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FEDERAL RESERVE
BULLETIN




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

MAY, 1916

WASHINGTON
GOYEKNMENT PRINTING OFFICE
1916

FEDERAL RESERVE BOARD.
EX OFFICIO MEMBERS.
WILLIAM G. MCADOO,
Secretary of the Treasury,
Chairman.
JOHN SKELTON WILLIAMS,
Comptroller of the Currency.




CHARLES S. HAMLIN, Governor.
FREDERIC A. DELANO, Vice Governor.
PAUL M. WARBURG.
W. P. G. HARDING.
ADOLPH 0. MILLER.
H. PARKER WILLIS, Secretary.
(On leave of absence.)
SHERMAN ALLEN, Assistant Secretary and Fiscal
Agent.
M. 0. ELLIOTT, Counsel.




SUBSCRIPTION PRICE OF BULLETIN.
The Federal Reserve Bulletin is distributed without charge
to member banks of the system and to the officers and directors
of Federal Reserve Banks.

In sending the Bulletin to others the

Board feels that a subscription should be required.

It has

accordingly fixed a subscription price of $2 per annum.

Single

copies will be sold at 20 cents.

Foreign postage should be added

when it will be required.

Remittances should be made to the

Federal Reserve Board.

Member banks desiring to have the

Bulletin supplied to their directors may have it sent to not less
than ten names at a subscription price of $1 per year.

HI

TABLE OF CONTENTS,
Work of the board
.......
....
Meeting of governors
Opinion of Attorney General rechanging location of Federal Reserve Banks
Acceptances not subject to stamp tax
Federal Reserve note issues
.....
,
Cost of b a n k examinations.. .•
:
Acceptances to 100 per cent
.......
.... i . . . . . .
Withdrawal of bonds securing circulation
Commercial failures in 1916
....,
Discount rates in effect
..
Earnings and expenses of Federal Reserve Banks
*
Gold settlement fund
.
Individual and b a n k deposits of national banks
.
Informal rulings of the Federal Reserve Board
,
Fiduciary powers granted
Additions to and withdrawals from the intradistrict clearing system.
Law department
Business conditions throughout the 12 Federal Reserve districts
Distribution of discounts
Acceptances
•'.
Federal reserve bank statements
..'.
Gold imports and exports
Interdistrict movement of Federal Reserve notes
IV




r...

«.• .•
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.>,-..
^

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205
206
207
211
212
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258

FEDERAL RESERVE BULLETIN
VOL. 2

No. 5

MAY 1, 1916

This bill has been reported favorably to the
House of Representatives from the Committee
During the month of April the Federal Reon Banking and Currency with this amendserve Board has been occupied largely with
ment suggested by the Board:
matters of current administration. Two topics,
1
'Consent of the Federal Reserve Board may
however, of general public interest have been
be procured before the person applying theregiven much time and thought:
for has been elected as a class A director of a
(1) Statements to committees of Congress Federal Reserve Bank or as a director of any
in connection with proposed amendments to member bank.77
the Federal Reserve Act pending in Congress,
Slight increases in rates have, with the apboth those suggested by the Board and those proval of the Federal Reserve Board, been
coming from other sources.
made by two Federal Reserve Banks during
(2) Work in connection with a proposed April. On April 12 the Federal Reserve Bank
country-wide clearing and collection plan.
of Kansas City increased its rates for commerThe Board has come to a substantial agree- cial paper by one-half of 1 per cent, fixing the
ment--as to the principles of a clearing and col- rate for 10 days at 4 per cent and that from 10
lection plan, which shall include not only the to 90 days at 4J per cent. The rate for comhandling of checks drawn against member modity paper at the Federal Reserve Bank of
banks, but also those drawn on nonmember Richmond was on April 22 increased from 3 per
banks when presented by member banks. cent to 3J per cent, and the rate of 3 | per'cent
As there is an immense amount of detail work for acceptances, which had before covered a
to be done in connection with this matter, it is period of 60 days, made to cover this class of
expected that the following month will be de- paper maturing in 90 days.
voted to the working out of these details. To
F. O. Watts, president of the Third National
better accomplish this, a committee of the Bank of St. Louis, has been elected a member
Board will work in conjunction with a com- of the Federal Advisory Council for the Federal
mittee of governors and transit managers of the Reserve Bank of St. Louis. Filling the vacancy
Federal Reserve Banks.
caused by the death of Felix Martinex, of El
The Kern bill amending the Clayton Act was Paso, Tex., tfie Federal Reserve Board on April
passed by the Senate in the following lan- 17 elected H. O: Wooten, of Abilene, Tex., a
guage:
class C director of the Federal Reserve Bank of
11
And provided • further, That nothing in thisDallas. Mr. Wooten's term will expire on
Act shall prohibit any officer, director, or em- December 31, 1916. He is president of the
ployee of any member bank, or class A director H. O. Wooten Grocery Co. at Abilene.
of a Federal Reserve Bank who shall first proThe Federal Reserve Bank of Richmond on
cure the consent of the Federal Reserve Board,
which Board is hereby authorized, at its discre- April 1 made payment of 1 per cent dividend
tion, to grant, withhold, or revoke such con- for the period ending December 31, 1915,
sent, from being an officer, director, or em- amounting to $30,387.65. This is in addition
ployee of not more than two other banks, to the 5 per cent dividend declared and paid at
banking associations, or trust companies,
whether organized under the laws of the United the end of the calendar year.
Taking up a request from one of the banks
States or any State, if such other bank, banking association, or trust company is not in sub- in the panhandle district pf Texas to be transstantial competition with such member bank." ferred from the Federal Reserve Bank of Dallas




WORK OF THE BOARD.

