency outside banks LJ. S. Govt. deposits Bonds (marketable issues).. Notes, cert., and bills Savings bonds and tax notes Special issues By m a t u r i t i e s : 5 years and over 5-20 years 5-10 years W i t h i n 5 years W i t h i n 1 year Certificates Bills Holdings of U. S. G o v t . obligations: Commercial b a n k s Fed. agencies and t r u s t funds. Federal Reserve Banks M u t u a l savings b a n k s Insurance companies Other investors, total M a r k e t a b l e issues 120.42 78.16 56.91 20.00 20 101.32 109.70 110.63 67.28 67.17 66.22 20 46.59 46.59 49.29 20 89.00 83.80 89.08 20 68.51 63.24 68.57 20 41.50 35.02 38.16 20 17.04 17.03 17.04 20 21 21 21 21 21 21 -21 85.60 90.00 26.84 27.04 24.26 23.47 9.80 10.70 '22.30 24.10 '95.40 100.10 r 40.40 45.30 27.70 23.26 Per cent per annum MONEY RATES, ETC. In unit indicated Stock prices (1935-39=100), t o t a l . . . . Industrial Railroad Public utility Volume of trading (mill, shares) 27 27 27 27 27 145 148 166 125 149 151 168 127 149 152 169 127 1.88 2.39 1.62 145 147 162 124 1.72 BUSINESS CONDITIONS 2 Steel production (% of capacity) Electric power prod. (mill. kw. hrs.). . Freight carloadings (thous. cars) Department store sales (1935-39=100) Wholesale prices (1926=100), total. . . Farm products Other than farm and food 37 37 45 45 49 49 49 5.1 5.9 6.0 5.5 4,034 3,983 3,983 3,949 709 189 723 197 713 215 707 209 106.8 106.8 107.1 107.2 129.9 129.7 130.4 131.0 100.9 100.9 101.1 101.1 Corporate Aaa bonds "". R. Bank discount rate (N. Y.) Treasury bills (new issues) 141 143 154 122 1.90 itock prices (1935-39 =100): Total Industrial Railroad 15.2 Public utility Volume of trading (mill, shares). 723 212 Brokers' balances (mill, dollars): Credit extended customers. .. 107.4 Money borrowed 131.1 Customers' free credit balances 101.1 23 23 23 2.62 2.54 .50 .375 2.61 .50 .50 .375 .375 In unit indicated 27 27 27 27 27 29 29 29 137 139 154 121 140 142 157 120 1.96 1.63 1,095 1,138 711 639 795 654 145 148 164 124 2.18 1,168 734 727 For footnotes see page 339. 338 FEDERAL RESERVE BULLETIN CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK—Continued Chart book page MONTHLY FIGURES—Cont 1945 Nov. Dec Jan. MONTHLY FIGURES—Cont. In unit indicated BUSINESS CONDITIONS Income payments (mill, dollars) :4 Total 30 Salaries and wages 30 Other 30 Cash farm income (mill, dollars): Total 31 Livestock and products 31 Crops 31 Govt. payments 31 Armed forces (mill, persons) 32 Civilian labor force (mill, persons): Total 32 Male 33 Female 33 Unemployment 32 Employment 32 Nonagricultural 33 Agricultural 33 Industrial production:4 Total (1935-39 = 100) 35 Groups (points in total index): Durable manufactures 35 Nondurable manufactures 35 Minerals 35 New orders, shipments, and inventories (1939 = 100): New orders: Total 36 Durable 36 Shipments: Total 36 Durable 36 Nondurable 36 Inventories: Total 36 Durable 36 Nondurable 36 Factory employment and pay rolls (1939 = 100): Pay rolls 38 Employment 38 Hours and earnings at factories: Weekly earnings (dollars) 39 Hourly earnings (cents) 39 Hours worked (per week) 39 Nonagricultural employment (mill, persons) :4 Total 40 Manufacturing and mining 40 Trade 40 Government 40 Transportation and utilities 40 Construction 40 Construction contracts 4 (3 mo. moving average, mill, dollars): Total 41 Residential 48 Other 41 Residential contracts (mill, dollars) :4 Total 42 Public 42 Private, total 42 1- and 2-family dwellings 42 Other 42 Freight carloadings:4 Total (1935-39 = 100) 43 Groups (points in total index): Miscellaneous 43 Coal 43 All other 43 Department stores (1935-39 = 100) :* Sales 44 Stocks 44 Exports and imports (mill, dollars): Exports 46 Excluding Lend-Leasc exports 46 Imports 46 Excess of exports excluding Lend-Lease exports 46 Cost of living (1935-39 = 100): All items 47 Food 47 Clothing 47 Rent 47 Chart book page BUSINESS CONDITIONS 2,250 1,057 1,153 40 9.2 1,802 956 830 16 7.9 53.3 36.1 17.2 2.0 51.4 44.2 7.2 53.7 37.6 16.2 2.3 51 44. 6.8 168 163 72.5 73.9 21.1 70.1 73.0 20.2 '184 '171 P190 '203 '202 '204 P194 P192 P195 '169 '174 '164 49 49 49 106.8 131.1 100.2 107.1 131.5 100.5 107.1 129.9 100.8 1945 P878 P659 '6.*2 Apr.- June QUARTERLY FIGURES MONEY RATES Bank rates on customer loans: Total, 19 cities New York City Other Northern and Eastern cities. . . . Southern and Western cities P159 23 25 25 25 SECURITY MARKETS P63.4 Corporate security issues: Net proceeds: P74.6 All issues P21.1 Industrial Railroad Public utility New money: All issues Industrial Railroad Public utility Oct.Dec. JulySept. Per cent per annum P167 P170 P164 P169 Jan. Dec In unit indicated I,537 53.4 35.3 18.2 1.7 51.7 43.3 8.4 Nov. 1946 Cont. Wholesale prices (1926 = 100): Total Farm products Other than farm and food 13,195 v13,086 8,488 P8.377 4,707 P4,709 1945 2.50 2.20 2.55 2.80 2.45 2.05 2.53 2.81 2.09 1.71 2.23 2.38 In millions of dollars 28 28 28 28 1,208 400 435 354 2,139 831 459 786 1,636 433 315 807 28 28 28 28 244 184 32 13 369 313 26 272 157 46 41 5 1945 Mar. 20 CALL DATE FIGURES 212.5 121.6 215.5 121.6 '40.82 '99.1 '41.2 41.43 99.7 41.6 35.3 12.7 7.3 5.6 3.9 1.0 35.6 12.7 7.3 5.7 3.9 1.1 385 81 304 443 104 339 95 1 94 68 26 107 11 96 82 14 96 2 94 72 22 133 127 133 73.0 31.4 28.3 71.5 28.3 26.8 73.5 31.6 27.5 '225 150 216 '141 226 156 J>639 P524 P322 P736 P548 >301 June 30 Dec. 31 In billions of dollars P122.2 ALL MEMBER BANKS P201 129.9 141.4 149.4 108 3 P7.7 P5.5 P3.9 Pi.2 P247 '129.3 140.1 '148.7 P36.2 P12.9 129.9 141.0 149.5 Loans and investments, total 10 U. S. Govt. obligations, total 10 Bonds 11 Certificates 11 Notes 11 Bills 11 Guaranteed obligations 11 Other securities, total 10 State and local government obligations 11 Other securities 11 Loans, total 10 Commercial 11 Real estate 11 Brokers' 11 Agricultural 11 Demand deposits adjusted 10 90.52 67.92 (6) (5) (5) (5) (5) 5.39 99.43 P107.14 73.24 P78.31 40.27 15.58 14.72 2.63 .03 5.60 P6.05 2.99 2.40 17.22 (5) (5) (5) (5) 61.17 3.10 2.50 20.59 7.10 3.25 2.53 1.13 59.13 12 12 12 12 12 12 27.95 20.41 1.47 6.07 18.60 1.73 31.49 21.62 1.55 8.32 17.80 1.79 12 12 12 12 12 12 33.45 25.30 1.80 6.35 21.74 8.28 36.57 P40.10 27.52 »29.56 1.89 *2.04 7.15 P8.51 20.68 8.76 13 13 13 13 13 13 29.13 22.20 2.12 4.81 20.84 10.54 31.37 24.09 2.16 P22.79 CLASSES OF BANKS Central reserve city banks: Loans and investments, total U. S. Govt. obligations Other securities Loans Demand deposits adjusted Time deposits Reserve city banks: Loans and investments, total U. S. Govt. obligations Other securities Loans Demand deposits adjusted Time deposits Country banks: Loans and investments, total U. S. Govt. obligations Other securities Loans Demand deposits adjusted Time deposits 5.11 P32.07 P21.79 Pl.62 P8.67 P34.97 P26.96 P2.39 P5.61 20.66 11.26 * Estimated. P Preliminary. ' Revised. Figures for other than Wednesday dates are shown under the Wednesday included in the weekly period. Capacity base changed effective Jan. 2, 1946. Revised figures for earlier weeks are: Jan. 2, 83.8; Jan. 9, 85 .2; and Jan. 16, 79.5. For charts on pages 20, 23, and 27, figures for a more recent period are available in the regular BULLETIN tables that show those series. Adjusted for seasonal variation. Figures available for June and December dates only. * Copies of the Chart Book may be obtained at a price of 50 cents each. 1 2 3 4 5 MARCH 1946 339 INTERNATIONAL FINANCIAL STATISTICS PAGE Gold reserves of central banks and governments. . 341 Gold production 342 Gold movements . 342 Net capital movements to United States since January 2, 1935. . 343-348 Central banks 349-352 Money rates in foreign countries. 353 Commercial banks 354 Foreign exchange rates. . 355 Price movements: Wholesale prices 356 Retail food prices and cost of living. 357 Security prices 357 Tables on the following pages include the principal available statistics of current significance relating to gold, international capital transactions of the United States, and financial developments abroad. The data are compiled for the most part from regularly published sources such as central and commercial bank statements and official statistical bulletins, some data are reported to the Board directly. Figures on international capital transactions of the United States are collected by the Federal Reserve Banks from banks, bankers, brokers, and dealers in the United States in accordance with the Treasury Regulation of November 12, 1934. Back figures for all except price tables, together with descriptive text, may be obtained from the Board's publication, Banking and Monetary Statistics. 340 FEDERAL RESERVE BULLETIN GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] End of month United States 1938—D ec . . m 1939—Dec 1940—Dec 1941—Dec 1942—Dec 1943—Dec 1944—Dec. 14,512 17,644 21,995 22,737 22,726 21,938 20,619 Argentina 1 431 466 353 354 1658 1939 n 111 1945—Feb. .. . 20,506 20 419 Mar Apr. . . 20,374 20 270 Atay 20,213 June 20 152 July 20,088 Aug 20 073 Sept 20,036 Oct 20,030 Nov 20,065 Dec. 1946—Jan 20,156 End of month 1938—Dec 1939—Dec 1940—Dec. 1941—Dec 1942—Dec. 1943—Dec 1944—Dec. Hungary 409 409 409 409 409 409 409 409 407 404 Iran (Persia) 26 26 26 26 34 92 128 37 24 24 24 24 24 24 1945—Feb. Mar Apr. M^ay British Canada India Brazil 581 609 734 734 735 734 32 40 51 70 115 254 329 274 274 274 274 274 274 274 192 214 27 5 6 5 6 30 30 30 31 36 54 79 24 21 17 16 25 59 92 732 715 715 714 713 712 712 694 698 711 716 340 341 341 342 342 342 352 352 P357 P356 274 274 274 274 274 274 274 274 274 274 6 5 6 4 6 7 6 7 5 5 7 80 80 80 81 80 82 82 82 82 82 82 95 97 99 100 102 103 104 106 114 115 127 128 Italy Japan Java 193 144 120 164 164 164 5 80 90 140 235 4 216 Aug. Sept Oct. Nov.. . Dec 1946—Jan.... Sweden Switzerland Turkey 1938—Dec 1935)—Dec 1940—Dec 1941—Dec 1942—Dec 1943—Dec 1944—Dec 321 308 160 223 335 387 463 701 549 502 665 824 964 29 29 88 92 114 161 221 1945—Feb. . . Mar Apr. May . June.... Tuly Aug Sept. Oct. 475 474 472 470 478 478 479 479 475 474 482 End of month Nov Dec 1946—j a n T 1 1 052 1,061 1 072 1 103 1,105 1 069 1 073 1,084 1,085 1 111 1 109 1 104 1 099 Chile New Mexico Nether- Zealand lands 221 225 225 225 234 234 234 236 236 236 241 29 32 47 47 39 203 222 998 692 617 575 506 500 500 23 23 23 23 23 23 23 221 220 219 219 231 230 255 255 250 296 294 288 164 P128 P128 P128 P128 P131 P131 June . July Colombia Belgium 500 500 500 500 500 270 270 270 270 270 270 Cuba Czecho- Denslomark vakia 1 1 1 16 46 111 126 131 141 151 166 • 171 176 176 186 Yugoslavia B.I.S. Other countries 6 2,690 69 68 90 100 89 121 157 52 52 29 41 68 89 130 57 59 82 4 83 14 7 12 12 21 45 37 166 178 170 166 185 229 245 164 166 168 173 175 179 189 195 195 195 147 147 161 161 176 176 186 191 191 202 202 212 37 37 39 39 39 39 39 39 39 39 39 246 246 246 247 247 248 248 248 247 7 1 1 r 245 r 248 P248 p Revised. Preliminary. Figures through March 1940 and for December 1942, December 1943, and December 1944 include, in addition to gold of the Central Bank held at home, gok of the Central Bank held abroad and gold belonging to the Argentine Stabilization Fund. 2 On May 1, 1940, gold belonging to Bank of Canada transferred to Foreign Exchange Control Board. Gold reported since that time is gold held by Minister of Finance. 3 Figure for December 1938 is that officially reported on Apr. 30, 1938. 4 Figures relate to last official report dates for the respective countries, a s follows : Java— Jan. 31, 1942; Norway—Mar. 30, 1940; P(3 and—July 31, 1939; Yugoslavia—Feb. 28, 1941. 5 Figure for February 1941; beginning Mar. 29, 1941, gold reserves no longer reported separately. 6 These countries are: Albania Algeria, Austra ia, Austria through Mar. 7, 1938 Belgian Congo, Bolivia, Bulgaria, China, Costa Rica beginning July 1943, Danzig through Aug. 31, 1939, Ecuador, El Salvador, Estonia, Finland, Guatemala, Iceland, Ireland beginning February 1943, Latvia, Lithuania Morocco, and Siam. Figures for certain of these countries have been carried forward from last previous official report. 7 Gold holdings of Bank of England reduced to nominal amount by gold transfers to British Exchange Equalization tAccount during 1939. NOTE.—For back figures, see Banking and Monetary Statistics, Tables 156-160, pp. 536-555, and for a description of figures, including details regarding special internal gold transfers affecting the reported data, see pp. 524-535 in the same publication. MARCH 1946 27 28 28 28 28 28 28 61 61 61 61 61 61 61 61 61 61 61 44 44 44 44 44 44 44 44 44 44 38 52 52 52 52 52 52 52 52 52 52 1,777 1 777 1,777 1 777 Poland Portugal 4 85 84 69 69 59 59 59 60 60 28 28 28 1,777 1 777 1,540 1,540 1,090 Rumania South Africa 133 152 158 182 241 316 220 249 367 366 634 706 814 3525 834 848 851 865 878 886 909 938 954 943 914 106 108 109 109 109 109 109 108 108 108 60 60 60 60 60 60 60 60 60 60 30 30 30 30 28 28 28 28 28 28 28 28 Venezuela 29 29 29 29 29 29 29 2,430 2,709 2,000 2,000 2,000 2,000 1,777 20 20 20 21 25 31 32 Uruguay Greece 55 55 52 52 52 52 52 94 94 84 United Kingdom Germany 53 53 52 44 44 44 44 Peru 23 23 23 23 23 23 23 23 23 23 France 83 56 58 61 61 61 61 Norway 4 Egypt Spain 42 42 91 105 Governmen : gold reserves 1 not included n previous figures United End of month United King- France States dom 1938—Dec 1939—Mar 80 154 2 759 1 732 May June... Sept. Dec 1940—June Dec. .. 1941—June Dec 1942—June... Dec. .. 1943—June Dec 1944—June Dec 1945—Mar.. . June Sept 85 164 156 86 48 89 25 8 12 11 43 21 12 32 81 20 331 559 477 Bel- 44 17 3 876 292 4 151 17 17 17 17 17 17 17 17 17 17 17 17 1 Reported at infrequent intervals or on delayed basis: U. S.—Exchange Stabilization Fund (Special A/c No. 1); U. K.—Exchange Equal ization Account ; France—Exchange Stabilization Fund and Rentes Fund Belgium—Treasury. 2 Figure for end of September 3 Reported figure for total British gold reserves on Aug. 31, 1939, less reported holdings of Bank of 4England on that date. Figure for Sept. 1, 1941. NOTE.—For available back figures and for details regarding specia internal gold transfers affecting the B ritish and French institutions, see Banking and Monetary Statistics, p. 526, and BULLETIN for February 1945, p. 190. 341 GOLD PRODUCTION OUTSIDE U. S. S. R. [In thousands of dollars] Year or month 1934.. 1935.. 1936.. 1937.. 1938.. 1939.. 1940.. 1941.. 1942.. 1943.. 1944.. Estimated world production outside U.S.S.R. 1 823,003 882,533 971,514 1,041,576 1,136,360 1,208,705 1,297,349 1,288,945 Total reported monthly 708,453 752,847 833,895 893,384 958,770 ,020,297 ,094,264 ,089,395 968,112 738,471 663,960 South Africa Production reported monthly North and South America Africa MexRhoWest I Belgian United J CanColom-I Chile Africa2 | Congo^ States* \ ada 5 desia bia $1 = / J 6 / « grains of gold 9/wfine; i. e., an ounce of fine gold =$35. 12,153 6,549 108,191 104,023 23,135 12,045 8,350 13,625 7,159 126,325 114,971 23,858 11,515 9,251 16,295 7,386 152,509 131,181 26,465 13,632 9,018 20,784 8,018 168,159 143,367 29,591 15,478 9,544 24,670 8,470 178,143 165,379 32,306 18,225 10,290 28,564 8,759 196,391 178,303 29,426 19,951 11,376 32,163 3 8,862 210,109 185,890 30,878 22,117 11,999 209,175 187,081 27,969 22,961 32,414 9,259 130,963 169,446 8 30,000 20,882 6,409 29,225 48,808 127,796 19,740 19,789 6,081 35,778 101,980 18,445 19,374 7,131 366,795 377,090 396,768 410,710 425,649 448,753 491,628 504,268 494,439 448,153 429,787 1,733 1,674 1,610 1,686 1,718 1,673 1,645 1,679 1,668 1,680 1,664 /1,664 /I,664 2,828 2,463 2,342 2,446 2,328 2,563 2,516 2,078 3,528 2,926 3,836 4,020 3,832 1,610 1,610 1,575 1,610 1,610 1,575 1,575 1,610 1,610 1,610 1,610 1,400 1,470 1,162 1,882 1,379 1,382 1,836 1,736 1,460 1,518 1,459 1,400 1,319 1,224 n , 224 8,012 8,166 7,432 8,004 7,831 7,614 7,426 7,357 7,411 7,404 8,034 7,726 8,391 Austra-I British lia8 | India 1 1,166 868 807 848 1,557 3,506 5,429 7,525 8,623 7,715 7,865 24,264 25,477 28,053 28,296 28,532 28,009 29,155 27,765 26,641 23,009 20,746 53,446 34,836 55,199 36,216 50,782 33,698 54,703 36,458 54,096 35,937 53,934 36,073 53,213 35,800 53,373 36,311 53,560 34,199 52,953 35,313 55,937 36,809 P 5 5 , 0 1 7 36,005 P54.679 35,043 1944— Dec.. 1945—Tan.. Feb.. Mar.. Apr.. May. June. July. Aug.. Sept.. Oct.. Nov.. Dec. Other Nicaragua 7 506 486 372 542 526 528 574 538 464 370 425 '425 /425 30,559 31,240 40,118 46,982 54,264 56,182 55,878 51,039 42,525 28,560 16,310 11,223 11,468 11,663 11,607 11,284 11,078 10,157 9,940 8,960 8,820 6,545 765 672 590 615 560 631 574 393 595 570 559 592 634 1,470 1,470 1,260 1,365 1,225 1,190 1,295 1,400 2,065 1,190 1,190 1,470 525 560 525 595 525 350 350 490 560 490 490 490 525 n, 470 Gold production in U. S. S. R.: No regular Government statistics on gold production in U. S. S. R. are available, but data of percentage changes irregularly given out by officials of the gold mining industry, together with certain direct figures for past years, afford a basis for estimating annual production as follows: 1934, 135 million dollars; 1935, 158 million; 1936, 187 million; 1937, 185 million; 1938, 180 million. P Preliminary. / Figure carried forward. 1 Annual figures through 1940 are estimates of U. S. Mint; annual figure for 1941 based on monthly estimates of American Bureau of Metal Statistics. 2 Beginning April 1941, figures are those reported by American Bureau of Metal Statistics. Beginning January 1944 they represent Gold Coast only. 3 Beginning May 1940 monthly figures no longer reported. Annual figure for 1940 estimated at three times production for first four months of the year. * Includes Philippine Islands production received in United States. Annual figures are estimates of United States Mint. Monthly figures represent estimates of American Bureau of Metal Statistics, those for 1944 having been revised by adding to each monthly figure $59,421 so that aggregate for the year is equal to annual estimate compiled by Bureau of Mint in cooperation with Bureau of Mines. 6 Figures for Canada beginning 1944 are subject to official revision. 6 Beginning April 1942, figures no longer reported. Annual figure for 1942 is rough estimate based on reported production of $7,809,000 in first three months of year. 7 Gold exports, reported by the Banco Nacional de Nicaragua, which states that they represent approximately 90 per cent of total production. 8 Beginning December 1941, figures are those reported by American Bureau of Metal Statistics. For the period December 1941-December 1943 they represent total Australia; beginning January 1944, Western Australia only. 9 Beginning May 1940, figures are those reported by American Bureau of Metal Statistics. NOTE.—For explanation of table and sources, see BULLETIN for February 1939, p. 151; July 1938, p. 621; June 1938, p. 540; April 1933, pp 233-235; and Banking and Monetary Statistics, p. 524. For annual estimates compiled by the United States Mint for these and other countries, in the period 1910-1941, see Banking and Monetary Statistics, pp. 542-543. GOLD MOVEMENTS U N I T E D STATES [In thousands of dollars at approximately $35 a fine ounce] Net imports from or net exports (—) to: Year Total or net month imports United Kingdom 19341 1,131,994 499,870 1935 1,739,019 315,727 1936 1,116,584 174,093 1937 1,585,503 891,531 1938 1,973,569 1,208,728 1939 3,574,151 1,826,403 633,083 1940 4,744,472 3,779 982,378 1941 1,955 315,678 1942 88 68,938 1943 -845,392 -695,483 1944 160 1945 -106,250 France Belgium Netherlands Sweden 8,902 94,348 260,223 3 227,185 934,243 3,351 71,006 573,671 2 -13,710 90,859 6,461 6 81,135 15,488 163,049 60,146 3,798 165,122 341,618 28,715 241,778 977 63,260 161,489 1 1 1,747 Switzerland Canada Mexico Other Latin American Republics 28,153 30,270 86,829 12,402 29,359 13,667 95,171 968 39,966 72,648 30,790 7,511 38,482 111,480 54,452 39,485 36,472 76,315 1,363 65,231 33,610 86,987 612,949 57,020 29,880 90,320 2,622,330 128,259 16,791 899 412,056 61,862 .40,016 5 208,917 39,680 -3,287 66,920 13,489 46,210 -109,695 -108,560 15,094 -41,748 53,148 Philippine Islands 12,038 15,335 21,513 25,427 27,880 35,636 38,627 42,678 321 "io3 South Africa Australia Japan British India All other countries 4 76,820 21,095 12 1,029 28,529 75,268 65 3,498 20,856 77,892 8 23,280 8,910 181 246,464 50,762 34,713 13,301 401 168,740 16,159 39,162 74,250 22,862 165,605 50,956 t68,623 103,777 184,756 111,739 49,989 3 284,208 67,492 292,893 9,444 9,665 * 63,071 129 20,008 4,119 528 -8,731 307 152 18,365 3,572 199 -133,471 357 106 1945 June July Aug. Sept. Oct. Nov. Dec. 1946 Jan.p -83,758 -6,979 -12,339 13,496 -4,317 789 19,253 27 41 64 154,070 218 481 848 11,796 463 272 37,131 315 11,524 517 272 329 355 247 1,815 1,583 1,192 951 1,115 1,698 -18,499 151,270 391 1,729 100 2 19 11 3 3 20 22 16 11 12 15 9 -86,152 -20,589 -15,014 407 -6,236 — 1,562 297 23 654 P Preliminary. 1 Differs from official customhouse figures in which imports and exports for January 1934 are valued at approximately $20.67 a fine ounce. 2 Includes $28,097,000 from China and Hong Kong, $15,719,000 from Italy, $10,953,000 from Norway, and $13,854,000 from other countries. 3 Includes $75,087,000 from Portugal, $43,935,000 from Italy, $33,405,000 from Norway, $30,851,000 from U. S. S. R., $26,178,000 from Hong Kong, $20,583,000 from Netherlands Indies, $16,310,000 from Yugoslavia, $11,873,000 from Hungary, $10,416,000 from Spain, and $15,570,000 from other countries. 4 Includes $44,920,000 from U. S. S. R., and $18,151,000 from other countries. 6 Includes $133,980,000 to China and $509,000 from other countries. NOTE.—For back figures see Banking and Monetary Statistics, Table 158, pp. 539-541, and for description of Statistics, see p. 524 in the same publication. 342 FEDERAL RESERVE BULLETIN INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935 [Net movement from United States, (—). In millions of dollars] TABLE 1.—TOTAL CAPITAL MOVEMENT, BY TYPES Increase in foreign banking funds in U. S. Total From Jan. 2, 1935, through— Total Official Other Decrease in U. S. banking funds abroad Foreign securities:. Return of U. S. funds Domestic securities: Inflow of foreign funds Inflow in brokerage balances 259.5 616.0 899.4 1,412.5 57.7 213.8 350.7 603.3 -2.0 -4.5 9.8 59.7 207.7 355.2 593.5 155.0 312.8 388.6 361.4 31.8 43 7 40.1 125.2 -6.2 15.8 90.3 316.7 21.1 29.8 29.8 6.0 1,511.1 1,949 2 2,283.3 2,608.4 578.4 779 0 898.5 930.5 44.4 35.9 37.4 81.1 534.0 743.1 861.1 849.4 390.3 449.0 456.2 431.5 114.4 180 5 272.2 316.2 427.6 524.1 633.3 917.4 .4 16.5 23.2 12.9 2,931.4 3,561.9 3,911.9 3,410.3 1,121.6 1,612.4 1,743.6 1,168.5 62.8 215.3 364.6 243.9 1,058.8 1,397.1 1,379.0 924.6 411.0 466.4 518 1 449.1 319.1 395.2 493 3 583.2 1.075.7 L,069.5 1,125.1 L.162.0 4.1 18.3 31.9 47.5 1938—Mar. 30 June 29 Sept. 28 Dec. (Jan. 4, 1939) 3,207 2 3,045.8 3,472 0 3,844.5 949.8 786.2 1,180.2 1,425.4 149.9 125.9 187.0 238.5 799.9 660.4 993.2 1,186.9 434 4 403.3 477 2 510.1 618 5 643.1 625 0 641.8 L,150.4 1,155.3 ,125.4 ,219.7 54.2 57.8 64.1 47.6 1939—Mar June Sept Dec. 4,197.6 4,659.2 5,035.3 5,021.2 1,747.6 2,111.8 2,479.5 2,430.8 311.4 425.3 552.1 542.5 1,436.2 1,686.5 1,927.3 1,888.3 550.5 607 5 618.4 650.4 1 ,188.9 1 ,201.4 1 ,177.3 1 ,133.7 63.9 74.0 83.1 80.6 5,115.9 5,440.7 5,748.1 5,727.6 2,539.0 2,830.1 3,092.8 3,159.0 539.1 922.3 1,112.3 1,200.8 1,999.9 1,907.8 1,980.5 1,958.3 631.6 684 1 773.6 775.1 646.7 664.5 676.9 725.7 761.6 785 6 793.1 803.8 1,095.0 1 L,042.1 987.0 888.7 88.7 98.9 101.6 100.9 5,526.5 5,575.4 5,510 3 5,230.7 3,148 8 3,193.3 3,139 5 2,856.2 1,307.7 1,375.1 1,321.7 1,053.7 1,841.0 1.818.2 1,817 7 L,802.6 767 4 818.6 805 3 791.3 812 7 834.1 841 1 855.5 701.8 631.2 623.5 626.7 95.9 98.2 100.9 100.9 1942—Mar (Apr. 1) June 30 2 Sept. 30 Dec. 31 5,082.4 5,495.3 5,654.9 5,835 0 2,684.0 3,075.9 3,212.6 3,320.3 932.0 1,211.7 1,339.1 1,412.0 1,752.0 1,864.2 1,873.5 L.908.3 819.7 842.3 858.2 888.8 849.6 838.8 830.5 848 2 624.9 632.0 646.1 673.3 104.3 106.2 107.5 104.4 1943—Mar. 31 June 30 Sept. 30 Dec. 31 1944—j an . 3i Feb. 29. Mar. 31 Apr. 30 May 31 June 30 6,147.1 6,506.4 6,771.3 7,118 6 3,643.4 4,002.6 4,130.6 4,496.3 1,723.1 2,071.4 2,190.9 2,461.5 1,920.3 1,931.2 1.939.7 2,034.8 898.7 896.9 888.6 877.6 810.5 806.8 929.3 925 9 685.9 687.9 708.1 701.1 108.6 112.1 114.8 117.8 7,272.9 7 418 6 7,462.9 . 7,464 3 7,458.9 7,459.6 4,658.2 4 833 2 4,885.4 4,881 0 4,882.7 4,851.7 2,649.3 2,815.7 2,856.0 2,780.5 2,726.8 2,661.4 2,009.0 2,017.5 2,029.4 2,100.6 2,155.9 2,190.3 870.8 843 5 868.0 873 4 872.9 856.6 931.7 924 2 904.1 905 4 903.2 929.8 695.1 698.8 685.8 686.2 680.1 702.4 117.0 118.9 119.6 118.3 119.9 119.1 July 31 Aug 31 Sept. 30 Oct. 31 Nov. 30 Dec. 31 1945—jan 3i Feb. 28 Mar. 31 Apr 30 May 31 June 30 7,423 4 7 440 9 7,430.9 7,460 2 7,530.5 7,475.7 4,740.8 4 732 3 4,661.2 4,680 3 4,775.1 4,612 5 2,622.9 2 589 5 2,498.8 2,489.8 2,541.0 2,372.2 2,117.9 2,142.8 2,162.3 2,190.4 2,234.1 2,240.3 850.6 869 7 883.5 891.3 872.7 805.8 1,005.8 1 009 7 1,026.2 1,025 8 1,025.3 1,019.4 706.9 709.4 737.8 735.8 732.4 911.8 119.3 119.9 122.2 127.1 125.0 126.3 7 633 1 7,755.4 7,739 1 7 797 3 7,857.7 8,071 9 4 723 9 4,887.3 4,909 9 4 958 2 5,004.5 5,261.4 2 468 7 2,587.3 2,555.6 2 588 9 2,634.0 2,903.6 2,255.2 2,300.0 2,354.3 2,369.2 2,370.5 2,357.9 848 2 859.8 848.5 844 7 845.7 760.4 1,025 9 1,033.4 1,029.6 1,061 6 1,088.9 1,069.9 909.0 845.0 820.6 802.5 785.0 848.4 126.1 129.9 130.5 130.4 133.6 131.8 3 078 8 3,096.2 3,107.5 33,110.0 2,363.9 2,408.8 2,487.2 32,620.9 810 2 ••829.0 f-865.3 3875.5 1 073 7 1,058.4 ''1,056.9 1,005.2 843.2 831.6 818.4 795.1 127.1 129.1 134.6 3134.4 1935—Mar. June Sept. Dec. (Apr. 3) (July 3) (Oct. 2) (Jan. 1, 1936) 1936—Mar. June Sept. Dec. (Apr. 1) d u l y 1) 30 30.. 1937—Mar. 31 . . . . , June 30 Sept. 29 Dec 29 29 28.... 27 (Jan. 3, 1940) . . . 1940—Mar. (Apr. 3) Tune (Tuly 3) . Sept. (Oct. 2) Dec. (Jan. 1, 1941) 1941—Mar. (Apr. 2) June (July 2) Sept (Oct. 1) Dec. 31 July Aug Sept Oct 31 31 30 31 , . 8 296 8 ••8,353 2 »8 469 9 * 8,541.1 5 442 6 5,505.0 5,594 8 35,731.0 6.1 r 1 Revised. This category made up as follows: through Sept. 21, 1938, funds held by foreign central banks at the Federal Reserve Bank of New York; beginning Sept. 28, 1938, also funds held at commercial banks in New York City by central banks maintaining accounts at the Federal Reserve Bank of New York; beginning July 17, 1940, also funds in accounts at the Federal Reserve Bank of New York which had been transferred from central bank to government names; beginning with the new series commencing with the month of July 1942, all funds held with banks and bankers in the United States by foreign central banks and by foreign central governments and their agencies (including official purchasing missions, trade and shipping missions, diplomatic and consular establishments, etc.). 2 The weekly series of capital movement statistics reported through July 1, 1942, was replaced by a monthly series commencing with July 1942. Since the old series overlapped the new by one day, the cumulative figures were adjusted to represent the movement through June 30 only. This adjustment, however, is incomplete since it takes into account only certain significant movements known to have occurred on July 1. Subsequent figures are based upon new monthly series. For further explanation, see BULLETIN for January 1943, p. 98. 