205

206

FEDEEAL RESERVE BULLETIN.

to the Federal Reserve Bank of Kansas City,
the Board, after making a canvass of the banks
located in that section, voted on April 10 that
no change be made in the district lines at this
point and that this decision be communicated
to the banks interested.
The transfers of stock, made necessary by
the separation of banks located in Fairfield
County, Conn., from the Federal Reserve Bank
of Boston and their being attached to the Federal Reserve Bank of New York, and certain
banks in Louisiana being separated from the
Federal Reserve Bank of Dallas and attached
to the New Orleans Branch of the Federal Reserve Bank of Atlanta, have been in due course
completed.
Believing that the directors of Federal Reserve Banks should be given every inducement
and facility for making themselves familiar
with the details of the conduct and condition
of their banks, the Board has suggested that
each director be requested to read and initial
the semiannual report of examination of his
Federal Reserve Bank and that the chairman
of each board of directors advise the Federal
Reserve Board when the report has been read
by the directors and had their full consideration.
The Board several months ago adopted the
practice of furnishing each Federal Reserve
Bank examined with a copy of the report of
the examination.

MAY 1,1916.

settlement fund held by the Federal Reserve
Board for the Federal Reserve Banks and
Federal Reserve Agents, the receipt from collectors of customs and internal revenue of
checks carrying exchange charges, the method
of calculating dividends for Federal Reserve
Banks, the conversion and disposition of
United States bonds and notes, "no protest"
items, amendments to the Federal Reserve Act,
the replenishing of 5 per cent redemption funds
for member banks and collection and clearance.
The chief attention of the Governors was
devoted to the discussion of a plan for countrywide collection and clearance of checks. Frequent conferences have been held with a subcommittee of the Federal Reserve Board on.
this subject.
At the time the meeting adjourned the
fundamental principles and general features of
a collection and clearance plan had been determined. The further development of the
machinery to make effective the plan was left
to a subcommittee which was authorized to remain in Washington and assist in working out
the details of the proposed plan. This committee consists of Messrs. Rhoads, Seay,
McKay, Hendricks, Talley, and Attebery.
State Bank Admissions.

The First State Bank of De Kalb, Tex., was
admitted to the Federal Reserve System during
the month of April, the number of State inMeeting of Governors.
stitutions which have now joined the system
The governors of the Federal Reserve Banks, being 34.
called in conference by the Federal Reserve
Meeting of Federal Reserve Agents.
Board, held a meeting in Washington during the
week of April 17. There were present at the
The Federal Reserve Agents of the twelve
meeting Messrs. Aiken, Strong, Rhoads, Federal Reserve Banks, who are also chairmen
Fancher, Seay, McCord, McDougal, Miller of the boards of directors, have been requested
Wold, Van Zandt, Calkins, and McKay; also by the Federal Reserve Board to meet in
Mr. Tupper, Deputy Federal Reserve Agent, of Washington on Monday, May 29, 1916.
St. Louis, and Mr. Hendricks, Mr. Talley, and
This meeting is called in accordance with an
Mr. Attebery, in charge of the transit depart- understanding reached when the Federal Bements of the banks of New York, Dallas, and serve Agents held their last conference. It
St. Louis, respectively.
will take up many matters having to do with
The topics considered by the meeting in- the work of the Board and the operation of
cluded the question of the handling of the gold- the banks.




MAY

1, 1910.

FEDERAL KESBRVE BULLETIN.

207

tion required of each Federal Reserve Bank
as a condition precedent to the commencement
It is held, in an opinion of the Attorney of business ?
General of April 14, that the Federal Reserve
I.
Board does not posses the power to change
In my opinion of November 22, 1915, I
the present location of any Federal Reserve
expressed the view that the Federal Reserve
Bank, and that the minimum capitalization of
Act does not confer on the Federal Reserve
$4,000,000 required by the Federal Reserve Board the power to abolish any of the existing
Act for Federal Reserve Banks as a condi- Federal Reserve Banks or Federal Reserve
tion precedent to commencing business is not districts. I believe that the reasoning of that
a continuing requirement. The conclusions opinion is equally applicable to both branches
reached by the Attorney General in response to of the first question now submitted.
Section 2 of the Federal Reserve Act proan inquiry submitted by the Federal Reserve vides:
Board to the President of the United States
"As soon as practicable, the Federal Reare contained in the following paragraphs:
serve Bank Organization Committee shall designate not less than eight nor more than twelve
"To sum up my conclusion on the question cities to be known as Federal Reserve cities,
of whether the Federal Reserve Board can and shall divide the continental United States
legally change the present location of any * * * into districts, each district to conFederal Reserve Bank, I am of opinion that tain only one of such Federal Reserve cities.
the Board has no such power, and that such The determination of said organization compower is lacking whether there has been mittee shall not be subject to review except by
alteration or readjustment in the district the Federal Reserve Board when organized:
lines or not."
Provided, That the districts shall be appor"My conclusion as to the second question tioned with due regard to the convenience and
submitted is that the Federal Reserve Act, customary course of business and shall not
in prescribing a minimum capitalization of necessarily be coterminous with any State or
$4,000,000 for Federal Reserve Banks as a States. The districts thus created may be
condition precedent to commencing business, readjusted and new districts may from time to
does not require that such minimum capitali- time be created by the Federal Reserve Board,
zation shall be preserved under the circum- not to exceed twelve in all. Such districts
stances."
shall be known as Federal Reserve districts
and may be designated by number. *• •*' *
The text of the opinion follows:
"Said organization committee shall be auDEPARTMENT OF JUSTICE,
thorized * * * to make such investigation
Washington, April 14,1916. as may be deemed necessary by the said comSIR: At the request of the Federal Reserve mittee in determining the reserve districts and
Board, you have submitted the following in designating the cities within such districts
questions for my opinion:
where such Federal Reserve Banks shall be
I. Can the Federal Reserve Board legally severally located."
change the present location of any Federal
The same section further provides:
Reserve Bank:
"The said committee shall supervise the or(a) In the case where there has been no anization, in each of the cities designated, of a
alteration in the district lines; and
'ederal Reserve Bank, which shall include in
(fr) In the case where there has been such its title the name of the city in which it is situreadjustment of district lines as in the opinion ated, as 'Federal Reserve Bank of Chicago.' "
of the Board necessitates the designation of
Since the Act thus provides that each city
a new Federal Reserve city in order that due designated as a Federal Reserve city is to be the
regard may be given to the convenience and location of a Federal Reserve Bank, it follows
customary course of business as required by that a change in the location of a Federal
section 2 of the Federal Reserve Act?
Reserve Bank would in effect be the designaII. Must the Federal Reserve Board, in tion of a new Federal Reserve city and the
exercising its admitted power to readjust abandonment of one previously designated.
preserve the $4,000,000 minimum capitaliza- I find no more warrant in the Act for the
Location of Federal Reserve Banks.