3 Amounts outstanding Oct. 31, in millions of dollars: total foreign banking funds in United States, 6,396.8, including official funds, 3,747.6 and other funds, 2,649.2; United States banking funds abroad, 260.0; and brokerage balances (net due "foreigners"), 57.5. NOTE.—Statistics reported by banks, bankers, brokers, and dealers. For full description of statistics see Banking and Monetary Statistics, pp. 558-560; for back figures through 1941 see Tables 161 and 162, pp. 574-637, in the same publication, and for those subsequent to 1941 see BULLETIN for September 1945, pp. 960-974. MARCH 1946 343 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935—Continued [Net movement from United States, (—). In millions of dollars] TABLE 2.—TOTAL CAPITAL MOVEMENT, BY COUNTRIES From Jan. 2, 1935, through— Total United King- France dom Netherlands Switzerland 5 7 9 6 3 130. 4 335. 5 607. 5 557. 5 773. 0 123 9 140 5 165 9 24 . 0 45 .6 22 . 1 32 .2 58 . 0 130 . 0 228 .5 312 .2 472 . 0 752 .9 1,200.6 2,051.3 2,653.0 3,054.2 3,790.1 150.5 106.3 155.3 229.4 70.9 201.2 410.6 384.6 483.4 455 6 922 .7 891 . 8 850 . 9 954 . 8 4,056.6 3,626.3 3,608.1 4,192.8 411.7 340.5 425.1 760.3 606.8 562.3 90.2 567.5 567.7 128.6 835.8 787.7 178.3 951.0 1,013.1 201.4 Germany Italy 1935—Dec. 1936—Dec. 1937—Dec. 1938—Dec. 1939—Dec. (Jan 1, 1936). . 30 29 (Jan. 4, 1939). . (Jan. 3, 1940). . 1,412.5 2,608.4 3,410.3 3,844.5 5,021.2 554.9 829.3 993.7 1,183.8 1,101.3 210.2 299.5 281.7 339.6 468.7 114 229 311 328 470 1940—Dec. 1941—Dec. 1942—Dec. 1943—Dec. (Jan. 1, 1941). . . 5,727.6 31 5,230.7 31 5,835.0 31 7,118.6 865.2 674.1 837.8 1,257.7 670.3 639.9 625.9 636.8 464. 4 474. 0 487. 7 911. 5 725. 7 592. 1 629. 1 175 179 179 178 9 9 5 6 55 . 4 50 .5 48 . 1 48 .2 1,078.8 1,090.0 1,008.6 1,053.6 1,048.9 1,026.0 1,029.3 1,066.2 1,075.0 1,018.8 946.7 937.8 635.2 585.7 566.6 558.3 506.5 477.6 453.0 521.7 542.4 499.8 463.9 510.9 502. 7 506. 2 503. 3 506. 3 505. 7 506. 3 506. 8 513. 0 516. 1 518. 1 518. 1 523. 8 654. 4 664.3 659. 6 666. 4 673. 0 670. 7 677. 1 679. 7 689. 9 695. 6 698. 4 705. 2 179 0 179 1 61 . 5 63 . 1 66 . 7 69 . 8 72 . 0 75 .5 1944—Nov. 30 Dec. 31 1945—Jan. 31 Feb. 28 Mar. 31 Apr. 3 0 . . . May 31 June 30 July 31 Aug. 31 Sept. 30 Oct. 31 7,530.5 7,475.7 7,633.1 7,755.4 7,739.1 7,797.3 7,857.7 8,071.9 8,296.8 '•8,353.2 '8,469.9 8,541.1 36 6 83.1 179.0 179 179 179 179 179 179 179 179 179 0 2 2 0 0 0 2 3 5 77.5 80 . 0 85 .2 89 .6 94 .2 98 . 0 Other Total Europe Europe Canada Latin 1 America Asia (2) 128.3 184.0 224.6 214.2 431.0 982.7 4,094.2 1,015.6 1 ,194.7 1,062.7 4,081.8 976.4 1 ,193.7 1,020.9 3,949.0 1,030.8 1 ,250.2 1,199.2 4,003.9 1,081.3 1 ,262.4 1,200.1 3,952.9 1,135.4 1 ,234.2 1,205.3 3,925.8 1,194.9 1 ,263.0 1,202.9 3,926.4 1,204.7 1 ,324.3 1,193.8 4,057.5 1,276.7 1 ,353.8 1,175.5 4,140.6 1,361.4 1 ,411.7 1,175.5 4,060.2 r1,441.8 'r 1.392.1 1,238.7 4,034.8 l,469.9 l,413.3 1,316.3 4,073.2 1,477.9 1 ,404.7 1,321.3 993 . 3 965 .2 970 .5 967 . 6 990 .5 1 ,003 . 6 1 ,017 . 9 1 ,053 . 0 1 ,059 .2 1 ,134 .2 1 ,118 . 1 All other1 12.7 21.4 15.9 36.2 87.4 163.3 203.0 204.1 207.7 211.4 210.7 208.5 208.4 207.6 220.3 235.2 264.1 TABLE 3.—INCREASE IN FOREIGN BANKING FUNDS IN U. S., BY COUNTRIES From Jan. 2, 1935 ,through— Total United King- France dom Netherlands Switzerland Germany Italy Latin Other CanTotal 1 Europe Europe ada America Asia 60.7 79.7 109.4 208.6 470.0 1935—Dec. 1936—Dec. 1937—Dec. 1938—Dec. 1939—Dec. 603.3 (Jan. 1, 1936)... 30 930.5 1,168.5 29. . (Jan. 4, 1939)... 1,425.4 (Jan. 3, 1940). . . 2,430.8 128.6 163.5 189.3 364.0 376.1 129.6 144.2 111.8 155.3 256.1 55.7 65.9 76.3 87.9 190.9 -.8 72.4 2.7 109.8 9.6 288.4 205.1 - 1 1 . 8 362.7 - 2 0 . 1 7 .3 23 .0 6 .9 1 .7 19 .7 1940—Dec. 1941—Dec. 1942—Dec. 1943—E>ec# (Jan. 1, 1941)... 3,159.0 2,856.2 31. . . 3,320.3 31 4 496.3 31. . . 293.3 328.6 493.3 939.4 458.0 416.5 394.5 404.1 160.3 161.0 170.0 176.7 494.7 - 2 2 . 9 326.2 - 2 3 . 1 166.3 - 2 2 . 7 192 7 - 2 3 . 7 .9 - 3 .4 - 6 .2 -6 9 789 7 804 4 726 4 777 0 772 9 758 s 770 7 800. s 413.8 356 6 338.9 329 6 286.4 258 3 235.0 292.2 318 8 276.6 233.3 280.2 190 1 193 1 190 0 192 6 192 2 192 ? 192 7 196. 7 214.4 221 4 219.8 227 1 234.5 234.1 240.1 243.2 250 6 255.8 259.7 266.5 -23.6 —23.4 -23.4 —23.4 -23.3 -23.3 -23.5 -23.5 -23.5 -23.4 -23.4 -23.2 5.7 70 10 .7 1944—Nov. 30. . Dec. 3 1 . 1945—Jan. 31 Feb. 28. . . Mar. 31 Apr. 30. . . May 31. . June 30. . . July 31. . . Aug. 31 Sept. 30. Oct. 31 4,775.1 4 612 5 4,723.9 4 887 3 4,909.9 4,958 2 5,004.5 5,261.4 5,442 6 5,505.0 5,594.8 5,731.0 810 6 762 6 684 8 678 9 199 ? 201 4 204 0 211 4 n 15 .7 19 1 22 .5 ?S 6 29 ? 33 .6 38 .2 41 .7 All other1 453.5 588.9 791.7 1,010.7 1,655.4 46.0 86.8 76.3 101.6 174.5 33.5 149.3 166.3 127.6 215.1 58.8 90.4 126.2 163.3 325.4 11.5 15.2 8.0 22.2 60.5 603.7 1,986.3 561.1 1,766.9 502.5 1,697.5 589.0 2,271.2 334.1 273.1 399.5 704.7 326.4 296.7 482.8 578.7 450.9 418.0 598.7 779.7 61.3 101.6 141.9 162.0 2,181.2 2,193.7 2,032.9 2,093.2 2,061.3 2,045.9 2,057.3 2,202.7 2,291.7 2,179.0 2,141.4 2,185.4 848.7 818.6 868.1 962.3 1,021.2 1,056.8 1,053.4 1,159.3 1,241.8 1,341.9 1,384.1 1,443.9 784.8 794.7 848.7 855.4 842.5 872.0 913.5 955.4 979.2 965.8 989.0 976.2 828.9 635 9 804.5 803 8 809.3 808.3 807.7 770.5 757.6 834.7 882.5 899.8 131.5 169 7 169.7 172 5 175.7 175 2 172.7 173.5 172 3 183.6 197.6 225.7 1 Latin Canada America Asia All other* 591 634 570 576 582 606 619 670 0 7 5 7 8 8 7 0 706 8 672 4 744 8 729 9 TABLE 4.—DECREASE IN U. S. BANKING FUNDS ABROAD, BY COUNTRIES From Jan. 2, 1935, through— Total United King- France dom Netherlands 1935—Dec. (Jan. 1, 1936) 1936—Dec. 30 1937—Dec. 29 1938—Dec. (Jan. 4, 1939) 1939—Dec. (Jan. 3, 1940) 361.4 431.5 449.1 510.1 650.4 208.8 178.0 207.4 206.2 252.2 48.1 62.0 65.3 68.4 73.8 1940—Dec. (Jan. 1, 1941) 1941—Dec. 31 1942—Dec. 31 1943—Dec. 31 775.1 791.3 888.8 877.6 269.2 271.2 279.4 272.1 872.7 805.8 848.2 859.8 848.5 844.7 845.7 760.4 810.2 '829.0 '865.3 875.5 267.4 266.1 266.2 264.6 268.8 266.6 261.5 264.1 267.2 260.4 267.1 270.5 1944—Nov. 30 Dec. 31 1945—Jan. 31 Feb. 28 Mar. 31 Apr. 30 May 31 June 30 July 31 Aug. 31 Sept. 30 Oct. 31 Switzerland Germany Italy -3.3 -4.4 -5.6 12.9 1.6 2.7 2.6 2.6 2.9 29.7 66.0 105.1 141.7 177.8 13.7 16.3 74.6 76.9 77.8 77.9 17.7 17.6 18.1 18.3 6.5 5.4 6.6 5.1 77.7 77.7 77.6 77.6 77.6 77.6 77.8 77.8 77.8 77.8 77.8 78.1 18.3 18.3 18.3 18.3 18.3 18.1 18.2 18.0 18.3 18.2 18.0 18.0 4.8 6.8 6.2 7.3 7.2 7.2 7.3 2.7 4.5 6.1 5.4 5.1 -.4 Other Total Europe Europe 20.1 37.3 24.9 30.4 51.6 18.7 66.8 -46.5 52.6 -21.5 -1.6 -4.4 -8.7 -7.0 60.3 62.7 58.6 55.1 43.2 17.7 68.3 55.7 34.8 64.7 93.8 102.7 2.1 -1.2 6.6 64.9 64.8 61.8 68.1 69.0 69.9 67.3 39.1 47:7 51.4 53.3 60.7 51.2 37.0 36.1 40.7 23.9 23.0 40.1 23.5 58.2 '51.4 '47.4 54.4 96.0 77.7 87.6 88.2 88.1 86.4 77.9 79.9 81.4 68.4 98.3 91.7 -1.6 13.7 15.5 22.0 26.9 33.8 28.4 310.2 343.7 409.3 460.9 563.5 -4.6 36.9 -21.7 35.9 56.5 191.6 196.8 196.7 196.9 25.3 25.8 26.2 26.2 49.8 53.6 56.8 60.0 634.7 647.4 661.5 656.5 196.9 196.9 196.9 196.9 196.9 196.9 196.9 196.9 196.9 196.9 196.9 196.9 26.2 26.2 26.2 26.2 26.2 26.2 26.2 26.2 26.2 26.2 26.2 26.4 70.9 34.6 70.7 70.3 70.4 70.6 70.1 30.9 30.3 69.4 70.9 69.4 662.2 626.6 662.0 661.2 665.3 663.3 658.0 616.5 621.2 655.0 662.5 664.4 6.5 8.8 7.5 .8 1.7 2.2 2.1 2.4 1.5 1.8 2.9 3.8 4.2 ' Revised. * Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other." * Inflow less than $50,000. 344 FEDERAL RESERVE BULLETIN INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935—Continued [Net movement from United States, (—). In millions of dollars] TABLE 5.—FOREIGN SECURITIES: RETURN OF U. S. FUNDS, BY COUNTRIES (Net Purchases by Foreigners of Foreign Securities Owned in U. S.) From Jan. 2, 1935,through— 1935—Dec. 1936—Dec. 1937—Dec. 1938—Dec. 1939—Dec. (Jan. 30. . . 29 United King- France dom Netherlands' Switzerland Germany Italy Other Europe 7. 4 10. 4 21. 27. 3 29. 4 31. 0 31 s -1.2 13.7 30.4 36. 1 45. 0 13.3 22.5 26.6 33.5 36.6 2.9 9.4 13.5 22.0 27.6 46 1 87. 9 115. 167. 8 189. 0 46. 0 44 44. 7 28.1 28.1 28.0 27.9 196 4 201. 8 33. 0 36.5 36.5 36.5 36.5 210 1 143. 1 - 3 9 .7 1 .7 278 3 10 S 366. 4 440. 6 - 9 .7 495. 2 - 7 .6 25 .0 510 0 521 3 4 - 3 0 526 3 530 3 41 .2 1942—Dec. 31. . 1943—Dec. 31 30 31 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 27.7 27.6 27.6 27.6 27.6 27.6 27.6 27.6 27.6 27.6 27.6 27.6 210 4 210 4 210 4 530 530 528 31. . 28 31 . 30 31 . June 30. . July 3 1 . . 31 Sept. 30 Oct. 31. . 125. 2 316. 2 583 9 641. 8 725. 7 67 .8 116 .1 136 8 127 .7 125 .5 6 .8 18 .2 22 8 26.1 42.1 803. 8 855 848. 9 925. 9 128 .6 127 6 43.4 51 6 4 S? 4 127 .6 50 .6 1 025 1,019. 4 1,025 9 1 033 1,029 6 1 061 6 1,088. 9 1,069. 9 1,073. 7 1 058 r l,056 9 1,005 2 1, 1936)... (Jan. 4, 1939)... (Jan. 3, 1940). . . 1940—Dec. (Jan. 1, 1941). . . 1941—Dec. 31 1944—Nov. Dec. 1945—j a n . Feb. Mar. Apr. May Total 127 0 126 .5 124 8 9 125 0 121 6 120 8 118 9 119 0 119 o 119 1 119 .2 31. 6 44. 9 50 9 51.0 510 33. 6 33. 6 33. 6 44. 4 44. 5 44. 51 9 S1 4 51 SI 2 S1 3 S1 51 9 S1 9 51 . 1 33 33. 33 33. 33. 33. 33 33 33 6 6 5 S s 7 44 7 44. 7 44 7 44. 5 44. 7 45 0 45 0 45 45 5 207 6 210 210 •^ 210 1 210 0 210.1 210 210 210 211 1 1 9 1 Total Europe 4 1 4 529 1 528 0 525 4 524 1 577 S 522 8 522 9 523 9 524 . 6 Canada in 5 104 .9 111 S 118 1 in 9 147 1 171 4 15? 0 1 1S5 7 8 82 . 1 1 Latin America Asia All other1 12 .7 15 .7 0 m .4 1 67 184 .0 7 .9 17 .0 ?4 S 33 .8 42 .8 1.1 3.5 6 8 9.7 11.3 202 .3 53 .0 61 13.5 16 6 18.0 19.9 1 ?4e> 4 272 .3 62 .2 ?99 0 302 . 0 303 61 4 61 .3 61 3 7 30S 1 306 1 310 4 317 4 314 7 S16 317 6 314 . 9 61 s 61 5 61 5 61 7 61 7 61 7 61 7 61 8 61 . 8 21 1 21.0 21.1 21 0 21.1 21 2 21.2 21.3 21.3 21 7 21.8 21.9 1 Latin America Asia All other1 s 61.9 TABLE 6.—DOMESTIC SECURITIES: INFLOW OF FOREIGN FUNDS, BY COUNTRIES (Net Purchases by Foreigners of U. S. Securities) * From Jan. 2, 1935, through— 1935—Dec. 1936—Dec. 1937—Dec. 1938—Dec. 1939—Dec. Total (Jan. 1, 1936). . . 316.7 30 917.4 29 1,162.0 (Jan. 4, 1939). . . 1,219.7 (Jan. 3, 1940) . . . 1,133.7 United King- France dom Netherlands Switzerland Germany Italy Other Europe Total Europe -.1 -3.3 -4.9 -5.5 -4.9 12.9 38.5 55.7 56.6 60.4 286.2 818.0 1,041.6 1,094.1 1,004.4 2.8 32.6 37.6 25.7 -2.6 3.7 15.5 18.2 23.7 30.1 21.4 44.1 54.7 65.2 87.6 2.6 7.1 9.8 11.1 14.3 2.7 64.9 67.3 75.3 86.3 851.3 615.0 644.7 645.7 -18.4 -44.7 -45.1 -58.2 25.6 28.1 35.2 40.5 17.6 17.5 27.7 62.5 12.6 10.9 10.9 10.6 100.5 103.2 103.0 102.4 93.7 92.5 93.5 96.4 95.3 96.5 96.4 96.4 626.3 633.7 629 0 621.4 598 9 591.2 585 9 611.0 602 1 600.0 600.8 592.4 -28.2 -28.1 -27.4 -84.2 -85.7 -95.9 -106.7 -91.7 -98.5 -105.4 -117.9 -126.4 53.3 54.9 55.7 55.4 55.2 55.1 52.8 58.5 57.2 56.1 55.1 54.6 70.4 240.5 241 1 241.9 241 7 241.9 242 7 260.4 272 2 270.9 270.6 264.4 10.6 10.7 10 7 10.6 10 5 10.3 10 3 10.3 10 2 10.0 9 8 10.0 Latin America Asia* All other1 149.8 367.7 448.7 472.6 328.1 23.4 64.7 70.3 76.9 76.6 50.5 157.6 213.8 212.1 227.7 55.1 200.2 275.3 304.1 344.7 -5.4 -7.5 -17.4 -22.8 -28.2 74.4 74.9 80.5 82 7 70.0 77.3 77 2 76.9 68 0 67.1 66 4 77.6 71 7 71.1 78 5 78.3 233.2 236.7 236.9 239.9 348.1 336.4 360.5 367.3 -29.1 -30.1 -30.9 -30.8 239.4 239.0 239 0 239.1 239 1 239.4 239 3 241.3 240 9 240.7 237.8 235.5 369.2 - 3 0 . 8 368.5 - 3 0 . 8 366 1 - 3 0 . 8 363.3 - 3 0 . 8 362 2 —30.8 360.1 - 3 0 . 8 359 4 - 3 0 . 7 363.1 - 3 0 . 7 363 5 - 3 0 . 7 362.0 - 3 0 . 7 360.2 - 3 0 . 7 360.9 - 3 0 . 7 1940—Dec. (Jan. 1, 1941). . . 1941—Dec. 31 1942—Dec. 31 1943—Dec. 31 888.7 626.7 673.3 701 1 157.1 -70.1 -77.6 — 100 3 1944—Nov. 30 Dec. 31 1945—Jan. 31 Feb. 28. Mar. 31 Apr. 30 May 31 June 30 July 31 Aug. 31 Sept. 30 Oct. 31 732.4 911.8 909 0 845 0 820 6 802 5 785 0 848.4 843 2 831.6 818 4 795.1 -123.5 -125.4 — 127 4 -131.7 — 135 4 — 139.2 — 142 8 -138.9 — 140 3 -141.5 — 143 4 -149.9 -i -!i .6 1.5 1.9 1.8 2.1 2.1 2.2 .8 2.2 1.9 1.8 1.8 1.9 Canada TABLE 7.—INFLOW IN BROKERAGE BALANCES, BY COUNTRIES (The Net Effect of Increases in Foreign Brokerage Balances in U. S. and of Decreases in Balances Held by Brokers and Dealers in U. S. with Brokers and Dealers Abroad) Germany Italy 1.3 — .9 5.0 6.8 9.3 2.5 9 1 10.8 9.6 17.8 -.2 9 -.1 .1 .3 .1 .2 .1 1.4 .4 5.0 5.2 5.0 7.6 22.6 44.0 47.9 71.6 -4.5 -7.6 3.5 1.8 8.7 1.0 —4 2 -.5 -.9 1.6 2.9 2 1 .5 -1.5 -3.4 19.9 19.9 20.7 21.5 13.4 17.6 17.5 19.9 16.2 13.5 13.7 19.3 -.2 -.2 — .1 -.2 .2 .2 .2 .3 7.9 8.0 8.7 9.4 74.3 75.7 78 1 89.1 10.7 14.1 15.2 17.6 9.2 3.9 4.2 3.8 6.0 6.3 6 0 6.0 22.7 23.1 21.9 22.9 23.1 23 1 22.6 22.8 22 8 23.1 23 1 23.2 21.3 22 3 22.4 22.7 22.6 23 0 23.1 23.5 24.2 24.4 24 7 25.2 21.6 23.0 22.9 23.9 24.5 24 7 25.8 26.0 26.4 26.6 27.8 27.3 -.1 .3 .3 10.0 10.5 10.6 10.8 10.5 10 5 10.3 10.6 10.6 10.8 11.1 11.3 94.1 97.7 96.6 99.0 99.4 100 0 101.1 104.8 102.7 103.4 106.1 106.4 16.7 16.2 16.7 17.0 17.0 17 0 19.3 17.9 17.3 18.2 18.6 17.6 6.4 5.1 6.0 5.6 6.3 4.7 Total 1935—Dec. (Jan. 1, 1936) . . . 1936—Dec. 30 . . 1937—Dec. 29 1938—Dec. (Jan. 4, 1939). . . 1939—Dec. (Jan. 3, 1940). . . 6.0 12 9 47.5 47.6 80.6 4 0 11.5 13.4 19.4 2.4 10.4 11.5 12.9 20.1 100.9 100.9 104 4 117.8 17.0 16.8 17 4 18.8 125.0 126 3 126.1 129.9 130 5 130 4 133 6 131.8 127 1 129.1 134 6 134.4 18.2 18 5 18.5 18.6 18.6 18 4 19.1 21.7 18.5 18.2 19 1 19.1 1940—Dec. 1941—Dec. 1942—Dec. 1943—Dec. (Jan. 1, 1941). . . 31 31 . 31 1944—N OV . 30 Dec. 31 1945—j a n . 31 Feb. 28 . Mar. 31 Apr. 30 May 31. . . . June 30 July 3 1 . . . Aug. 31 Sept. 30 Oct. 31 r 1 2 Netherlands Switzerland United King- France dom From Jan. 2, 1935, through— — .7 (3) -.2 -.2 -.1 .3 .3 j .3 .3 -.1 1 (2) .3 .3 .4 .4 .4 .4 Other Total Europe Europe Canada -.9 (3) .3 2.1 .7 8 9 1.3 7.5 3.9 2.3 4.5 4.5 3.0 2.7 3.2 3 2 1.8 1 8 1 8 1.9 1 9 1 9 1 9 1.9 1 9 2 0 22 3.6 2.2 7.2 7.5 70 4.1 2.3 4.8 4.7 4 4 Revised. Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other." 3 Inflow less than $50,000. Outflow less than $50,000. MARCH 1946 345 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued SHORT-TERM FOREIGN LIABILITIES AND ASSETS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES [In millions of dollars] LIABILITIES NethUnited erKing- France lands dom Switzerland Germany Italy Other Total Can1 Latin Europe Europe ada America Asia 76.9 205.5 235.7 261.5 436.1 33.9 163.5 176.3 143.9 187.4 12.9 68.6 78.8 89.1 101.8 13.7 86.1 123.5 302.1 218.8 29.9 29.0 32.0 39.0 17.8 18.8 26.1 41.7 25.7 20.4 46.8 232.9 107.5 686.3 126.3 814.3 156.0 1,017.1 255.5 1,237.8 99.3 145.3 186 1 175.6 201.8 122.8 156.3 263 9 280.9 248.5 130.1 188.9 200 2 236.0 274.3 1939—Dec. (Jan. 3, 1940). . . 1940—Dec. (Jan. 1, 1941). . . 1941—Dec 31 1942—Dec 31 1943—Dec. 31 448.2 3,057.0 3,785.2 365.5 3,482.4 400.8 3,987 5 554 6 5,153.7 1,000.8 288.2 490.1 448.6 432.3 439.9 204.9 174.3 174.9 186.6 193.3 376.3 508.4 339.9 184.2 210.6 9.5 6.7 6.6 7.5 6.5 38.5 17.9 15.4 12.1 11.3 516.9 1,882.6 650.6 2,213.5 608.0 1,994.0 643.4 2,020.7 722.1 2,584.5 274.6 434.3 373.2 507 4 812.6 336.0 447.3 417.7 597 7 693.7 491.4 72.5 616.9 73.3 583.9 113.6 712 1 149 6 887.6 175.3 1944— Nov 30 Dec. 31 5,432.0 5,269.4 851.0 449.6 865.7 392.3 206.7 209.7 232.3 239.3 6.7 6.8 24.0 25.3 724.0 2,494.4 767.7 2,506.9 956.6 926.5 899.4 909.3 936.8 144.7 743.8 182.9 Dec. 312 1945—Jan. 31 5,271.4 5,382.8 865.7 401.2 787.8 383.6 209.7 206.6 239.3 237.8 6.8 6.8 27.3 31.0 767.7 2,517.8 703.6 2,357.1 926 5 976.0 909 3 963.3 743 8 174.0 912.4 174.1 Jan 312 Feb. 28 Mar 31 Apr. 30 May 31 June 30 July 31 Aug. 31 Sept 30 Oct. 31 5,389.7 5,553.1 5,575.7 5,624.0 5,670.4 5,927.3 6,108.5 6,170.8 6,260 6 6,396.8 787.8 838.3 834.2 819.9 832.1 861.8 872.0 824.0 746 2 740.2 419.0 409.8 366.6 338.5 315.1 372.3 399.0 356.7 313.4 360.3 206.6 209.3 208.8 208.8 209.3 213.3 215.8 218.0 220.6 228.1 237.8 245.0 252.5 252.0 258.0 261.2 268.5 273.8 277.7 284.4 6.8 6.8 6.9 7.0 6.7 6.7 6.8 6.9 31.0 33.8 36.0 39.4 42.9 43.9 49.5 53.9 58.5 62.0 703.6 709.8 715.8 739.9 752.7 803.0 839.8 805.4 877.9 862.9 Date Total 1934—Dec. (Jan. 2, 1935). . . 1935—Dec. (Jan. 1, 1936). . . 1936—Dec. 30 1937—Dec 29 1938—Dec. (Jan. 4, 1939). . . 597.0 1,200.2 1,491.6 1,729.6 1,996.6 •. . 6.9 7.1 2,392.5 2,452.8 2,420.8 2,405.5 2,416.9 2,562.3 2,651.3 2,538.6 2,501 0 2,545.0 976.0 1,070 3 1,129.1 1,164.8 1,161.3 1,267.3 1,349.8 1,449.9 1,492 1 1,551.8 970.2 912.4 976 9 911 7 964.0 917.2 993 5 916 2 1,035.0 915.6 1,076 9 878 4 1,100.7 865.5 1,087.4 942 6 1,110 6 990 4 1,097.7 1,007.7 All other1 12.0 23.4 27.1 20.0 34.1 138.6 141.4 144.5 144.1 141.6 142.4 141.2 152.5 166 5 194.6 LIABILITIES—SUPPLEMENTARY DATA Other Europe Belgium Denmark Finland 1939—Dec. (Jan. 3, 1940). . 516.9 1940—Dec. (Jan. 1, 1941). . 650.6 1941—Dec 31 608.0 643 4 1942—Dec. 31 1943—Dec. 31 722.1 159.2 144.8 117.3 121 8 122.9 28.1 17.3 18.1 17 7 13.9 21.4 16.5 5.7 79 7.7 1944—Nov. 30 Dec 31 1945—jan# 3i Feb. 28. Mar. 31 Apr. 30 May 3 1 . . . June 30 July 31 Aug. 31 . Sept. 30 Oct. 31 124 3 124.3 121.8 123.5 133.7 139.7 147 3 142.1 150.5 149 9 218 6 195.6 13 4 14.8 14.4 14.2 14.4 13.7 13.4 13.7 13.7 14 4 16 8 20.1 71 7.1 7.0 6.6 7.1 7.0 6.8 6.7 6.6 6.7 72 Date Other Europe 724 0 767.7 703.6 709.8 715.8 739.9 752 7 803.0 839.8 805 4 877 9 862.9 6.7 Greece* Luxembourg3 Norway 39.3 43.5 18 3 18.4 56 3 48.7 65 2 132.4 158.9 48.7 48.7 48.7 48.6 50.6 52.5 53.7 56.6 60.5 63.2 66.1 68.7 18 5 18.6 18.5 18.6 18.6 18.5 19.1 19.3 22.9 22.9 22 9 22.9 Yugo- All RuPortugal" mania* Spain* Sweden USSR" slavia8 other 186.6 220.8 185.4 187.2 194.7 199.9 194.0 240.6 236.6 187.1 184.4 182.7 35.7 53.4 9.4 9.3 49.8 54.5 42.0 41.3 35.4 39.4 36.6 40.6 46.4 39.0 45.5 45.2 9 4 9.5 9.4 9.1 9.3 9.3 9.3 9.3 9.3 9.7 9.2 9.2 17.5 31.8 142 2 235.4 210 7 153.5 163.2 14.3 12.3 17.7 9.9 43.3 43.4 38.2 41.1 27.3 31.5 37.6 31.8 36.9 40.4 32.6 24.4 148.0 152.1 148.6 152.3 157.7 158.0 160.2 165.4 183.7 194.3 199.1 213.5 12 9 16.1 12.7 12.9 8.6 12.8 17.5 20.9 22.3 25.7 25 4 24.4 5 8 5.7 5.7 5.7 5.8 5.8 5.6 5.7 5.2 5.1 5 2 5.2 109.8 187.9 191.0 57.9 76.9 56.2 52.1 51.0 48.7 52.8 51.8 51.7 50.3 45.2 46.9 45.0 44.5 Latin America Date Latin BoAmer- Argen- livia* Brazil Chile tina ica 1939—Dec. (Jan. 3, 1940) 1940—Dec. (Jan. 1, 1941) 1941—Dec. 31 1942—Dec. 31 1943—Dec. 31 336.0 447.3 417.7 597.7 693.7 1944—Nov. 30 Dec. 31 1945—Jan. 31 899.4 84.6 909.3 93.9 963.3 89.3 Jan. 312 Feb. 28 Mar. 31 Apr. 30 May 31 June 30 July 31 Aug. 31 Sept. 30 Oct. 31 970.2 976.9 964.0 993.5 1,035.0 1,076.9 1,100.7 1,087.4 1,110.6 1,097.7 57.7 115.4 75.7 67.6 69.8 89.3 89.9 73.4 73.1 70.0 73.2 82.5 75.1 78.0 77.2 43.4 67.1 37.0 47.9 62.5 12.4 100.3 12.2 70.4 57.4 55.0 54.4 85.2 83.6 85.0 54.4 53.2 52.1 51.3 54.9 66.8 64.6 64.5 63.2 63.6 85.0 82.8 81.5 77.2 76.6 76.2 82.3 90.2 93.2 83.1 7.0 6.9 7.4 8.1 8.2 7.5 8.0 7.0 6.2 6.6 36.4 36.2 50.5 67.7 98.7 26.8 28.5 27.3 34.5 54.0 18.7 142.7 17.7 140.8 19.9 160.2 19.9 18.9 17.1 18.5 17.7 19.2 17.2 18.0 17.9 17.9 10.8 12.6 160.2 156.9 128.2 133.3 138.8 146.2 164.4 163.0 181.5 179.2 Colombia* NethFrench erWest lands Other Costa Cuba Indies Mex- West Pana- Peru* Vene- Latin and zuela* AmerRica* ico Indies ma6 Guiand ica ana4 Surinam4 4.9 2.6 58.8 55.0 37.7 95.7 70.4 7.1 131.1 7.4 139.3 7.0 139.1 3.1 4.4 4.6 139.1 136.6 141.2 160.2 169.6 190.4 153.9 156.9 154.5 145.4 4.6 5.1 5.4 5.2 6.3 6.3 8.6 7.3 7.8 7.3 20.7 41.2 34.0 58.7 42.1 36.9 57.6 17.7 17.4 90.7 83.1 99.3 35.8 36.0 35.3 67.7 69.1 69.4 25.8 27.7 29.2 20.9 24.2 29.4 31.5 49.0 99.3 114.2 129.0 140.1 158.4 163.8 177.2 158.7 164.4 164.3 35.3 35.5 34.3 33.7 32.5 29.2 31.5 31.7 32.9 33.6 76.3 78.7 82.5 81.8 83.1 86.2 89.6 87.8 89.1 90.5 29.2 29.7 32.7 33.9 33.9 35.5 35.8 38.8 38.8 42.6 49.0 43.9 49.4 43.2 48.2 41.5 50.2 43.0 44.3 48.5 85.3 105.6 121.8 64.2 95.4 120.0 119.8 121.5 121.5 124.6 129.9 133.8 136.6 134.8 134.9 145.3 138.6 138.1 For footnotes see p. 347. 346 FEDERAL RESERVE BULLETIN INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued SHORT-TERM FOREIGN LIABILITIES AND ASSETS REPORTED BY BANKS IN THE UNITED STATES. BY COUNTRIES—Continued [In millions of dollars] LIABILITIES—SUPPLEMENTARY DATA—Continued Asia and All Other Date 1939—Dec. (Jan. 1940—Dec. (Jan. 1941—Dec. 1942—Dec. 1943—Dec. Asia 3, 1940). . 1, 1941). . 31 31 31 India, BurFrench ma, China Indo-1 Hong and Kong China Ceylon1 71.4 491.4 167.0 616.9 '583.9 712.1 887.6 Japan Egypt Bri- (incl. Neth- Philand French Union Koertish All Aus- New of rea) lands ippine Tur- Other other2 tra- Zea- Anglo- Mo- South Other 1 Ma- 1 and Iskey Asia Egyp- rocco East lia land tian laya Man- Indies1 lands Africa Sudan churia 207.5 156.8 360.9 ' 27.'4 574.2 27.4 110.3 69.9 "i.'o 4.8 160 A 4.1 110.1 .9 1.2 4.0 113.6 1.3 4.0 110.5 1944—Nov. 30 Dec. 31 936.8 607.2 743.8 427.3 27.4 22.9 39.3 27.4 22.9 22.1 Dec. 313 1945—Jan. 31 743.8 427.3 912.4 573.9 27.4 22.9 22.1 27.4 22.6 20.8 1.3 1.3 4.0 4.0 27.4 27.4 27.4 27.5 27.5 27.5 27.5 27.6 27.6 27.5 1.3 .9 .9 .9 .8 1.0 .9 .9 .9 1.0 162.4 45.6 264.9 30.7 36.8 29.9 36.2 37.9 35.4 55.5 73.3 113.6 149.6 23.1 '4.8 ' "6.'8 " 12." i ' 11.0 '9i.'8 175.3 25.3 5.1 6.1 4.5 124.1 10.3 39.2 20.3 61.7 144.7 40.0 3.6 7.2 5.2 84.2 4.4 40.4 23.', 64.2 182.9 52.9 3.5 7.3 4.3 8.3 106.5 4.0 111.1 3.9 113.5 4.0 116 5 4.0 115.4 4.0 117 6 4.1 111.3 4.3 112.6 3.9 108.8 4.2 99.3 4.2 104.4 Jan. 313. Feb. 28 Mar. 31 Apr. 30 May 31 June 30 July 31 Aug. 31 Sept. 30 Oct. 31 c 1 2 s 912.4 911.7 917.2 916.2 915.6 878.4 865.5 942.6 990.4 1,007.7 573.9 556.9 554.4 546.9 •541.7 519.6 501.1 578.7 588.5 591.7 22.6 22.8 21.9 21.6 21.9 22.0 21.9 21.7 21.9 21.7 20.8 21.1 21.3 23.5 26.6 23.2 24.1 25.3 28.9 33.2 58.5 72.5 29.1 165.4 91.1 61.6 41.6 13.'i 23.9 18.2 110.5 111.1 40.4 23.7 64.2 174.0 52.9 3.5 40.2 37.1 74.C 174.1 34.2 5.6 40.2 42.8 40.4 43.8 45.2 49.6 52.5 50.4 92.0 89.7 37.1 46.0 50 4 51.6 50.7 51.5 50.8 51.2 50.5 50.5 74.0 76.4 80.1 80.9 79 4 68.6 69.6 74.2 76.7 83.7 138.6 141.4 144.5 144.1 141.6 142.4 141.2 152.5 166.5 194.6 34.2 34.9 34 6 34.5 32 0 30.7 27.8 27.6 28.5 29.0 5.6 4.8 4 1 3.6 3.5 3.3 3.3 4.6 3.1 3.7 7.3 8.4 4.3 4.2 8.3 97.6 8.9 112.8 8.4 8.8 9.0 9.8 9 5 11.0 10.8 13.6 13.6 17.3 4.2 4.1 3 9 4.1 4 3 3.6 4.0 4.7 5.8 7.7 8.9 8.0 7 4 7.1 6 0 6.4 4.7 5.8 8.4 6.4 77.4 80.8 85 5 85.0 86 2 87.4 90.5 96.2 107.1 130.4 Corrected. Prior to June 30, 1942, included under "Other Asia." Country breakdown not available until June 30, 1942. See footnote 2 for main table. Footnotes to table on p. 346. 1 Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other." 2 Certain of the figures are not strictly comparable with the corresponding figures for preceding months owing to changes in reporting practice of various banks. The cumulative figures in Tables 1, 2, and 3 of "Net Capital Movement to the United States" have been adjusted to exclude the unreal movements introduced by these changes. Figures shown above are adjusted to compare with those of previous months. 3 Prior to June 30. 1942, included under "AH other." 4 Prior to June 30, 1942, included under "Other Latin America." 6 Included "Canal Zone" prior to June 30, 1942. • NOTE.—For previous changes or corrections in the reporting practices of reporting banks (similar to those indicated in footnote 2 above), which occurred on Aug. 12, 1936, Jan. 5, 1938, Oct. 18, 1939, and May 7, 1941, see Banking and Monetary Statistics, pages 578-584. For changes subsequent to 1941, which occurred on Apr. 1 and June 30, 1942, Sept. 30 and Oct. 31, 1943, and Mar. 31, 1944, see BULLETIN for September 1945, pp. 967-970. ASSETS Total Date United King- France dom Nether lands Switzerland Germany Italy Other Total Europe Europe Canada Latin America Asia1 All other1 1934—Dec. 1935—Dec. 1936—Dec. I937—Dec 1938—Dec. 1,139.9 (Jan. 2, 1935) (Jan. 1, 1936) . . . . 778.6 30 672.6 655 0 29 (Jan. 4, 1939) . . . . 594.0 296.9 88.1 114.1 84 8 86.0 80.5 32.5 16.8 13 5 10.3 18.6 19.0 21.9 23.0 24.2 8.2 6.6 5.4 5.5 5.5 231.7 202.0 165.1 126.1 89.4 27.2 13.5 10.9 20.8 13.5 80.0 71.2 57.8 52.9 45.9 743.2 433.0 392.1 326.5 274.9 96.3 100.9 59.4 118.0 60.4 174.6 154.5 141.1 114.4 99.1 117.4 80.1 67.2 78.9 144.1 8.5 10.1 12.9 17.2 15.5 1939—Dec. 1940—Dec. 1941—Dec. 1942—Dec. 1943—T3ec. (Jan. 3, 1940) (Jan. 1, 1941) . . . . 31 31 31 . 508.7 384.0 367 8 246.7 257.9 39.9 23.0 20.9 12.6 19.9 4.9 4.2 1.8 1.3 1.1 5.7 .9 1.1 .5 .4 5.2 1.5 2.6 1.5 3.0 53.4 39.6 34.4 34.0 33.9 11.8 2.0 1.5 .4 .4 51.4 29.9 26.2 22.3 19.0 172.2 101.0 88.4 72.6 77.6 39.7 36.0 33.6 34.3 37.8 113.3 122.7 148.3 99.7 112.2 174.1 117.8 87.9 35.3 26.3 9.3 6.4 9.7 4.8 3.9 1944—Nov. Dec. I945—j an< Feb. Mar Apr. May June July Aug. Sept. Oct. 30 31 31 28 31 30 31 30 31 31 30 31 262.8 329 7 287.3 275.6 286 9 290.8 289.8 375 0 325. 2 r 306.5 r 27O 2 260.0 24.6 25 9 25.8 27.4 23 2 25.4 30.5 27 9 24.8 31.6 24 9 21.5 1.4 1.4 .3 .3 3.3 1.3 8.2 44.4 .3 1.9 .4 8.4 1.5 1 5 .3 .3 .8 .9 .3 .3 8.7 8.7 .9 .8 5.4 .3 .3 .3 8.4 8.9 1.2 1.2 .3 .4 3.6 2.0 1.2 1.0 .6 .6 2.7 3.0 71.9 107.5 72.1 72.9 68.8 70.8 76.2 117.6 113.0 79.1 71.7 69.8 28.0 28.1 31.1 24.8 23.9 23.0 25.6 53.8 45.2 41.5 39.6 32.2 116.8 131.0 131.9 127.3 144.1 145.0 127.9 144.5 109.8 "•116.6 »-120.6 113.6 33.0 51.4 41.5 40.9 41.0 42.6 51.1 49.2 47.7 60.7 30.8 37.3 13.0 11.7 10.6 9.7 9.2 .5 .4 .7 33.9 33.9 33.9 33.9 33.9 33.9 33.9 33.9 33.9 33.9 33.9 33.9 .3 .3 1.5 . . . . 1.4 1.3 1.3 .3 .3 48.2 48.7 9.7 .3 .1 8.1 9.6 9.3 9.0 9.9 9.5 8.5 7.6 7.2 r 1 Revised. Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other." NOTE.—The figures in this table are not fully comparable throughout since certain changes or corrections took place in the reporting practice of reporting banks on Aug. 12, 1936, and Oct. 18, 1939. (See Banking and Monetary Statistics, Table 161, pp. 589 and 591.) On June 30, 1942, reporting practice was changed from a weekly to a monthly basis. For further information see BULLETIN for September 1945, pp. 971-974. MARCH 1946 347 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued SHORT-TERM FOREIGN LIABILITIES AND ASSETS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES—Continued [In millions of dollars] ASSETS—SUPPLEMENTARY DATA Other Europe Other Europe Bel- Denmark 1939—Dec. (Jan. 3, 1940) 1940—Dec. (Jan. 1, 1941) 1941—Dec. 31 1942—Dec. 31 1943—Dec. 31 51.4 29.9 26.2 22.3 19.0 6.5 1.5 1.1 3.2 1944—Nov. 30. Dec. 31. 1945—Jan. 31. Feb. 28. Mar. 31. Apr. 30. May 31. June 30. July 31. Aug. 31. Sept. 30. Oct. 31. 8.2 44.4 8.4 8.7 8.7 8.4 8.9 48.2 48.7 9.7 8.1 9.6 Date s 8 () 00 Finland Greece1 Luxembourg1 1.4 1.8 1.9 5.6 7.6 .8 () 1.5 PorRutugal1 mania1 Spain Yugo- All USSR1 slavia1 other 28.0 24.5 22.1 8.4 5.0 5.0 5.1 5.0 5.1 5.0 5.1 4.9 4.8 4.9 4.9 5.1 5.0 2.4 1.4 1.1 .6 .6 .6 .6 .6 .6 .6 .6 .6 .6 .6 .6 .6 () 8 8 () Sweden 3.2 3.2 8.7 1.0 .6 .4 .2 .6 .8 .7 .6 .5 .6 .6 .5 .2 .3 .3 .2 .8 1.8 .9 1.2 1.3 .9 1.5 .9 .9 1.4 .9 1.0 .3 .2 .2 .2 .2 .2 .3 .3 .7 1.5 .3 .5 3.6 () (2) Norway 35. .1 Latin America Date 1939—Dec. 1940—Dec. 1941—Dec. 1942—Dec. 1943—Dec. Latin BoAmer- Argen- livia3 Brazil Chile ica (Jan. 3, 1940). (Jan. 1, 1941). 31 31 31 113.3 122.7 148.3 99.7 112.2 16.8 11.9 16.8 6.9 15.3 116.8 131.0 131.9 127.3 144.1 145.0 127.9 144.5 109.8 116.6 120.6 113.6 3.9 3.1 2.8 2.9 5.5 8.7 7.7 8.3 14.1 11.0 12.8 10.8 1944—Nov. 30. Dec. 31. 1945—Jan. 31. Feb. 28. Mar. 31. Apr. 30. May 31. June 30. July 31. Aug. 31. Sept. 30. Oct. 3 1 . . 