f

208

FEDERAL BESEBVE BULLETIN.

abandonment of one Federal Reserve city and
the designation of a new one than I do for the
abolition of a Federal Reserve district when
once established.
The power to designate a new Federal Reserve city (12 cities having been named by the
Organization Committee) or to phange the location of a Federal Reserve Bank is not expressly
conferred by the Act on the Federal Reserve
Board. If the Board possesses such power, it
is only by implication from the provision that—
"The determination of said organization
committe shall not be subject to review except
by the Federal Reserve Board when organized:
Providedi That the districts shall be apportioned with due regard to the convenience and
customary course of business and shall not
necessarily be coterminous with any State or
States. The districts thus created may be readjusted and new districts may from time to
time be created by the Federal Reserve Board,
not to exceed twelve in all.77
In my opinion there is no clear indication,
either in the provision just quoted or elsewhere
in. the Act, of an intent.to confer on the Federal
Reserve Board the power to change the location
of Federal Reserve Banks by the designation of
new Federal Reserve cities. On the contrary,
there are indications of an opposite intent. As
stated in my opinion of November 22, 1915,
above referred to, "the merely negative statement that the determination of the Organization Committee shall not be subject to review
except by the Federal Reserve Board when
organized clearly can not be enlarged into an
affirmative grant of power to the Board to review and set aside everything done by the
Organization Committee. The reasonable view
is that by that language Congress meant that
the determination of the Organization Committee should not be subject to review at all,
except in so far as the subsequent provisions
specifically authorize a review by the Federal
Reserve Board. The only subsequent provision authorizing a review of the determination
of the Organization Committee by the Federal
Reserve Board is contained in the sentence,
'The districts thus created may be readjusted
and new districts may from time to time be
created by the Federal Reserve Board, not to
exceed 12 in all/ "
Again, as stated in that opinioji, " a reading
of the Act shows at once that the Organization
Committee was created not merely for the
purpose of attending to the formalities of
organization or to serve as a stop-gap until




MAY 1,1916.

the Federal Reserve Board should come into
existence, but that it had an independent
function to perform and to that end was
invested with wide powers. That is to say,
its function was to organize the system as
contradistinguished from the function of the
Federal Reserve Board, which was primarily
to administer the system."
The duty of designating Federal Reserve
cities belonged to the Reserve Bank Organization Committee as a part of the organization
of the system, and the committee was required
by the Act to designate not less than 8 ndr
more than 12 cities. This duty is named
first among those imposed upon the Organization Committee, and it is imposed by the same
provision of section 2 which required the committee to divide the United States info Federal
Reserve districts. The same considerations
that indicate an intention that the several
districts should be permanent would also indicate that the designation of the cities was not
to be made for temporary purposes, but was
intended to be permanent, subject; of course,
to change by Congress. The designation was
to be made only after thorough investigation,
and the same machinery was provided to
facilitate both the determination of the districts and the designation of the cities. Thus,
section 2 provides:
"Said Organization Committee shall be
authorized to employ counsel and expert aid,
to take testimony, * * * a n ( j £O m a k e
such investigation as may be deemed necessary * * * in determining the reserve
districts and in designating the cities within
such districts where such Federal Reserve
Banks shall be severally located."
In my opinion, this coupling of the duty of
determining the districts with the duty of designating the Federal Reserve cities within the
several districts shows an intention on the
part of Congress that the cities so designated
are to constitute the fixed centers in the scheme
or system of division, the duty of designating
the cities being coordinate with the duty of
forming districts around them. It was left to
the discretion of the Organization Committee
whether it should designate the full number of
Federal Reserve cities and establish the full
number of Federal Reserve districts permitted
by the Act. The committee elected to designate and establish the full number authorized,
thereby practically suspending the operation of
the provision of the Act that "new districts
may from time to time be created by the Fed-

MAY

1, 1916.