3.0 1.8 32.2 33.1 38.0 16.7 18.9 9.7 13.4 14.9 15.3 16.6 1.4 1.8 1.7 1.2 1.3 1.4 1.3 1.2 1.2 1.3 1.1 1.8 24.4 25.3 24.8 23.8 22.7 24.1 25.5 30.6 26.9 24.4 21.7 18.2 8.7 9.0 8.5 8.5 7.8 8.7 8.4 7.0 8.4 6.3 7.5 6.8 Colombia* NetherFrench lands West Other West Costa Cuba Indies Vene- Latin 3 Indies Pana- Peru* zuela3 AmerMexico and Rica ma4 and Guiica Suriana3 nam3 20.7 12.2 10.5 11.7 .3 8.3 20.1 5.9 6.1 7.6 4.8 11.2 14.8 15.5 15.5 13.5 16.0 14.7 15.1 16.8 16.3 17.1 16.7 14.2 33.9 47.4 49.2 50.1 60.9 57.1 39.1 49.7 10.3 14.5 18.3 17.0 8.0 8.6 9.3 8.4 9.1 8.8 8.7 8.9 10.2 8.7 9.0 9.7 1.0 2.1 2.4 2.1 1.1 2.8 1.4 3.9 3.8 37.2 44.4 57.3 14.2 8.7 .5 .2 .7 .4 .4 .4 .4 .4 .7 .9 .3 .3 5.6 5.1 4.1 3.7 4.0 4.9 5.8 5.6 5.5 5.2 5.2 5.7 12.1 11.7 11.8 11.4 13.1 13.0 12.6 12.3 12.4 23.7 24.1 25.4 Asia and All Other' Date 1939—Dec. 1940—Dec. 1941—Dec. 1942—Dec. 1943—Dec. (Jan. 3, 1940) (Jan. 1, 1941) 31 31 31 1944—Nov. 30 Dec. 31 1945—Jan. 31 Feb. 28 Mar. 31 Apr. 30 May 31 June 30 July 31 Aug. 31 Sept. 30 Oct. 31 India, French Hong Burma, Indo-5 Kong and Asia China China Ceyl s 174.1 117.8 87.9 35.3 26.3 22.0 23.7 23.5 11.1 1.7 1.9 1.7 3.1 .9 1.0 33.0 51.4 41.5 40.9 41.0 42.6 51.1 49.2 47.7 60.7 30.8 37.3 1.6 1.5 1.7 1.2 1.3 1.3 1.1 1.2 1.0 1.1 1.1 1.2 .9 .9 .9 .9 .9 .9 .9 Japan Egypt Bri- (incl. Neth- Philand Union Koertish rea) lands ippine Tur Other All 6 Aus- New Anglo- French of tra- Zea- Egyp- Mo- South Other Ma-5 and Is- key5 Asia other lia land East tian rocco Africa laya Man- Indies5 lands Sudan churia 2.2 2.0 102.1 55 18.9 .5 .5 1.6 1.7 21.6 26.4 14.0 22.6 19.5 23.0 14.4 1.8 2.0 13.9 3.2 1.8 4.2 22.3 12.4 12.1 11.8 12.1 19.4 16.8 14.5 15.0 8.0 7.2 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 1.5 1.5 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 13.8 13.8 13.9 13.9 13.9 13.9 13.9 13.6 13.9 26.0 13.6 13.0 1.4 1.8 2.0 1.8 1.8 1.9 2.0 2.0 2.2 2.1 2.3 1.6 9.3 6 9.7 4.8 1.0 3.9 .5 8.9 13.0 8.8 11.7 8.6 10.6 9.0 9.7 9.1 9.2 10.5 9.3 11.8 9.0 1.0 12.5 9.9 .9 13.1 9.5 2.1 13.6 8.5 1.0 2.9 7.6 .7 11.4 7.2 .7 1.7 2.4 1.2 .7 11.0 1.0 1.0 L.I L2 L.I L.2 L.2 >.4 L.6 L.8 L.6 L.5 9.7 8.3 7.2 6.7 6.7 6.1 6.0 5.2 5.0 4.5 4.1 r 1 Revised. Prior to June 30, 1942, included under "All other." 2 Less than $50,000. 3 Prior to June 30, 1942, included under "Other Latin America." * Included "Canal Zone" prior to June 30, 1942. 5 Prior to June 30, 1942, included under "Other Asia." 6 Country breakdown not available until June 30, 1942. 348 FEDERAL RESERVE BULLETIN CENTRAL BANKS Assets of issue department Assets of banking department Liabilities of banking department Bank of England (Figures in millions of pounds sterling) Cash reserves Other assets2 Goldi Coin 260.0 Notes .2 .6 .6 .8 1.0 .5 .6 .6 .8 .8 1.0 .9 .3 .9 .9 1.9 26.3 38.8 31.6 23.6 58.7 47.1 35.5 46.3 41.1 51.7 25.6 13.3 28.5 26.8 11.6 11.6 1929—Dec. 25. 1930—Dec. 31. 1931—Dec. 30. 1932—Dec. 28. 1933—Dec. 27. 1934—Dec. 26. 1935—Dec. 25. 1936—Dec. 30. 1937—Dec. 29. 1938—Dec. 28. 1939—Dec. 27 . 1940—Dec. 25. 1941—Dec. 31. 1942—Dec. 30. 1943—Dec. 29. 1944—Dec. 27. 145.8 147.6 120.7 119.8 190.7 192.3 200.1 313.7 326.4 326.4 * .2 .2 .2 .2 .2 .2 1945—Feb. 28. Mar. 28. Apr. 25. May 30. June 27. July 25. Aug. 29. Sept. 26. Oct. 31. Nov. 28. Dec. 26. .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 1,250.0 1,250.0 1,250.0 s 1,300.0 1,300.0 5 1,350.0 1,350.0 1,350.0 1,350.0 1,350.0 M,400.0 1.7 1.5 1.3 1.2 1.3 .9 .4 .2 .4 .5 .4 1946—Jan. 30. .2 1,400.0 .5 260.0 275.0 275.0 260.0 260.0 260.0 200.0 220.0 230.0 580.0 5 630.0 s 780.0 5 950.0 5 1,100.0 5 1,250.0 Discounts and advances Note circulation3 Deposits Bankers' Securities Public Other Other liabilities 8.5 17.5 9.2 28.5 4.3 4.0 6.4 3.5 2.5 5.1 84.9 104.7 133.0 120.1 101.4 98.2 94.7 155.6 135.5 90.7 176.1 199.1 267.8 267.9 307.9 317.4 379.6 368.8 364.2 371.2 392.0 405.2 424.5 467.4 505.3 504.7 554.6 616.9 751.7 923.4 1,088.7 1,238.6 71.0 132.4 126.4 102.4 101.2 89.1 72.1 150.6 120.6 101.0 117.3 135.7219.9 223.4 234.3 260.7 8.8 6.6 7.7 8.9 22.2 9.9 12.1 12.1 11.4 15.9 29.7 12.5 11.2 9.0 10.3 5.2 35.8 36.2 40.3 33.8 36.5 36.4 37.1 39.2 36.6 36.8 42.0 51.2 54.1 48.8 60.4 52.3 17.9 18.0 18.0 18.0 18.0 18.0 18.0 18.0 18.0 18.0 17.9 17.9 17.9 17.9 17.9 17.8 33.1 14.5 15.0 30.6 15.1 44.5 24.3 20.3 28.1 22.6 20.3 8.5 18.6 20.1 9.6 3.8 1.8 7.2 3.6 11.2 11.3 8.4 261.1 268.4 269.9 254.3 324.2 263.6 295.3 331.7 288.9 301.6 327.0 1,217.1 1,235.8 1,235.2 1,269.6 1,285.2 1,305.7 1,325.9 1,329.9 1,322.2 1,327.6 1,379.9 207.8 218.9 229.6 212.4 262.3 229.1 238.2 279.1 244.2 250.2 274.5 18.1 8.9 8.5 14.8 12.7 10.3 16.0 5.5 9.2 10.5 5.3 60.5 57.0 50.5 50.7 51.6 53.6 55.0 53.1 57.4 57.7 58.5 18.0 18.1 17.7 17.8 17.9 17.9 18.0 18.1 17.7 17.8 17.8 68.8 5.5 289.6 1,331.4 279.7 11.0 55.9 17.9 22.3 49.0 27.3 18.5 16.8 7.6 Liabilities Assets Bank of Canada (Figures in millions of Canadian dollars) 1935—Dec. 31.. 1936—Dec. 31.. 1937—Dec. 31.. 1938—Dec. 31. . 1939—Dec. 30. . 1940—Dec. 31.. 1941—Dec. 31.. 1942—Dec. 31. . 1943—Dec. 31.. 1944—Dec. 30.. Gold Sterling and United States dollars Dominion and provincial government securities Deposits Other assets Shortterm6 Note circulation1 Other liabilities8 Chartered banks Other Dominion government Other 4.2 9.1 14.9 28.4 64.3 38.4 200.9 .5 .6 172.3 30.9 61.3 82.3 144.6 181.9 448.4 391.8 807.2 787.6 906.9 83.4 99.0 91.6 40.9 49.9 127.3 216.7 209.2 472.8 573.9 8.6 8.2 21.7 5.2 5.5 12.4 33.5 31.3 47.3 34.3 99.7 135.7 165.3 175.3 232.8 359.9 496.0 693.6 874.4 1,036.0 181.6 187.0 196.0 200.6 217.0 217.7 232.0 259.9 340.2 401.7 17.9 18.8 11.1 16.7 46.3 10.9 73.8 51.6 20.5 12.9 19.1 17.8 27.7 7.7 13.4 14.4 9.3 13.3 28.5 35.1 24.0 55.4 209.1 1945—Feb. 28.. Mar. .31.. Apr. 30.. May 3 1 . . June 30. July 31. Aug. 3 1 . Sept. 29.. Oct. 3 1 . Nov. 30.. Dec. 31.. 170.4 177.1 196.6 177.9 174.4 174.4 176.1 176.1 176.1 159.0 156.8 891.6 926.5 937.7 1,068.3 1,073.8 1,034.7 1,031.5 1,028.9 1,109.4 1,168.1 1,157.3 595.5 608.7 621.7 533.5 559.5 558.3 584.0 591.4 590.6 629.4 688.3 29.0 33.2 49.7 42.0 34.4 56.5 62.3 34.9 39.5 69.5 29.5 1,028.6 1,048.7 1,062.3 1,055.8 1,063.2 1,078.8 1,097.9 1,112.4 1,136.6 1,113.8 1,129.1 397.6 422.0 448.9 464.8 492.0 441.1 444.4 442.9 474.2 495.2 521.2 27.9 18.7 39.5 33.6 43.9 57.5 32.6 39.6 51.0 159.1 153.3 37.2 52.7 50.8 32.4 35.9 37.6 39.7 22.4 32.4 27.4 29.8 195.1 203.4 204.2 235.1 207.1 208.8 239.2 213.9 221.3 230.5 198.5 1946—Jan. 31.. 101.8 1,143.8 686.2 33.2 1,088.1 505.9 187.2 34.2 149.6 180.5 179.4 179.8 185.9 225.7 .8 2.1 3.5 3.1 17.9 9.5 6.0 1 Through February 1939, valued at legal parity of 85 shillings a fine ounce; thereafter at market price, which fluctuated until Sept. 6, 1939, when it was officially set at 168 shillings per fine ounce; the latter rate remained in effect until June 9, 1945, when it was raised to 172 shillings and three pence. 2 Securities and silver coin held as cover for fiduciary issue, the amount of which is also shown by this figure. 3 Notes issued less amounts held in banking department. < On Jan. 6, 1939, 200 million pounds sterling of gold (at legal parity) transferred from Bank to Exchange Equalization Account; on Mar. 1, 1939, about 5.5 million pounds (at current price) transferred from Exchange Account to Bank; on July 12, 1939, 20 million pounds transferred from Exchange Account to Bank; on Sept. 6, 1939, 279 million pounds transferred from Bank to Exchange Account. s Fiduciary issue increased by 50 million pounds on June 12, 1940, Apr. 30, Aug. 30, and Dec. 3, 1941, and Apr. 22 and July 28, 1942; by 70 million pounds on Dec. 2, 1942; and by 50 million pounds on Apr. 13, Oct. 6, and Dec. 8, 1943, Mar. 7, Aug. 2, and Dec. 6, 1944, and on May 8, July 3, and Dec. 10, 1945. 6 Securities maturing in two years or less. 7 Includes notes held by the chartered banks, which constitute an important part of their reserves. 8 Beginning November 1944, includes a certain amount of sterling and United States dollars. 9 On May 1, 1940, gold transferred to Foreign Exchange Control Board in return for short-term Government securities (see BULLETIN for July 1940, pp. 677-678). NOTE.—For back figures on Bank of England and Bank of Canada, see Banking and Monetary Statistics, Tables 164 and 166, pp. 638-640 .and pp. 644-645, respectively; for description of statistics see pp. 560-564 in same publication. MARCH 1946 349 CENTRAL BANKS—Continued Liabilities Assets Bank of France Foreign exchange Gold* 27. 26. 30. 30. 29. 28. 27. 30. 30. 29. 28. 26. 31. 31. 30. 28 1945—Jan. 25. Feb. 22. Mar. 29., Apr. 26. May 31. Aug. 30. Sept. 27. Oct. 31. Nov. 29. Dec. 27. 25,942 26,179 21,111 4,484 1,158 963 1,328 1,460 911 821 112 42 38 37 37 42 41,668 53,578 68,863 83,017 77,098 82,124 66,296 60,359 58,933 87,265 597,267 5 84,616 84,598 84,598 84,598 75,151 75,151 75,151 75,151 75,151 75,151 75,151 75,151 565,152 65,152 5 129,817 1929—Dec. 1930—Dec. 1931—Dec. 1932—Dec. 1933—Dec. 1934—Dec. 1935—Dec. 1936—Dec. 1937—Dec. 1938—Dec. 1939—Dec. 1940—Dec. 1941—Dec. 1942—Dec. 1943—Dec. 1944—Dec. Advances to Government Domestic bills (Figures in millions of francs) Open 2 market 2 Special Other 5,612 5,304 7,157 6,802 6,122 5,837 5,800 5,640 5,580 7,422 11,273 43,194 42,115 43,661 44,699 47,288 For occupation costs3 Other assets 8,624 8,429 7,389 3,438 4,739 3,971 42 47,842 42 47,894 44 48,483 44 48,257 45 48,141 46 48,703 46 49,363 47 60,087 45 62,210 68 '23,038 1,379 652 1,797 2,345 661 12 169 29 48 16 9 2 27 153 303 9,712 8,465 10,066 7,880 5,149 3,646 4,517 5,368 7,543 18,592 72,317 142,507 210,965 326,973 426,000 26,360 23,473 16,601 14,967 10,162 12,936 14,242 20,442 26,073 25,548 426,000 426,000 426,000 426,000 426,000 426,000 426,000 426,000 426,000 426,000 Other2 17,698 31,909 20,627 34,673 63,900 69,500 68,250 64,400 15,850 7,700 17,550 20,900 19,750 8,124 9,510 11,275 11,712 11,173 11,500 11,705 12,642 11,733 18,498 20,094 23,179 22,121 21,749 21,420 6 35,221 6 45,435 6 37,903 6 42,093 6 43,634 6 35,403 6 41,666 H2.717 646,152 «45,859 639,122 Deposits Note circulation Govern- C.A.R.4 ment 68,571 76,436 85,725 85,028 82,613 83,412 81,150 89,342 93,837 110,935 151,322 218,383 270,144 382,774 500,386 572,510 ,737 ,624 898 ,311 322 ,718 ,862 ,089 ,461 061 ,914 984 ,517 770 578 748 562,416 568,900 580.123 580,944 548,945 469,652 496,258 528,945 545,795 570,006 3,196 778 775 756 774 80,246 53,598 30,793 21,708 12,048 Reichsbank (Figures in millions of reichsmarks) Reserves of gold and foreign exchange Total reserves 31. 31. 31. 31. 30. 31. 31. 31. 31. 31. 30. 31. 31. 31. 31. 2,687 2,685 1,156 920 396 84 88 72 76 76 78 78 77 76 77 1944_Mar. 31. Apr. 29. M a y 31. June 30. July 31 Aug. 31. Sept. 30 Oct. 31 Nov. 30. Dec. 30. 77 77 77 77 77 77 77 77 77 77 1945—Jan. 31. Feb. 28. 77 77 1929—Dec. 1930—Dec. 1931—Dec. 1932—Dec. 1933—Dec. 1934—Dec. 1935—Dec. 1936—Dec. 1937—Dec. 1938—Dec. 1939—Dec. 1940—Dec. 1941—Dec. 1942—Dec. 1943—Dec. Gold 2,283 2,216 984 806 386 79 82 66 71 71 71 71 71 71 71 71 Bills (and checks), including Treasury bills 7,850 11,698 22,183 20,072 13,414 15,359 8,716 13,655 19,326 25,595 14,751 27,202 25,272 29,935 33,137 37,855 1,812 2,241 1,989 2,041 1,940 1,907 2,113 2,557 3,160 2,718 925 3,586 3,894 4,461 4,872 7,078 50,382 43,697 39,951 42,302 57,231 50,005 53,156 52,552 53,447 57,755 41,400 64,580 16,857 10,724 Assets Other Other liabilities 4,852 4,797 5,075 4,950 7,701 4,600 4,506 5,617 4,540 4,087 Liabilities Securities Security loans Eligible as note cover Other Other assets Note circulation Deposits Other liabilities 656 638 1,065 1,114 735 827 853 765 861 1,621 2,498 2,066 2,311 1,664 2,337 5,044 4,778 4,776 3,560 3,645 3,901 4,285 4,980 5,493 8,223 11,798 14,033 19,325 24,375 33,683 755 652 755 540 640 984 1,032 1,012 1,059 1,527 2,018 2,561 3,649 5,292 8,186 736 822 1,338 1,313 836 1,001 923 953 970 ,091 ,378 ,396 ,493 ,680 ,980 2,848 2,572 4,242 2,806 3,226 4,066 4,552 5,510 6,131 8,244 11,392 15,419 21 656 29,283 41,342 251 256 245 176 183 146 84 74 60 45 30 38 32 25 27 259 445 349 221 106 557 804 32 107 87 1 92 102 161 398 322 319 315 303 286 298 393 357 283 210 65 40,379 40,909 42,159 42,150 43,222 45,829 50,821 53,954 56,939 63,497 46 38 28 26 38 42 47 46 62 112 1 1 1 1 1 1 67 70 69 1 33 31 23 27 21 20 25 24 21 45 2,281 2,525 2,096 2,397 2,396 2,275 2,510 2,351 2,795 2,351 33,792 34,569 35,229 35,920 36,888 38,579 42,301 44,704 46,870 50,102 7,237 7,179 7,240 6,754 6,813 7,480 9,088 9,603 10,829 13,535 ,788 ,833 ,915 2,004 2,054 2,185 2,160 2.216 2,264 2,445 64,625 70,699 199 307 81 112 60 61 2,083 2,591 51,207 55,519 13,566 16,419 2,353 1,909 1 Gold revalued on Dec. 26, 1945, on basis of 134,027.90 francs per fine kilogram. For details on previous devaluations see BULLETIN for May 2 1940, pp. 4®6-407; January 1939, p. 29; September 1937, p. 853; and November 1936, pp. 878-880. For explanation of this item, see BULLETIN for July 1940, p. 732. 3 By a series of Conventions between the Bank of France and the Treasury, dated from Aug. 25, 1940, through July 20, 1944, advances of 441,000 million francs were authorized to meet the costs of the German army of occupation. 4 Central Administration of the Reichskreditkassen. 5 In each of the weeks ending Apr. 20 and Aug. 3, 1939, 5,000 million francs of gold transferred from Exchange Stabilization Fund to Bank of France; in week ending Mar. 7, 1940, 30,000 million, in week ending Oct. 11, 1945, 10,000 million, and in week ending Dec. 27, 1945, 53,000 million francs of gold transferred from Bank of France to Stabilization Fund. 6 Includes 9,447 million francs charged to the State to reimourse the Bank for the gold turned over by it to the National Bank of Belgium on Dec. 22, 1944. 7 Forty billion francs of gold increment resulting from revaluation used to cancel an equal amount of Treasury bonds. 8 Gold not shown separately in weekly Reichsbank statement after June 15, 1939. NOTE.—For back figures on Bank of France and Reichsbank, see Banking and Monetary Statistics, Tables 165 and 167, pp. 641-643 and pp. 645-647, respectively; for description of statistics see pp. 562-565 in same publication. 