FEDEBAL KESEEVE BULLETIN.

eral Reserve Board not to exceed 12 in all."
The primary if not. the only purpose of that
provision must have been to take care of the
situation in the event that the Organization
Committee had designated less than 12 Federal
Reserve cities.
The fact that the Federal Eeserve Board,
aside from the provision relating to the creation
of new districts from time to time, was merely
given the power to readjust districts suggests
that there was to be some permanent characteristic or element in the districts created by
the Organization Committee. If, however, in
addition to the power which the Federal Reserve Board has of readjusting districts by
changing their boundary lines, it also possessed
the power to change the location of the respective Federal Reserve cities within such districts, then the Board could, by successive
changes of cities and boundaries, entirely obliterate existing districts and substitute in their
place new districts totally different from those
created by the Organization Committee. I do
not thinK that Congress intended to confer
such a power.
The Act provides that each Federal Reserve
Bank is to include the name of the city in
which the bank is located. By section 4 it is
provided that the organization certificate of
each bank shall state specifically—
"The name of such Federal Reserve Bank,
the territorial extent of the district over which
the operations of such Federal Reserve Bank
are to be carried on, the city and State in
which said bank is to be located, the amount of
capital stock, and the number of shares into
which the same is divided * *" *."
Upon the filing of such certificate with the
Comptroller of the Currency in the manner
prescribed such Federal Reserve Bank—
"Shall become a body corporate and as
such, and in the name designated in such
organization certificate, shall have power
* * * to have succession for a period of
20 years from its organization unless it is
sooner dissolved by an act of Congress, or
unless its franchise becomes forfeited by
some violation of law." (Sec. 4.)
It is to be noted that there is no provision
in the Act by which the Federal Reserve
Board may change the name of a Federal
Reserve Bank or amend its certificate in this
respect. The whole tenor suggests permanency.
The omission of Congress to grant, by express language the pwer to change Federal
Reserve cities is significant, especially in




38288—16

2

209

view of the language of section 11 (e) of the
Act, which comers the power—
"To add to the number of cities classified
as reserve and central reserve cities * * • * • .
or to reclassify existing reserve and central
reserve cities, or to terminate their designation as such."
It would have been equally easy had Congress desired to grant the authority to designate ne^7 Federal Reserve cities to have
said so in express terms. (Tillson v. United
States, 100 U. S., 43, 46, quoted in my opinion
of Nov. 22, 1915, supra.)
It may be suggested that changes in the
"customary course of business" or other
changes not foreseen by the Organization
Committee may result in inconveniences which
the Federal Reserve Board can not remedy
if its power to change the location of Federal
Reserve cities is denied. The answer is that
the remedy is with Congress, in so far as i t
may not already be supplied by section 3,
which authorizes the establishment of as
many branch banks in any district as may be
found expedient.
To sum up my conclusion on the question
of whether the Federal Reserve Board can
legally change the present location of any
Federal Reserve Bank, I am of opinion that
the Board has no such power, and that such
power is lacking whether there has been an
alteration or readjustment in the district
lines or not.
II.
Coming now to the consideration of the
second question submitted, namely, whether
the Federal Reserve Board, in exercising
its admitted power to readjust, must preserve
the $4,000,000 minimum capitalization required of each Federal Reserve Bank as a
condition precedent to the commencement
of business, I am of opinion that this question
is to be answered in the negative.
The Federal Reserve Act provides in section 2:
"No Federal Reserve Bank shall commence
business with a subscribed capital less than
$4,000,000."
The same section also contains a provision
requiring subscriptions to the capital stock to
be paid—
" One-sixth * * * on call of the Organization Committee or of the Federal Reserve Board, one-sixth within three months
and one-sixth within six months thereafter

210

FEDERAL RESERVE BULLETIN.

MAY

1, 1916.

and the remainder of the subscription, or any liquidation or insolvency of such bank, the
part thereof, shall be subject to call when board of directors shall cause to be executed a
deemed necessary by the Federal Reserve certificate to the Comptroller of the Currency
Board * * * / \
I showing such reduction of capital stock and
Section 4 contains the following provision: I the amount repaid to such bank."
"When the minimum amount of capital
In section 9 it is provided:
stock prescribed by this Act for the organiza"If at any time * * * a member bank
tion of any Federal Reserve Bank shall have has failed to comply with * * * the regubeen subscribed and allotted, the Organiza- lations of the Federal Reserve Board, it shall
tion Committee shall designate any five be within the power of the said Board, after
banks * * * to execute a certificate of hearing, to require such bank to surrender its
organization. * * *
stock in the Federal Reserve Bank; *' * *
"Upon the filing of such certificate with the and said Federal Reserve Bank shall, upon
Comptroller of the Currency, the said Federal notice from the Federal Reserve Board, be reReserve Bank shall become a body corporate.'7 quired to suspend said bank from further
The decrease of capital stock is authorized privileges of membership, and shall within
thirty days of such notice cancel and retire its
by the following provision of section 5:.
"The outstanding capital stock shall be stock and make payment therefor in the manner
})
increased from time tp time as member banks herein provided.
increase their capital stock and surplus, or as
It will be observed from the foregoing quoadditional banks become members, and may tations that the Federal Reserve Act expressly
be decreased as member banks reduce their provides that no Federal Reserve Bank shall
capital stock or surplus or Cease to be mem- commence business with a subscribed capital
bers/ 7
of less than $4,000,000. (Sec. 2.) They were
Additional provisions relating to the de- each to be organized when the minimum amount
crease of capital stock are found in sections of capital stock had been subscribed. (Sec.
4.) Only three-sixths of the capital subscribed
5 and 6, as follows:
"SEC. 5. * * * When a member bank is required to be paid in, the remainder being
reduces its capital stock it shall surrender a left "subject to call when deemed necessary by
proportionate amount of its holdings in the the Federal Reserve Board." (Sec. 2.)
capital of said Federal Reserve Bank, and
The Act specifically provides for the decrease
when a member bank voluntarily liquidates, of capital stock (1) as member banks reduce
it shall surrender all of its holdings of the their capital stock; and (2) as they cease to be
capital stock of said Federal Reserve Bank members. (Sec. 5.)
and be released from its stock subscription not
Member banks may cease to be members for
previously called. In either case the shares any of four causes—
surrendered shall be canceled and the member
(a) Voluntary liquidation (sec. 5);
bank shall receive in payment therefor * * *
(b) Insolvency (sec. 6);
a sum equal to its cash-paid subscriptions on
(c) Violation of regulations of Federal Rethe shares surrendered *• * *' less any serve Board (sec. 9);
liability of such member bank to the Federal
(d) Transfer from one Federal district to
Reserve Bank.
another through readjustment of districts
"SEC. 6. If any member bank shall be de- (sec. 2).
clared insolvent * * * the stock held by
The Act specifically requires the cancellation
it in said Federal Reserve Bank shall be can- of capital stock where membership ceases
celed * * * and all cash-paid subscrip- under (a), (6), or (c). (Sees. 5, 6, and 9.)
tions on said stock, with one-half of one per
No specific provision is made for cancellation
cent per month from the period of last dividend, of capital stock where membership ceases
not to exceed the book value thereof, shall be under (d).
first applied to all debts of the insolvent memWhile the minimum capital had to be subber bank to the Federal Reserve Bank, and scribed in order to commence business, the
the balance, if any, shall be paid to the re- maintenance of that minimum is nowhere preceiver of the insolvent bank. Whenever the scribed by the Act. The fact, that the Board
capital stock of a Federal Reserve Bank is re- is to determine whether more than half the
duced, either on account of a reduction in subscription is to be paid in seems to indicate
capital stock of any member bank or of the that the minimum to be subscribed was fixed




MAY

1, 1916.

as a precaution to make sure that ample credit
should be pledged to insure the success of the
system.
Not only is the maintenance of the minimum
not prescribed, but express provision is made
for reducing the capital stock as, or whenever,
member banks cease to be members. This
language is general and includes in its terms
all cases in which member banks cease to be
members. It is coupled with no expressed
condition that the minimum capitalization be
preserved; and since the Federal Reserve Act
required the organization of the Federal
Reserve Banks upon the subscription of the
minimum, it is obvious that any reduction
whatever made after commencing business
might reduce the capital below the minimum.
It is plain that a member bank can be a member only of the Federal Reserve Bank of the
district in which both are located. This is
obvious from the nature of the Federal Reserve
districts and is assumed in sections 2, 4, and 9.
Of necessity, therefore, when the Federal Reserve Board, in the exercise of its power to
readjust, transfers a member bank from one
district to another, such transferred bank must
cease to be a member of the Federal Reserve
Bank of the district from which it is transferred.
When it thus ceases to be a member, the capital
of the Federal Reserve Bank may be reduced;
and there is nothing in the Act requiring the
reduction to be made subject to the maintenance of a minimum capital.
It is to be noted that section 5 provides that
the capital stock shall be increased and may be
decreased under the conditions therein mentioned. Succeeding provisions of sections 5,
6, and 9, however, make it clear that may is
here used in the sense of shall, as applied to
cases arising under (a), (5), and (c). It seems
reasonable to infer that it is used in the same
sense as. .applied to (d). But whether so used
or used in its more literal sense is here immaterial, for so far as the answer to the question
submitted is concerned, the result is the same
whether the Board is required or merely authorized to reduce the capital when member banks
cease to be members.
Nor can any significance be attached to the
fact that specific provision is made for reducing
the capital stock of a Federal Reserve Bank in
eases arising under (a), (6), and (c), while the
Act is silent as to cases arising under (d). The
cases specifically provided tor include cases
where tne member banks cease to be members
as the direct result of their own acts or conduct.
Cases under {d) arise where banks cease to be




211

FEDERAL RESERVE BULLETIN.

members as an incident of the exercise of the
power of the Federal Reserve Board to readjust
districts. The grant of the specific power to
readjust carries with it, as fully as if expressed
in the Act, the power to do what is necessarily
incidental. (Broom's Maxims, 7th ed., 505;
199 U. S., 12.)
My conclusion as to the second question submitted is that the Federal Reserve Act, in prescribing a minimum capitalization of $4,000,000'
for Federal Reserve Banks as a condition precedent to commencing business, does not require
that such minimum capitalization shall be
preserved under the circumstances.
Very respectfully,
T. W. GREGORY,

Attorney General,
The PRESIDENT,

The White House.
Acceptances Not Subject to Stamp Tax,
The following ruling as to revenue stamps on
acceptances has been made by the Acting Commissioner of Internal Revenue^ Treasury Department, and no stamps need be used:
APRIL 3,1916.
Hon. CHARLES S. HAMLIN,

Governor Federal Reserve Board,
Washington, D. G
SIR: In response to your communication
of the 27th ultimo, inclosing copy of a letter
received, you are advised that drafts, acceptances, overdrafts, and post-dated checks are
not taxable under the act of October 22, 1914,
as promissory notes:
i our attention is invited to paragraph 1 of
T. D. 2170, as follows:
(1) In view of the decision made by the
Supreme Court of the United States in the
case of the United States v. Isham (17 Wall.,
496), that "the, liability of an instrument to
a stamp duty, as well as the amount of such
duty, is determined by the form and face of the
instrument, and can not be affected by proof
of facts outside of the instrument itselt/' this
office is of the opinion that drafts, acceptances, overdrafts, and post-dated checks are
not taxable under the above act as promissory
notes, even though they are used, in such a
way as to perform some of the functions of a
promissory note.
Respectfully,
DAVID A. GATES,

Acting Commissioner.