350 FEDERAL RESERVE BULLETIN CENTRAL BANKS—Continued Central Bank (Figures as of last report date of month) Central Bank of the Argentine Republic (millions of pesos): Gold reported separately Other gold and foreign exchange Government securities Rediscounted paper Other assets Note circulation Deposits—Member bank Government Other Certificates of participation in Government securities Other liabilities C o m m o1n w e a l t h Bank of Australia (thousands of pounds): Gold and foreign exchange Checks and bills of other banks. . Securities (inch Government and Treasury bills) Other assets Note circulation Deposits of Trading Banks: Special Other Other liabilities National Bank of Belgium (millions of francs): Gold* Foreign exchange Loans to Government Other loans and discounts Claim against Bank of Issue... . Other assets Note circulation Demand deposits Blocked Treasury account2 Notes and blocked accounts 4 .... Other liabilities Central Bank of Bolivia (millions of bolivianos): Gold at home and abroad , Foreign exchange Loans and discounts Securities—Government Other Other a,ssets Note circulation Deposits Other liabilities National Bank of Bulgaria 6 Central Bank of Chile (millions of pesos): Gold Discounts for member banks... Loans to Government Other loans and discounts Other assets Note circulation Deposits—Bank Other Other liabilities Bank of the Republic of Colombia (thousands of pesos): Gold Foreign exchange Loans and discounts Government loans and securities. Other assets Note circulation Deposits Other liabilities National Bank of Czechoslovakia in Prague 7 (millions of koruny): Gold Foreign exchange Loans and discounts Other assets 1945 Jan. Dec. Nov. Jan. Central Bank (Figures as of last report date of month) 1945 1946 Jan. Dec. Nov. Jan. National Bank of Czechoslovakia in Prague—Continued C Note circulation—Old 2,192 C 2,841 35,647 1,242 New 24,233 17,847 2,483 Deposits 93,411 99,501 17,079 873 Other liabilities 10,627 12,880 13,600 166 150 National Bank of Denmark (millions of kroner): 2,722 2,317 97 Gold 97 1,719 83 1,410 Foreign exchange 22 110 88 516 525 Clearing accounts (net) 121 2,946 2,847 199 191 32 Loans and discounts 41 75 101 Securities 88 73 180 126 Govt. compensation account 8 . . . 85 65 7,611 229 179 Other assets 147 4,979 4,491 Note circulation 1,610 1,421 1,561 Deposits—Government 2,737 2,829 2,543 177,460 176,712 177,783 Other 3,634 3,618 3,037 1,063 1,863 1,610 485 443 Other liabilities 280 Central Bank of Ecuador 419,092 426,160 410,568 (thousands of sucres): 13,731 (Oct.) 15,813 13, Gold 190,464 288,843 288,639 193,714 199 Foreign exchange (net) 118,365 160,439 Loans and discounts 131,895 117,607 230,689 236,780 233, Other assets 90,598 85,695 27,074 32,865 32, Note circulation 337,865 304 ,625 155,719 150,617 150 Demand deposits 263,650 300 ,570 Other liabilities 28,187 47,184 9 383 31,166 32,094 National Bank of Egypt (thousands of pounds) : 4,820 688 915 Gold 6,241 6,241 270 44,686 30,416 Foreign exchange 18,063 15,659 1,095 2,442 769 Loans and discounts 6,083 6,144 597 64,597 64,589 British, Egyptian, and other 1,283 2,183 342 Government securities 299,913 265,124 376 66,761 44,329 Other assets 27,596 22,738 3,237 3,535 444 Note circulation 142,232 117,078 493 314,493 10,493 Deposits—Government 64,722 69,868 589 62,029 73,279 Other 135,914 115,540 1,127 147 1,003 Other liabilities 15,028 13,421 Central Reserve Bank of El Salva(Oct.)' dor (thousands of colones): 768 600 Gold 33,008 33,027 33,222 550 414 Foreign exchange 37,382 36,252 31,306 372 289 1,086 Loans and discounts 1,789 2,113 630 626 Government debt and securities. 6,337 6,452 6,007 42 41 Other assets 1,327 1,892 1,725 234 78 Note circulation 46,022 44,607 46,737 1,459 ,256 Deposits 27,655 27,796 19,556 1,008 701 Other liabilities 7,008 6,654 6,887 129 91 6 Bank of Finland Bank of Greece 6 6 National Bank of Hungary 340 287 277 Reserve Bank of India (millions of rupees): 447 384 321 Issue department: 701 706 710 Gold at home and abroad. . 444 444 605 444 597 979 Sterling securities ,738 9,293 11,053 10,693 1,664 1,205 Indian Govt. securities ,892 578 578 578 2,612 2,516 Rupee coin 416 126 170 146 489 456 Note circulation 198 12,109 11,764 10,340 184 208 Banking department: 325 352 313 Notes of issue department.. 102 122 113 Balances abroad 3,746 5,641 5,623 Treasury bills discounted. . 23 8 82 221, 164,928 201 Loans to Government 2 4 87, 114,965 Other assets 222 276 352 25, 26,348 Deposits 5,934 5,814 3,832 65, 549 66,202 Other liabilities 262 234 240 28,235 30, Central Bank of Ireland (thousands 166,737 204, of pounds): 145,440 174, Gold 2,646 2,646 2,646 2,646 88,501 51, Sterling funds 34,918 36,287 34,809 29,147 Note circulation 37,564 38,933 37,455 31,793 6 ,51 1,517 1,517 Bank of Japan 6 869 813 786 Bank of Java 1,227 3,300 871 ,520 1,160 3,938 ,557 129,579 60,085 c Corrected. 1 Beginning Aug. 27, 1945, figures published in the balance sheet of the Commonwealth Bank cover central banking operations only, while previously these statements included the operations of the General Banking Division. 2 Gold revalued provisionally at 49.318 francs per gram. The resulting increment is held for the account of the Treasury and is shown on the liabilities side under "Blocked Treasury account." 3 In addition to the gold increment includes notes not presented for exchange and forfeited to the State. * Includes current accounts transferred and to be transferred to blocked accounts and old notes not declared. 5 Latest month available. 6 For last available report from the central bank of Bulgaria (January 1943), see BULLETIN for July 1943, p. 697; of Finland (August 1943), see BULLETIN for April 1944, p. 405; of Greece (March 1941) and Japan (September 1941), see BULLETIN for March 1942, p. 281; of Hungary (November 1944), see BULLETIN for January 1946, p. 99; and of Java (January 1942), see BULLETIN for March 1943, p. 278. 7 First statement available since liberation is that for July 31. Until May 1945, known as the National Bank of Bohemia and Moravia. 8 In December 1945, State-guaranteed German assets, formerly included in "Clearing accounts" and "Other assets," were transferred to Government compensation account. 9 Items for issue and banking departments consolidated. MARCH 1946 351 CENTRAL BANKS—Continued Central Bank (Figures as of last report date of month) Bank of Mexico (millions of pesos): Metallic reserve1 "Authorized" holdings of securities, etc Bills and discounts Other assets Note circulation Demand liabilities Other liabilities Netherlands Bank (millions o guilders): Gold2 Silver (including subsidiary coin) Foreign bills Discounts Loans Other assets Note circulation—Old News Deposits—Government Blocked Other Other liabilities Reserve Bank of New Zealand (thousands of pounds): Gold Sterling exchange reserve Advances to State or State undertakings Investments Other assets Note circulation Demand deposits Other liabilities Bank of Norway4 Bank of Paraguay—Monetary Dept. 5 (thousands of guaranies): Gold Foreign exchange . . . . Loans and discounts Government loans and securities. Other assets Note circulation Demand deposits Other liabilities Central Reserve Bank of Peru (thousands of soles): Gold and foreign exchange Discounts Government loans Other assets Note circulation Deposits Other liabilities Bank of Portugal (millions of escudos):7 Gold Other reserves (net) Nonreserve exchange Loans and discounts Government debt Other assets .. Note circulation Other sight liabilities Other liabilities National Bank of R u m a n i a 4 South African Reserve Bank 8 (thousands of pounds): Gold Foreign bills Other bills and loans Other assets Note circulation .. . . . Deposits Other liabilities Bank of Spain (millions of pesetas): Gold . . ... Silver Government loans and securities. Other loans and discounts... . Other assets 1945 1946 Jan. E ec. Nov Jan 746 1 ,94 39 78 1 618 1 ,367 179 ,539 167 119 397 1, 386 ,493 489 4 809 ,881 37 S04 4 ,951 1 003 46 91S 73 4 713 3,323 25,671 3,009 10,142 475 26,011 14,731 1 878 ,53: 147 117 440 1 011 93 4 ,540 206 148 10? 5 189 ,596 519 46 5 368 483 82 1 ,549 403 4 1 334 1 ,096 17 713 71 4 60 105 489 387 246 ? 80? 74 ,177 7 80? 42 ,784 30 865 5 799 77 901 9?1 11 ,737 1 678 4 9 79S 67 153 4 616 39 770 43 19? 3 891 3 22 4 10 1 26 14 1 3 ,323 28 471 4 841 10 145 404 27 121 18 503 1 560 332 886 832 727 068 312 786 747 159 487 121 882 037 18 881 033 450 175 649 7? 879 483 881 414 407 756 457 70 899 9Q 568 36 868 78 511 (Aug.)6 1 419 6 383 9 670 1 414 5 649 9 194 98? 760 020 76? 7 717 10 884 885 020 78? 7 415 10 059 844 1 1 14 4S7 00 649 043 42, 679 24 356 8 594 3, 747 604 737 106, 835 98 238 879 66 7S4 56 474 593 96 05 5 69 641 10 9 0 9 59 3 01 67 ?09 4 899 5, 409 5 7?0 188 597 15, 892 4, 244 79? 166 609 15, 959 3, 506 1 ,717 1, 1, Central Bank (Figures as of last report date of month) 1945 1946 Ja n . Dec. Nov. Jan. Bank of Spain—Continued Note circulation . . . . 265 17 94 Deposits—Government 2 ,033 2 ,89 Other 3 ,164 9 79 Other liabilities S8 494 Bank of Sweden (millions of kronor) 1 06 1 04 1 052 Gold. . . . Foreign assets (net) 7S 553 81 Swedish Govt. securities and advances to National Debt Office 1 ,500 1 ,43 1 ,339Other domestic bills and advance 32 42 4 1 170 1 ,153 Other assets 19 Note circulation 2 ,782 2 ,546 2 ,377 1 ,048 Demand deposits—Government 53483 199 Other 492 82 739 Other liabilities 737 78 Swiss National Bank (millions of francs): 4 757 70S 4 777 Gold 577 Foreign exchange '165 95 185 125 Loans and discounts . 183 145 104 MQ8 89 110 Other assets 81 84 7, 615 3 835 Note circulation 79S 409 1 ,110 1 ,093 1 ,241 Other sight liabilities 1 ,261 Other liabilities 306 28S 296 298 Central Bank of t h e Republic of Turkey (thousands of pounds): 300 9 9 6 9 9 4 6 9 9 9 76 3 8 2 Gold Foreign exchange and foreign 59 ,206 55 869 74 ,489clearings 743 049 776 073 836 ,401 Loans and discounts.. . . 7? 9 9 6 68 378 14 282 Securities 77 191 97 9 6 0 9 5 607 Other assets .. 88? 475 894 375 941 58? Note circulation 91 871 8S 586 85 5 8 6 Deposits—Gold 139 953 137 853 185 694 Other Other liabilities .. 89 100 204 4S8 74 300 Bank of t h e Republic of Uruguay (thousands of pesos): Issue department: (Oct.)6 Gold and silver. . . 122,751 22 751 Note circulation 158,063 51 771 Banking department: Gold and silver 186,825 33 241 Notes and coin 23 X4K 29 270 Advances to State and to 9 944 18 088 government bodies.... 95 014 91 589 Other loans and discounts. . 95 549 Other assets 90 87 620 63 025 Deposits 48 04 711 Other liabilities Central Bank of Venezuela (thousands of bolivares): 47, 582 17 093 16, 903 9 8 7S1 Gold10 3 5 , 963 64 658 37, 672 04 751 Foreign exchange (net) 10 157 14, 310 70 310 Credits to national banks. . . . 17, 794 11 9 3 4 IS 409 9 9 0 3 0 Other assets Note circulation—Central Bank. 75, 936 75, 379 40, 338 98, 328 9 813 10, 36S 16 643 National banks 9 0 9 144 11 131 771 SO S78 Deposits 7, 821 10, 292 Other liabilities 7, 037 6 , 820 National Bank 4of t h e Kingdom of Yugoslavia Bank for International Settlements 1 1 (thousands of Swiss gold francs): 18, 285 18, 285 14, 039Gold in bars Cash on hand and on current account with banks 41 , 669 41 9Q9 44 913Sight funds at interest 10, 888 9, 806 12, 8ia Rediscountable bills and acceptances (at cost) 81, 790 82, 328 77, 361 750 8 856 Time funds at interest 9, 7S0 98 935 9 9 760 9 9 331 Sundry bills and investments. . . 93 98 140 Other assets Demand deposits (gold) 16, 942 16, 956 1 9 , 5 6 0 Short-term deposits (various currencies): Central banks for own account 3, 670 3, 178 6, 599 1 49 S 9 0?1 Other 9 178 Long-term deposits: Special ac7 9 , 001 ? 9 , 001 79, 001 counts 0 3 , 301 0 3 , 204 0 0 , 12a Other liabilities r Revised. Includes gold, silver, and foreign exchange forming required reserve (25 per cent) against notes and other demand liabilities. Gold revalued in July 1945 from 2,098 to-2,970 guilders per fine kilogram. Notes issued before October 1945 were gradually withdrawn from circulation and deposited in "blocked" accounts in accordance with the currency reform decrees effected between June and October 1945. 4 For last available reports from the central banks of Norway (March 1940) and Yugoslavia (February 1941), see BULLETIN for March 1942, p. 282; and of Rumania (June 1944), see BULLETIN for March 1945, p. 286. 5 The Bank of the Republic of Paraguay was reorganized in September 1944 under the name of Bank of Paraguay. The new institution is divided into a Monetary, a Banking, and a Mortgage Department. The first official balance sheet of the Monetary Department, which assumes central banking functions, was issued for the end of December 1944. 6 7 Latest month available. Valued at average cost beginning October 1940. 8 9 Beginning July 1945, end-of-month statements have been available. Includes small amount of non-Government bonds. 10 Beginning October 1944, a certain amount of gold, formerly reported nin the Bank's account, shown separately for account of the Government. See BULLETIN for December 1936, p. 1025. 1 2 3 352 FEDERAL RESERVE BULLETIN. MONEY RATES IN FOREIGN COUNTRIES DISCOUNT RATES OF CENTRAL BANKS [Per cent per annum] Central bank of— Date effective United Ger- Bel- Neth Swe- Switz erKing- France many gium erlands den land dom Rate Feb. 28 Central bank of— Central bank of— Date effective Rate Feb. 28 Date effective 2Y2 VA 2Y2 Italy Japan.... Java Latvia. . . Lithuania Nov. 28, 1935 Dec. 1, 1940 Feb. 8, 1944 Dec. 16, 1936 July 18, 1933 Oct. 28, 1945 Mexico Netherlands . New Zealand. Norway Peru Portugal June June July Jan. Aug. Jan. 4, 27, 26. 