212

Federal Reserve Issues.
Careless reading of the monthly statement
issued by the Treasury Department, showing
the total amount of money and currency in
circulation, is responsible for certain mistaken
inferences with respect to the status of Federal
Reserve note issues in the country's circulation. That there has been a marked increase
in the amount of money in circulation is made
clear by the figures compiled by the Treasury
Department, but careful analysis shows that
the increase is represented almost exclusively
by the increase in the amount of gold certificates in circulation, representing gold held in
the Treasury, the net addition to the total
volume of currency made by the Federal
Reserve notes being an insignificant fraction.
The statement issued on April 1 indicates
that the general stock of money in the United
States increased between April 1, 1915, and
April 1, 1916, by $455,205,000, of which
$440,622,000 represents the increase in the
amount of gold coin and bullion held in
the Treasury. The increase of money in circulation during the same period was about
$433,003,000, of which $365,900,000 represents
the increase in the circulation of gold certificates.
Included in the total stock of money is the
amount of Federal Reserve notes issued by
the Government to the Federal Reserve
Banks. The statement indicates an increase
by $148,647,000 in the amount of such notes
issued during the year, and an increase of
$147,091,000 in the amount of such notes in
circulation. The latter amount is arrived at
by deducting from the amount of notes issued
to the banks the amount held in the Treasury
among the assets of the Government.
The circulation statement also shows in a
separate column the amount of gold held by
the Federal Reserve Banks and the Government against Federal Reserve notes issued.
This amount increased during the last 12
months from $35,151,000 to $173,558,000,
i. e., by $138,407,000 It may be seen, therefore,
that while the circulation statement indicates
an increase of $147,091,000 in the circulation




MAY 1, 1916.

FEDEBAL RESERVE -BULLETIN.

of Federal Reserve notes, it also indicates that
of this total no less than $138,407,000 merely
took the place of gold or gold certificates,
which were withdrawn from circulation and
impounded in the vaults of the Federal Reserve
Banks and of the Government. If it is desired
to determine the share of Federal Reserve
notes in the total increase of circulation, the
only proper method is to offset the increase in
the circulation of these notes by the increase
in the amounts of gold in the hands of the
Federal Reserve Banks and the Government
and held as security against the Federal
Reserve notes issued. This is shown in the
following exhibit:
Apr. 1, 1916. Apr. 1,1915.
Federal Reserve notes in circulation...
$187,728,000
Gold impounded against Federal Reserve notes issued... 173,558,000
Net addition to total
money in circulation.

14,170,000

Increase.

$40,637,000

$147,091,000

35,151,000

138,407,000

5,486,000

8,684,000

It is seen that the net expansion in circulation which may be properly imputed to Federal
Reserve notes is $8,684,000 for the 12 months
between April 1, 1915, and April 1, 1916. Additional light upon this question of "inflation"
is thrown by an analysis of the Federal Reserve
Board's bank statement for April 14, 1916,
from which the following pertinent data are
gleaned:
Federal Reserve notes issued to Federal Reserve Banks..
$186, 761,000
Of this amount there are secured by 100per cent deposit of gold
176,883,000
The remainder........
is secured by 100 per cent of commercial paper and $3,951,000 of gold, which is 40 per
cent of the paper-secured notes.
The Federal Reserve Banks have on hand
$22,526,000 of Federal Reserve notes.
The amount of Federal Reserve notes in actual circulation is thus less b y . . . .
than the $176,883,000 of gold withdrawn from
circulation, and held by the Government
against Federal Reserve notes outstanding.
The Federal Reserve Banks have bought up
to and including Apr; 14, 1916, United
States bonds, most of which have the circulation privilege, amounting to
.

9,878,000

12,648,000

48,158,000

MAY 1, 19.16.

FEDERAL BESEHVE- BULLETIN.

Practically all of these bonds were sold by
national banks which formerly had circulation
out against them, which circulation has now
been retired. The Federal Reserve Banks
have taken down Federal Reserve bank-note
circulation against a portion of these bonds,
but in some cases this has been done simply for
emergency purposes, and the Federal Reserve
bank notes not actually issued.
The actual amount of Federal Reserve bank
notes in circulation as of the 14th day of April
was $1,423,000. The reason why the circulation statement shows more than this is because Federal Reserve bank notes, when issued
by the Treasury to the banks, are treated ".as
issued" even though held in the vaults of the
bank.

218

but the Comptroller of the Currency has
pointed out to your committee that under the
old system certain, national banks in; reserve
and central reserve cities, having assets of
$1,000,000 or less and capital from $300,000 to
$400,000, paid a fee for examination ranging
from $56 to $70, according to the amount of
their capital stock and resources, while under
the operation of the Federal Reserve Act the
same banks are paying a fee ranging from
$36.50 to $44.50.
Banks having resources of from $1,500,000
to $10,000,000 in reserve and central reserve
cities, paid for their examinations under the old
system a fee ranging from $75 to $230, according
to capital axid resources, but these banks are
now paying from $54.50 to. $224.50.
The comptroller informs your committee that
only 38 per cent of the national banks in reCost of Bank Examinations.
serve and central reserve cities have resources
In the March issue of the Federal Reserve in- excess of $10,000,000, and that, therefore,
Bulletin (p. 122) there was published a brief 62 per cent of the banks in reserve and central
statement on the cost of national-bank; exam- reserve cities are now, according to this scale,
inations, accompanied by a table showing in paying for their examinations less than they
parallel columns the relative cost of examina- paid under the old plan, although examinations
tion under both the old and the new systems.' are now more thorough and efficient than they
The -Federal Reserve ' Board's committee on were before.
audit and examination has recently submitted
A bank with assets of $25,000,000, having
a report to the Board containing the following capital of, say, $5,000,000, in reserve and cenfurther information on this subject.
tral reserve cities formerly paid a fee of $410;
now the assessment against such a bank is
As explained in the above-mentioned statement, under the present system the examiners $524.50, the increase being, warranted by the
are no longer compensated by fees, but receive' additional time devoted to the work by the
fixed salaries out of a fund provided by assess- examiners and the greater thoroughness of their
ments levied, upon the banks. Under the old examinations.
A bank in reserve and central reserve cities
system payments made by banks amounted in
j with resources of $50,000,000 and a capital of
many cases to much less than cost of the examination. Assessments upon banks were made, I $10,000,000 paid under the old system a fee of
as far as "country banks" were concerned, ! $710; under the new arrangement such a bai)k
upon a basis of capital stock alone, without | pays $1,024.50, but it can not reasonably be
reference to total assets. In reserve and central contended that approximate^ $1,000 is an exreserve cities higher assessments were levied, cessive charge for a thorough examination of
which more nearly approximated the cost of | a bank having assets of $50,000,000.
making the examinations. As a result there | Assessments against banks having assets of
were gross inequalities, which have been recti- more than $50,000,000 are also greater under
fied under the operation of the new law. It the present plan than formerly. The Compis true that some banks now pay considerably troller states to your committee, however,
more for examinations than they formerly did, that of about 7,600 national banks in the




214

FEDERAL RESERVE BULLETIN.

United States, only 32 banks, or less than onehalf of 1 per cent of the total number, at the time
of the December 31,1915, call, had assets in excess of $50,000,000, and of these 32 banks 31 were
located in reserve and central reserve cities.
Under the old system fees for the examination of "country banks 7 ' (that is, banks not in
reserve and central reserve cities) having
assets of less than $3,000,000 and capital in
proportion, or, say, $25,000 to $750,000,
ranged from $20 to $75; under the present
system these banks pay from $25.50 to $84.50,
being an increase of from $5.50 to $9.50 per
bank, according to the capital and assets.
These figures apply to 6,939 banks, or,96
per cent of the total of 7,238 country banks.
There can be no question, however, that under
the old system the statutory fee was in many
cases wholly inadequate to provide fair compensation for efficient service. The Comptroller states that those country banks which
have resources in excess of $3,000,000 and capital of $600,000 or more constitute about 4 per
cent of all Country banks, and that under the
old system with the standard regulations they
were charged a fixed fee of $75, irrespective of
resources.
The charge now imposed upon them is in
proportion to their resources, so that a country
bank with $5,000,000 of resources and capital
of, say, $750,000, which formerly paid $75,
now pays $124.50, or an increase of $49.50.
Experience under the old system showed that
it was impossible to make a thorough examination of the larger country banks for $75.
A fe6 of $224.50 for a thorough examination
of a bank having $10,000,000 of assets is therefore not to be regarded excessive. There is a
basis for the statement that in a few isolated
cases banks have been charged under the new
system five to ten times as much as they were
under the old system, but this only occurs in
those cases where a very large bank is located
in a nonreserve city. A specific instance has
been dited where a bank of this kind with
resources of approximately $50,000,000 paid,
under the old plan, only $75, due to its




MAY

1, 1916.

rating as a country bank, whereas this bank
now pays $1,024.50. Surely it can not be contended that this is an unreasonable charge for
examining so large a bank.
On December 31, 1915, there were only 23
country banks (one-third of 1 per cent), in
the United States which had resources in
excess of $10,000,000.
All country banks are now charged for examinations a fixed fee of $25, plus 2 cents per
$1,000 of assets in excess of $25,000. Under
the old system, examiners were required to pay
traveling expenses and hotel bills out of the
statutory fees received. As the earnings of
the examiner depended upon the number of
examinations made, there was a constant temptation to speed up the work of examination at
the expense of thoroughness with superficiality
as the inevitable result.
These conditions no longer exist, and an examiner is now free to devote as much time to
each bank as may be necessary for a thorough
and efficient examination. Partly because of
the superficial character of national-bank examinations as formerly made, and for the additional reason that examiners7 reports were
sent to the Comptroller, without copies being
given to the directors of the banks examined
for their information, many banks felt the necessity of providing for additional and more
thorough examinations by special auditors,
involving a considerable expense.
The Comptroller of the Currency has notified
the Board that it is his intention to inaugurate
the custom of furnishing the board of directors
of each national bank examined with a report
by the examiner, after each examination, from
which the directors will have an opportunity
of informing themselves of actual conditions
in their banks and of passing judgment upon
the character of the examination. It is, therefore, believed that in most cases banks will
find that independent examinations will hereafter be a useless duplication and will discontinue them, so that the result will be a substantial saving in the expense incurred for
examinations.

MAY 1, 1916..

FEDERAL RESERVE BULLETIN.

Acceptances up to 100 Per Cent.
The following member banks of the Federal
Reserve System have requested and have to
this date been granted authority by the Federal Reserve Boa^d to accept, up to 100 per
cent of their capital and surplus, drafts or
bills of exchange growing out of transactions
involving the importation or exportation of
goods:

215

to 100 per cent. Such banks therefore do not
need to avail themselves of the 100 per cent
privilege, The list, above printed, of banks
given special permission to accept up to 100
per cent does not include these latter banks.