8, 1, 12, 1942 1941 1941 1946 1940 1944 Jan. 15, 1946 M a y 26, 1938 Mar. 30, 1939 Oct. 1, 1935 Dec. 3, 1934 Rumania South Africa. Spain Sweden Switzerland.. May June Dec. Feb. Nov. 8, 2, 1, 9, 26, 1944 1941 1938 1945 1936 France Germany Greece Hungary Ireland 2V2 Mar. 21, 1940 Mar. 1, 1936 Jan. 16, 1945 Nov. 8, 1940 3 British India. . 5 Bulgaria Canada 1^ Chile 3-4> Colombia 4 Czechoslovakia 1V2 Albania Argentina Belgium Bolivia Denmark Ecuador El Salvador. . . Estonia Finland In effect Dec. 31, 1936 Jan. 28, 1937... June 15 July 7 Aug. 4 Sept. 3 Nov. 13 May 10, 1938... May 13 May 30 Sept. 28 Oct. 27 Nov. 25 Jan. 4,1939... Apr. 17 May 11 July 6 Aug. 24 Aug. 29 Sept. 28 Oct. 26 Dec. 15 Jan. 25, 1940... Apr. 9 May 17 Mar. 17, 1941... TVtay 29 June 27 Jan. 16,1945... J a n . 20 Feb. 9 In effect Feb. 28, 1946 Jan. 20, Apr. 9, Feb. 11, Oct. 22, Nov. 23, Turkey United Kingdom U. S. S. R . . . . Yugoslavia. . July 1945 1940 1945 1940 1943 4 3.29 3 5 6 Sept. 11, 1944 Apr. 7, 1936 Jan. 14, 1937 Feb. 17, 1940 July 15, 1939 1, 1938 Oct. 26, 1939 July 1, 1936 Feb. 1, 1935 NOTE.—Changes since Jan. 31: None. 2Y2 OPEN-MARKET RATES [Per cent per annum] United Kingdom Month Bankers' acceptances 3 months Treasury bills 3 months Day-today money 1929—Dec. 1930—Dec. 1931—Dec. 1932—Dec. 1933—Dec. 1934—Dec. 1935—Dec. 1936—Dec. 1937—Dec. 1938—Dec. 1939—Dec. 1940—Dec. 1941—Dec. 1942—Dec. 1943—Dec. 1944—Dec. 4.76 2.30 5.85 1.02 1.06 .57 .71 .83 .75 .96 1.23 1.03 1.03 1.03 1.03 1.03 4.75 2.34 5.60 1.04 1.15 .47 .68 .84 .75 .93 1.24 1.01 1.01 1.01 1.01 1.00 1945—Jan.. Feb.. Mar. Apr.. May 1.03 1.03 1.03 1.03 1.03 1.03 1.03 1.03 1.03 .83 .53 .53 .01 .00 .00 .01 .00 1.00 1.00 1.00 1.00 .75 .51 .50 June July. Aug. Sept. Oct.. Nov. Dec. Germany Netherlands Private discount rate- Day-today money Private discount rate Money for 1 month 4.23 1.60 4.27 .81 .77 .70 .75 .78 .75 .80 1.03 1.00 1.03 1.00 1.00 1.02 6.98 4.82 7.33 3.88 3.88 3.50 3.00 3.00 8.14 5.54 8.45 4.91 4.97 3.52 1.39 1.57 .37 .52 .60 3.20 .76 .13 .13 2.25 2.25 .87 .86 .59 .00 .00 .00 .08 .48 .50 .50 .75 1.00 1.00 1.00 1.00 1.03 1.13 1.13 1.13 1.13 .96 2.13 2.13 2.13 .63 .63 Bankers' allowance on deposits 2.13 2.13 2.13 2.96 2.86 2.39 1.95 1.98 1.96 1.92 Sweden Switzerland Loans up to 3 months Private discount rate 3.15 18 75 50 50 50 50 25 1.00 1.00 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 NOTE.—For monthly figures on money rates in these and other foreign countries through 1941, see Banking and Monetary Statistics, Table 172, pp. 656-661, and for description of statistics see pp. 571-572 in same publication. MARCH 1946 353 COMMERCIAL BANKS United Kingdom (11 London clearing banks. Figures in millions of pounds sterling) Liabilities Assets 1 Cash reserves Money at call and Bills dis- Treasury Securities Loans to deposit counted receipts 2 short notice Deposits Other assets Total Demand Time Other liabilities 1938—December. 1939—December. 1940—December. 1941—December. 1942—December. 1943—December. 1944—December. 243 274 324 366 390 422 500 160 174 159 141 142 151 199 250 334 265 171 198 133 147 314 758 896 ,307 ,667 635 609 771 999 1,120 ,154 ,165 971 1,015 924 823 794 761 772 263 290 293 324 325 349 347 2,254 2,441 2,800 3,329 3,629 4,032 4,545 1,256 1,398 1,770 2,168 2,429 2,712 3,045 997 1,043 1,030 1,161 1,200 1,319 1,500 269 256 250 253 236 245 250 1945—January. . . February. . March April May June , July August... . September October. . . November December. 460 455 464 472 482 494 500 511 518 513 496 536 198 188 180 180 196 195 198 233 226 201 229 252 159 140 149 109 120 135 181 195 215 189 296 369 ,663 ,639 ,681 ,821 ,882 ,939 ,994 ,993 ,971 ,925 ,703 ,523 ,165 ,160 ,153 ,140 ,126 ,128 ,123 ,126 ,146 ,178 ,201 1,234 765 769 780 749 757 774 767 769 771 799 809 827 301 305 299 300 297 331 300 292 299 308 318 374 4,462 4,405 4,459 4,525 4,617 4,752 4,819 4,875 4,898 4,859 4,789 4,850 2,968 2,904 2,944 2,994 3,064 3,147 3,205 3,236 3,266 3,277 3,254 3,262 1,495 1,501 1,516 1,530 1,553 1,605 1,613 1,638 1,632 1,582 1,535 1,588 248 250 246 245 243 243 244 244 247 254 263 265 Assets Canada (10 chartered banks. End of month figures in millions of Canadian dollars) Liabilities Security loans abroad and net Securities Other due from loans and foreign discounts banks Entirely in Canada Cash reserves Security loans Other assets Note circulation Deposits payable in Canada excluding interbank deposits Other liabilities Total Demand Time 1938—December. 1939—December. 1940—December. 1941—December. 1942—December. 1943—December. 1944—December. 263 292 323 356 387 471 550 65 53 40 32 31 48 92 940 1,088 1,108 1,169 1,168 1,156 1,211 166 132 159 168 231 250 214 1,463 1,646 1,531 1,759 2,293 2,940 3,611 535 612 570 653 657 744 782 85 80 71 60 42 34 2,500 2,774 2,805 3,105 3,657 4,395 5,137 840 1,033 1,163 1,436 1,984 2,447 2,714 1,660 1,741 1,641 1,669 1,673 1,948 2,423 843 963 846 962 1,049 1,172 1,289 1945—January.. February. March. . . . April May June July August... September October. . November December. 567 539 544 598 622 622 591 581 582 640 646 694 95 80 78 82 125 123 135 112 109 130 239 251 1,156 1,125 1,094 1,047 1,299 1,142 1,079 1,021 1,002 1,009 1,372 1,274 244 254 219 269 251 248 237 242 237 242 229 283 3,571 3,624 3,606 3,799 731 717 708 750 775 766 769 789 750 812 888 779 32 31 31 30 29 29 28 28 27 27 26 26 5,049 5,021 4,938 5,210 5,616 5,540 5,269 5,229 5,269 5,573 6,013 5,941 2,525 2,390 2,214 2,475 3,053 2,894 2,528 2,396 2,331 2,582 3,197 3,076 2,524 2,631 2,725 2,735 2,563 2,646 1,283 1,287 1,280 1,306 1,312 1,326 1,316 1,324 1,344 1,392 1,350 1,386 Assets France (4 large banks. End of month figures in millions of francs) 3,885 996 802 835 3; 960 4,159 4,015 4,038 Cash reserves Due from banks Bills discounted 741 2,833 2,935 2,992 2,816 2,865 Liabilities Loans Deposits Other assets Total Demand Time Own acceptances Other liabilities 1938—December. 1939—December. 1940—December. 1941—December. 1942—December. 3,756 4,599 6,418 6,589 7,810 4,060 3,765 3,863 3,476 3,458 21,435 29,546 46,546 61,897 73,917 7,592 7,546 8,346 8,280 10,625 1,940 2,440 2,229 2,033 2,622 33,578 42,443 62,032 76,675 91,549 33,042 41,872 61,270 75,764 91,225 537 571 762 912 324 721 844 558 413 462 4,484 4,609 4,813 5,187 6,422 1943—October. . November December. 7,133 7,203 8,548 3,877 3,960 4,095 88,289 86,754 90,897 14,215 14,361 14,191 2,448 2,653 2,935 108,368 107,200 112,732 107,100 105,811 111,191 1,268 1,390 1,541 411 404 428 7,182 7,326 7,506 1944—January. . February. March. . . April May June July August... 7,510 4,125 4,116 4,010 4,000 4,056 4,039 3,970 3,933 90,024 91,847 92,648 95,337 96,443 96,245 101,529 100,287 13,737 13,936 16,481 16,568 16,666 16,584 16,758 17,731 1,676 1,618 1,775 1,853 2,014 2,087 2,261 2,522 110,485 112,846 115,558 118,370 120,312 122,149 127,704 127,160 108,883 111,164 113,696 116,449 118,307 120,102 125,493 124,627 1,601 1,682 1,862 1,922 2,005 2,048 2,212 2,533 419 412 404 382 413 403 368 435 6,168 6,035 6,366 6,505 6,546 6,780 7,000 7,054 7,776 7,414 7,499 8,092 10,377 10,555 10,175 x # Through August 1939, averages of weekly figures; beginning September 1939, end-of-month figures, representing aggregates of figures reported by individual banks for days, varying from bank to bank, toward the end of the month. 2 Represent six-month loans to the Treasury at \y% per cent through Oct. 20, 1945, and at Y% per cent thereafter. NOTE.—For back figures and figures on German commercial banks, see Banking and Monetary Statistics, Table 168, pp. 648-655, and for description of statistics see pp. 566-571 in same publication. 354 FEDERAL RESERVE BULLETIN FOREIGN EXCHANGE RATES [Averages of certified noon buying rates in New York for cable transfers. Australia (pound) Argentina (peso) Year or month Official 1937 1938 1939 . . 1940 1941 1942 1943 1944 1945 Special Export 32 959 32 597 30.850 29 773 29.773 29.773 29.773 29.773 29.773 223.704 23.704 24.732 25.125 25.125 Dec 29.773 29.773 29.773 29.773 29.773 29.773 29.773 29.773 29.773 29.773 29.773 25.125 25.125 25.125 25.125 24.125 25.125 25.125 25.125 25.125 25.125 25.125 1946—Jan 29.773 Official 25.125 . . 1945—Feb Mar Apr May June Tuly Aug Sept Oct Nov. Year or month 2 322.80 322.80 322.80 322.80 322.80 2 322.80 322.80 322.80 322.80 322.80 322.80 Free Belgium (franc) Brazil (cruzeiro1) Official Free 8.6437 5.8438 6.0027 6.0562 6.0575 6.0584 6.0586 6.0594 2 321'.17 22'. 2860 6.0602 5.1803 5.1802 5.1802 5.1802 5.1802 5.1802 5.1802 5.1802 5.1802 5.1802 5.1802 British BulIndia garia (rupee) (lev) 393.94 389.55 353.38 305.16 321.27 321.50 2321.50 321.35 320.87 320.70 321.31 321.41 321.41 3.3752 3.3788 3.3704 23.3760 Official Free 32.2883 2.2879 2.2857 2.2839 6.1983 37.326 1.2846 100.004 36.592 1 2424 99.419 33.279 21.2111 96.018 30.155 290.909 85.141 90.909 87.345 30.137 90.909 88.379 30.122 90.909 89.978 30.122 90.909 89.853 30.122 90.909 90.485 30.122 30.122 30.122 30.122 30.122 30.122 30.122 30.122 30.122 30.122 30.122 30.122 90.909 90.909 90.909 90.909 90.909 90.909 90.909 90.909 90.909 90.909 90.909 321.41 2.2840 6.0602 5.1802 30.122 2.1811 4.0460 2 . 1 J 6 7 2.8781 1.9948 2.5103 1.8710 22.0827 22.0101 40.204 40.164 40.061 40.021 2 39.968 .9055 .8958 .8153 2.6715 30.694 30.457 27.454 22.958 224.592 Chile (peso) Official China (yuan ShangExport hai) 5.1697 5.1716 5.1727 5.1668 25.1664 24.OOOO 29.606 4.0000 21.360 4.0000 11.879 4.0000 6.000 2 2 4.0000 5.313 90.553 90.295 90.506 90.753 90.828 90.736 90.475 89.908 90.358 90.736 90.725 90.909 90.712 GerFinColom- Czecho- Denmany Greece Hong Hunland gary bia slovakia mark (mark- France (reichs- (drach- Kong (franc) (dollar) (pengo) ma) (peso) (koruna) (krone) mark) ka) 22.069 21.825 20.346 219.308 Canada (dollar) 5.1248 5.0214 5.0705 5.1427 5.1280 5.1469 5.1802 6.0602 6.0602 6.0602 6.0602 6.0602 6.0602 6.0602 6.0602 6.0602 6.0602 6.0602 In cents per unit of foreign currency 19.779 19.727 19.238 18.475 219.770 Italy (lira) Japan (yen) 5.2607 5.2605 5.1959 5.0407 25.0703 28.791 28.451 25.963 23.436 223.439 NethNew Mex- erlands Zeaico (guild- land (peso) er) (pound) 1937 1938 1939 1940 1941 1942 1943 1944 1945 56.726 55.953 57.061 57.085 57.004 57 052 57.265 57 272 57.014 1 9711 27.750 22.122 19.303 18.546 20.538 20 569 20.577 20 581 20.581 1945—Feb Mar Apr 57 140 57.036 56 980 56 980 56.980 56 980 56 980 56.980 56 980 56.980 56 980 2 0189 2.0189 2.0189 2 0186 1.7822 20 582 324.42 20.582 324.42 20 582 324.42 20.582 324.42 324.42 20.582 322.69 20.582 322.16 20 581 321.99 20.578 322.60 20.57-8 20.578 437.933 322.70 20.579 37.933 322.70 56.980 .8410 20.580 37.933 322.70 May June July Aufif Sept.. Oct Nov Dec 1946—jan# m Year or month 3.4930 3.4674 23.4252 2 Straits Swe- SwitzSouth Norway Poland Portu- Ruma- Africa Spain Settle- den erland nia gal (krone) (zloty) (escudo) (leu) (pound) (peseta) ments (krona) (franc) (dollar) United Kingdom (pound) Official 1937 1938 1939 1940 1941 1942 1943 1944 1945 24.840 24.566 23.226 222.709 18.923 18.860 218.835 4.4792 4.4267 4.0375 3.7110 2 4.0023 .7294 . 7325 .7111 2.6896 Dec 1946—J an 400.50 Feb Mar June July Sept Oct Nov. 396.91 392.35 354.82 306.38 322.54 322.78 324.20 324.42 2 37.933 323.46 Uruguay (peso) Controlled Noncontrolled 489.62 6.053 57.973 25.487 22.938 494.40 79.072 484.16 5.600 56.917 25.197 22.871 488.94 64.370 440.17 10.630 51.736 23.991 22.525 443.54 62.011 236^789 397.99 9.322 46.979 223.802 22.676 2403.50 383.00 65.830 37.601 398.00 29.130 247.133 23.829 223.210 403.50 403.18 65.830 43.380 46.919 398.00 403.50 2403.50 65.830 52.723 403.50 403.50 65.830 52.855 398.00 65.830 53.506 403 50 398.00 399.05 2403.50 2403.02 65.830 55.159 398.00 398.00 398.00 398.00 398.00 398.30 400.50 400.50 400.50 400.50 400.50 1945 Free 55.045 55.009 53.335 253.128 403.50 403.50 403.50 403.50 403.50 402.95 402.69 402.49 403.24 403.38 403.37 65.830 65.830 65.830 65.830 65.830 65.830 65.830 65.830 65.830 65.830 65.830 Yugoslavia (dinar) 2.3060 2.3115 2.2716 2.2463 22.2397 54.197 54.197 54.253 54.265 54.265 55.489 56.125 56.175 56.282 56.290 56.290 403.38 65.830 56.290 1 2 3 4 Prior to Nov. 1, 1942, the official designation of the Brazilian currency unit was the "milreis." Average of daily rates for that part of the year during which quotations were certified. Based on quotations beginning Sept. 24. Based on quotations beginning Nov. 2. NOTE.—For back figures, see Banking and Monetary Statistics, Table 173, pp. 662-682. For description of statistics see pp. 572-573 in same publication, and for further information concerning developments affecting the averages during 1942 and 1943 see BULLETIN for February 1943, p. 201, and February 1944, p. 209. MARCH 1946 355 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] United States (1926 = 100) Year or month 1926 100 65 66 75 80 81 86 79 77 79 87 99 103 67 67 72 72 75 85 79 75 83 90 96 100 103 103 104 106 695 103 103 103 103 103 221 221 221 221 221 222 222 223 222 220 3 88 167 167 168 168 168 106 106 106 105 106 103 104 103 103 103 170 171 171 170 169 107 107 1946—January 100 102 114 111 115 146 172 189 196 196 96 91 90 90 96 111 107 111 143 184 210 218 223 161 180 178 186 198 238 251 278 311 329 70 63 62 68 76 89 95 99 116 132 166 169 105 105 105 106 106 1945—January February IVIarch. April IVIay June July August September October November December 901 144 i 92 i 90 i 96 Netherlands (1926-30 = 100) 237 97 93 98 102 104 106 106 107 110 112 114 116 2 U26 65 63 63 62 64 76 72 74 Japan (1928 = 100) 134 427 398 376 338 411 581 653 707 106 197 196 194 191 191 124 Switzerland (July 1914, = 100) (October 1900 = 100) Italy Germany (1913 = 100) 86 86 88 89 94 109 101 103 137 153 159 163 100 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1 France (1913 = 100) Sweden (1935 = 100) 195 195 196 196 196 United Kingdom (1930 = 100) Canada (1926 = 100) 219 214 '191 169 169 103 103 221 172 107 r Revised. Approximate figure, derived from old index (1913 =100). Average based on figures for 5 months; no data available since May 1940, when figure was 919. Average based on figures for 5 months; no data available since May 1940, when figure was 89. Sources.—See BULLETIN for January 1941, p. 84; April 1937, p. 372; March 1937, p. 276; and October 1935, p. 678. 1 2 3 WHOLESALE PRICES—GROUPS OF COMMODITIES [Indexes for groups included in total index above] Year or month Raw and Fully and chiefly partly manumanufactured factured goods goods Foods Industrial products 70 73 73 74 81 78 75 82 89 92 93 94 88 83 85 87 92 102 97 97 133 146 158 160 158 85 87 90 90 96 112 104 106 138 156 160 164 170 Farm products Foods Other commodities Farm products 100 100 100 100 100 100 48 61 70 48 55 70 51 65 79 81 86 69 65 68 82 106 123 123 61 71 84 82 86 74 70 71 S3 100 107 105 71 78 78 80 85 82 81 83 89 96 97 99 51 59 64 69 87 74 64 67 71 83 96 103 57 64 66 71 84 73 67 75 82 90 99 104 1926 1932 1933 1934 1935 1936 .. 1937 1938 1939 1940 1941 1942 1943 1944 1945 100 105 105 94 158 104 105 105 105 105 106 104 105 105 105 105 106 94 94 94 94 94 94 156 157 156 156 156 160 150 107 106 105 106 108 100 100 100 100 100 108 106 104 106 106 106 107 106 105 105 105 105 94 94 94 94 94 94 161 161 158 158 158 118 87 96 102 105 105 106 108 111 112 US 119 88 91 92 94 96 94 95 99 100 102 102 113 116 119- 121 125 126 126 1291 133; 134 135 175 158 89 176 176 175 175 175 158 130 91 173 173 174 174 175 175 180 132 1946—January IndusIndusAgricul- trial raw trial finand semi- ished tural products finished products products 175 99 99 99 99 99 100 129 127 124 127 131 May June c Corrected. Sources.—See 106 105 105 105 106 107 108 128 July August September October November December ( 1913=100 129 126 127 127 129 130 130 1945—January February March April Germany United K i n g d o m (1930=100) Canada (1926=100] United States (1926=100) 130 c 109 101 107 101 B U L L E T I N for M a y 1942, p . 4 5 1 ; M a r c h 1935, p . 180; a n d M a r c h 1931, p . 159. 356 FEDERAL RESERVE BULLETIN PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued COST OF LIVING [Index numbers] RETAIL FOOD PRICES [Index numbers] Year or month SwitzUnited United CanKingGerNether- erland States ada dom many lands (1935-39 (1935-39 (July (1913-14 (1911-13 (June = 100) = 100) = 100) = 100) 1914 1914 = 100) = 100) 1934 . 1935 1936 . . 1937 1938... 1939 1940... 1941 1942 . 1943 1944 1945 1945-January February March. . . . April May June July August.... September. October.. . November. December. 1946-January... 94 100 93 95 95 97 106 124 138 118 120 124 118 98 103 104 101 105 98 122 125 130 139 141 122 122 122 120 127 130 101 106 116 127 131 141 164 168 161 166 136 139 131 133 168 170 137 137 130 131 168 168 136 137 131 131 123 128 129 132 134 168 168 139 141 142 141 139 139 132 133 136 136 134 133 134 134 169 169 141 P133 96 98 169 96 96 141 143 121 123 99 103 101 115 1934 114 1935 120 1936 130 1937 130 1938 132 1939 146 1940 175 1941 200 1942 211 1943 215 1944 215 1945 98 101 102 147 154 156 125 125 126 129 128 140 136 132 130 137 137 138 151 137 139 140 148 102 106 112 117 118 158 184 199 200 199 126 128 119 119 201 203 208 209 127 127 119 119 202 202 119 119 128 129 129 129 129 129 119 120 120 121 120 120 202 202 203 204 207 205 203 203 129 130 120 120 203 203 209 209 209 209 210 210 211 210 210 208 207 207 130 P120 203 127 127 1946-January... 126 130 133 137 139 1 99 100 105 117 124 216 1945-January... 216 March. . . . 216 April 216 216 May 217 June 217 July 216 August September. 216 October . 213 November 210 December 210 168 170 176 172 169 169 140 141 130 2140 SwitzUnited Nether- erGerKingCanUnited land lands dom many ada States (1935-39 (1935-39 (July (1913-14 (1911-13 (June 1914 = 100) = 100) = 100) = 100) 1914 = 100) = 100) Year or month 3 174 193 203 ^Preliminary. 1 Revised index from March 1936 (see BULLETIN for April 1937, p. 373). 2 Average based on figures for 3 months; no data available since March 1940, when figure was 141. 3 Average based on figures for 5 months; no data available since May 1940, when figure was 149. Sources.—See BULLETIN for May 1942, p. 451; October 1939, p. 943; and April 1937, p. 373. SECURITY PRICES [Index numbers except as otherwise specified] Common stocks Bonds Year or month Number of issues. . United States (derived price)1 15 (1926 = 100) United Kingdom France Germany (December (1938=100)2 (average 1921 =100) price)3 87 50 1939 1940 1941. 1942 1943 1944 1945 113.8 115.9 117.8 118.3 120.3 120.9 122.1 112.3 118.3 123.8 127.3 127.8 127.5 128.3 114.2 6114.2 9 143.4 146.4 146.6 150.5 P152.1 1945—January. . . . February... March April May June July August September. . October November. . December... 121.6 121.9 122.7 122.9 122.3 122.1 122.3 121.7 121.6 121.9 122.0 121.9 128.5 128.7 128.7 129.3 128.1 127.8 128.3 128.3 128.2 128.5 127.8 127.5 153.8 154.2 154.4 153.1 153.8 151.9 151.1 150.6 150.9 150.2 150.3 P151.2 1946—January.... 123.8 3 139 99.0 100.7 103.0 6 103.3 Netherlands 4 United States (1935-39 = 100) 8 402 90.9 777.9 84.3 94.7 98.5 Nether- United Kingdom Germany 278 « 94.2 88.1 80.0 69.4 91.9 99.8 121.5 75.9 70.8 72.5 75.3 84.5 88.6 92.4 108.4 113.0 111.8 114.4 118.2 120.7 118.4 117.9 126.1 132.0 136.9 139.7 91.0 90.6 91.1 92.0 92.8 92.8 93.7 91.4 92.0 93.2 94.5 94.2 94.1 114.6 136.8 142.1 145.0 France lands (1938 = 100)2 (1930 = 100) 2 295 112 6 140 »308 479 540 551 P450 100 89.7 895.0 129.0 131.5 151.0 512 505 498 469 414 386 360 421 477 467 441 144.8 Preliminary. 1 Figures represent calculated prices of a 4 per cent 20-year bond offering a yield equal to the monthly average yield for 15 high-grade corporate bonds. Source.—Standard and Poor's Corporation; for compilations of back figures on prices of both bonds and common stocks in the United States see Banking and Monetary Statistics, Table 130, p. 475, and Table 133, p. 479. 2 Published by the Ministry of National Economy with new base of 1938 =100. Figures are for the last Friday of each month. The number of bonds included in the new index was increased to 50 (formerly 36). The index for stocks was based on 300 issues until Dec. 6, 1945, and on 295 thereafter as a result of the nationalization of five banks. For complete information on the composition of the bond and stock indexes see "Bulletin de la Statistique Generale" December 1942, pp. 511-513, and July-August 1942, pp. 364-371, respectively. For back figures for both indexes from 3 1938 through 1941 on a monthly basis see "Bulletin de la Statistique Generale" for October-December 1944, pp. 274-276. Since Apr. 1, 1935, the 139 bonds included in the calculation of the average price have all borne interest at 4}% per cent. The series prior to that date is not comparable to the present series, principally because the 169 bonds then included in the calculation bore interest at 6 per cent. 4 Indexes of reciprocals of average yields. For old index, 1929-1936, 1929 = 100; average yield in base year was 4.57 per cent. For new index beginning January 1937, Jan.-Mar. 1937 =100; average yield in base period was 3.39 per cent. 6 This number, originally 329, has declined as the number of securities eligible for the index has diminished. In May 1941 it was down to"287. 6 Average based on figures for 5 months; no data available June-Dec. 7 Average based on figures for 7 months; no data available May-Sept. 8 Average based on figures for 9 months; no data available May-July. • Average based on figures for 10 months; no data available Jan.-Feb. Sources.—See BULLETIN for November 1937, p. 1172; July 1937, p. 698; April 1937, p. 373; June 1935, p. 394; and February 1932, p. 121. MARCH 1946 357 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MARRINER S. ECCLES, Chairman M. S. SZYMCZAK JOHN K. MCKEE ELLIOTT THURSTON, CHESTER MORRILL, RONALD RANSOM, Vice Chairman ERNEST G. DRAPER R. M. EVANS Assistant to the Chairman Special Adviser to the Board of Governors OFFICE OF THE SECRETARY S. R. CARPENTER, Secretary BRAY HAMMOND, Assistant Secretary DIVISION OF BANK OPERATIONS EDWARD L. SMEAD, Director J. R. VAN FOSSEN, Assistant Director J. E. HORBETT, Assistant Director LEGAL DIVISION DIVISION OF SECURITY LOANS GEORGE B. VEST, General Counsel CARL E. PARRY, Director J. LEONARD TOWNSEND, Assistant General Counsel BONNAR BROWN, Assistant Director DIVISION OF PERSONNEL ADMINISTRATION ROBERT F. LEONARD, Director DIVISION OF RESEARCH AND STATISTICS WOODLIEF THOMAS, Director DIVISION OF ADMINISTRATIVE SERVICES CHANDLER MORSE, Assistant Director LISTON P. BETHEA, Director FRED A. NELSON, Assistant Director DIVISION OF EXAMINATIONS LEO H. PAULGER, Director C. E. CAGLE, Assistant Director FEDERAL OPEN MARKET COMMITTEE S. ECCLES, Chairman SPROUL, Vice Chairman MARRINER ALLAN OFFICE OF ADMINISTRATOR FOR WAR LOANS EDWARD L. SMEAD, Administrator GARDNER L. BOOTHE, II, Assistant Administrator FEDERAL ADVISORY COUNCIL CHAS. E. SPENCER, JR., BOSTON DISTRICT Vice President JOHN C. TRAPHAGEN, N E W YORK DISTRICT DAVID E. WILLIAMS, PHILADELPHIA DISTRICT JOHN H. MCCOY, CLEVELAND DISTRICT A. L. M. WIGGINS, RICHMOND DISTRICT RONALD RANSOM ROBERT STRICKLAND, ATLANTA DISTRICT M. S. SZYMCZAK EDWARD E. BROWN, CHICAGO DISTRICT IRA CLERK ERNEST G. DRAPER R. M. EVANS HUGH LEACH JOHN K. MCKEE W. S. MCLARIN, JR. C. S. YOUNG Secretary S. R. CARPENTER, Assistant Secretary GEORGE B. VEST, General Counsel J. LEONARD TOWNSEND, Assistant General Counsel WOODLIEF THOMAS, Economist E. A. KINCAID, Associate Economist JOHN K. LANGUM, Associate Economist EARLE L. RAUBER, Associate Economist O. P. WHEELER, Associate Economist JOHN H. WILLIAMS, Associate Economist ROBERT G. ROUSE, Manager of System Open Market Account CHESTER MORRILL, 358 President JAMES H. PENICK, ST. LOUIS DISTRICT JULIAN B. BAIRD, MINNEAPOLIS DISTRICT A. E. BRADSHAW, KANSAS CITY DISTRICT ED H . WINTON, DALLAS DISTRICT RENO ODLIN, SAN FRANCISCO DISTRICT WALTER LICHTENSTEIN, Secretary HERBERT V. PROCHNOW, Acting Secretary FEDERAL RESERVE BULLETIN CHAIRMEN, DEPUTY CHAIRMEN, AND SENIOR OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Chairman1 Bank of Deputy Chairman President First Vice President Boston.... Laurence F. Whittemore William Willett Allan Sproul L. R. Rounds New York. Albert M. Creighton Henry I. Harriman Beardsley Ruml William I. Myers Vice Presidents E. G. Hult J. C. Hunter2 Carl B. Pitman O. A. Schlaikjer E. O. Douglas J. W. Jones H. H. Kimball L. W. Knoke Walter S. Logan A. Phelan H. V. Roelse Robert G. Rouse John H. Williams V. Willis R. B. Wiltse Philadelphia. . Alfred H. Williams Thomas B. McCabe W. J. Davis Warren F. Whittier E. C. Hill Wm. G. McCreedy C. A. Mcllhenny 2 Philip M. Poorman C. A. Sienkiewicz Cleveland. . . . George C. Brainard Reynold E. Klages Ray M. Gidney Wm. H. Fletcher W. D. Fulton J. W. Kossin 3 A. H. Laning B. J. Lazar Martin Morrison W. F. Taylor Richmond. . . . Robert Lassiter W. G. Wysor Hugh Leach J. S. Walden, Jr. Claude L. Guthrie3 E. A. Kincaid R. W. Mercer C. B. Strathy Edw. A. Wayne Atlanta. . . Frank H. Neely J. F. Porter Simeon E. Leland W. W. Waymack W. S. McLarin, Jr. Malcolm H. Bryan C. S. Young Charles B. Dunn V. K. Bowman L. M. Clark H. F. Conniff S. P. Schuessler Allan M. Black2 Neil B. Dawes J. H. Dillard E. C. Harris John K. Langum O. J. Netterstrom A. L. Olson Alfred T. Sihler St. Louis...... Russell L. Dearmont Douglas W. Brooks Chester C. Davis F. Guy Hitt Minneapolis. . Roger B. Shepard W. D. Cochran J. N. Peyton O. S. Powell Kansas City. , H. G. Leedy Robert B. Caldwell Henry 0. Koppang Robert L. Mehornay Dallas J. R. Part en R. B. Anderson R. R. Gilbert W. D. Gentry E. B. Austin3 R. B. Coleman H. R. DeMoss John Phillips, Jr. G. H. Pipkin D. W. Woolley3 W. E. Eagle W. H. Holloway L. G. Pondrom San Francisco. Henry F. Grady Harry R. Wellman Ira Clerk C. E. Earhart J. M. Leisner3 H. N. Mangels H. F. Slade W. F. Volberg Chicago Wm. E. Peterson O. M. Attebery William B. Pollard A. F. Bailey Henry H. Edmiston C. A. Schacht C. M. Stewart E. W. Swranson H. G. McConneli Sigurd Ueland A. W. Mills2 Otis R. Preston Harry I. Ziemer O. P. Cordill L. H. Earhart C. O. Hardy OFFICERS IN CHARGE OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Bank of New York Buffalo Federal Reserve Bank of Chief Officer Branch I. B. Smith* Minneapolis. . . . Helena Kansas City. . . . Denver Oklahoma City Omaha Cincinnati Pittsburgh B. J. Lazar J. W. Kossin5 Richmond Baltimore Charlotte W. R. Milford4 W. T. Clements* Atlanta Birmingham Jacksonville Nashville New Orleans P. L. T. Beavers* Geo. S. Vardeman, Jr.* Joel B. Fort, Jr.* E. P. Paris4 Chicago Detroit E. C. Harris5 St. Louis Little Rock Louisville Memphis A. F. Bailev6 6 C. A. Schacht William B. Pollard5 Also Federal Reserve Agent. MARCH 1946 R. E. Towle* G. H. Pipkin5 0. P. Cordill5 5 L. H. Earhart 5 Cleveland 1 Chief Officer Branch 2 Cashier. 3 W. E. Eagle5 8 L. G. Pondrom W. H. Holloway* El Paso Houston San Antonio Dallas W. N. Ambrose* D. L. Davis* W. L. Partner4 C. R. Shaw* San Francisco.. . Los Angeles Portland Salt Lake City Seattle Also Cashier. 4 Managing Director. 5 Vice President. 359 FEDERAL RESERVE SYSTEM BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES 3 P ==== BOUNDARIES OF FEDERAL RESERVE DISTRICTS BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES if BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM w ® FEDERAL RESERVE BANK CITIES ?3 • FEDERAL RESERVE BRANCH CITIES OCTOBER I. 1945 VE SYSTEM, td w