Withdrawal' of Bonds Securing Circulation.
Under the construction placed upon the
National Bank Act by the office of the CompFirst National Bank, Boston, Mass.
j troller of the Currency, an amount not to exceed
Merchants' National Bank. Boston, Mass.
| $9,000,000 of lawful money may be deposited in
National Shawmut Bank, Boston, Mass.
I any one month for the purpose of retiring
Second National Bank, Boston, Mass.
national-bank circulation, and withdrawing
American Exchange National Bank, New York City.
United States bonds on deposit to secure circuBank of New York N. B. A., New York City.
Atlantic National Bank, New York City.
lation. The limit for April was reached on the
Irving National Bank, New York City.
first day of the month. Applications for withMechanics and Metals National Bank, New York City.
drawals are listed in the office of the CompFourth Street National Bank, Philadelphia, Pa.
troller in the order of their receipt and acted
Tradesmen's National Bank, Philadelphia, Pa.
Philadelphia National Bank, Philadelphia, Pa.
uponin the order of the deposits of lawful money.
First National Bank, Baltimore, Md.
The $9,000,000 limit applies only to deposits
Merchants-Mechanics' National Bank, Baltimore, Md.
of lawful money. Any national bank, therefore,
Bank of Charleston N. B. A., Charleston, S. 0.
having on hand its own notes, signed or unMerchants National Bank, Hampton, Va.
signed, may return them to the department
Merchants National Bank, Richmond, Va.
National Bank of Danville, Danville, Va.
for cancellation, and thus obtain the release of
Whitney-Central National Bank, New Orleans, La.
a corresponding amount of United States
Commercial National Bank, New Orleans, La.
bonds, provided the amount remaining with
First National Bank, Chicago, 111.
the Treasurer is equal to the minimum bond
National Bank of the Republic, Chicago, 111.
requirement provided by the National Bank Act.
First National Bank, Hutchinson, Kans.

First National Bank, St. Joseph, Mo.
Crocker National Bank, San Francisco, Oal.
Anglo and London-Paris National Bank, San Francisco,
Cal.
First National Bank, San Francisco, Cal,
Wells-Fargo Nevada National Bank, San Francisco, Cal.
Bank of California N. A., San Francisco, Cal.
First National Bank, Portland, Oreg.

All member "banks are authorized under section 13 of the Federal Reserve Act to accept
in transactions based upon foreign trade up to
an amount not exceeding 50 per cent of their
paid-in capital and surplus.
A number of national banks and State banks
and trust companies which have joined the
Federal Reserve System have such large capital
and surplus that they can accept to a much
greater amount, based on 50 per cent of their
capital and surplus, than can other member
banks which have received special permission
from the Federal Reserve Board to accept up




Sale of 8 Per Cent Bonds.
Advice has been received by the Federal
Reserve Board from one of the Federal Reserve Banks of the sale of the new Government
3 per cent 30-year bonds, provided for in section 18 of the Federal Reserve Act, at 103f,
when issued, and the sale of $100,000 of
one-year notes at 100}. The market for these
conversion bonds and notes seems to be established at about these figures.
January Bulletin Exhausted,
No copies of the January issue of the Federal
Reserve Bulletin remain for distribution. It
is suggested that those who have copies of this
number preserve them for binding, as the
Federal Reserve Board can not supply additional copies.

216

Commercial Failures in 1916.
There are given below statistics of commercial failures in the United States for the first
quarter of 1916, compiled from the records of
R. G. Dun & Co. These show for each Federal Reserve district the total number of commercial failures, the amount of assets, and the

District.

1—Boston
2—New York
3—Philadelphia...
4—Cleveland
5—Richmond
6—Atlanta
7-Chicago...
8 - S t . Louis
9—Minneapolis
10—Kansas City...
11—Dallas
12—San Francisco.

1915
1914
1913

United S t a t e s . . .
..

Number.

Assets.

32,232,370
64,600,535
54,543,553
51,764,096

Trading.

Other commercial,

Banks.

Liabilities. Num-i Liabilities. Num- Liabilities. Num- Liabilities. Num- Liabilities.
ber.
ber.
ber.
ber.
160 $1,630,732
332 8,997,340
75 1,322,727
815,532
101
791,212
70
57 2,137,721
130 2,626,646
653,112
65
918,027
43
33
340,421
27 1,200,761
150 2,372,979

$4,120,019
16,768,121
3,280,424
3,194,279
3,456,399
6,907,150
7,077,544
3,189,366
1,992,283
1,814,695
3,309,130
6,383,336

490 $1,768,330
945 5,276,521
361 2,425,346
416 2,503,716
423 2,265,118
510 3,659,430
587 4,732,317
392 2,202,761
180 1,768,533
209
861,370
289 1,613,216
5.85 3,155,712
5,387
7,216
4,826
4,458

amount of liabilities, and in a subdivision of
the table this same information as to the failures in manufacturing, trading, and other commercial lines. In addition, the bank failures
are given, and, with the totals for the entire
United States for the three months, the figures
for the corresponding period in the three preceding years.
Manufacturing.

Total.

No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.

MAY 1,1916.

FEDERAL EESERVE BULLETIN.

61,492,746
105,703,335
83,221,826
76,832,277

1,243
1,580
1,147
1,052

23,807,210
46,211,855
34,644,880
30,634,667

548
273
286
343
442
427
310
130,
164
252
3,860
5,348
3,489
3,233

31,048,161
48,712,139
36,500,570
36,590,109

$490,809
2,030,517
386,480
214,721
45,613
814,721
1,097,378
87,542
55,314
570,633
170,105
673,542

$1,998,478
5,740,264
1,571,217
2,164,026
2,619,574
3,954,708
3,353,520
2,448,712
1,018,942
903.641
1,938,264
3,336,815
284
190
173

$480,000
2,525,000
25,000
880,000

6,637,375
10,779,341
12,076,376
9,607,501

4,220,000
17,128,839
10,020,579
2,180,871

160,000
150,000

DISCOUNT KATES,
Discount rates of each Federal Reserve Banhin effect Apt. 27, 1916.

Maturities
of 10 days
and less.

Maturities
of over 10
to 30 days,
inclusive.

Boston...
New York
Philadelphia,....
Cleveland
Richmond
Atlanta..
Atlanta (New Orleans branch)..
Chicago
St. Louis.......
Minneapolis.
Kansas City
Dallas...
San Francisco..-...-.
1
2 Bate for commodity paper maturing within 90 days.
8 Rate for bills of exchange in open market operations.

Maturities
of over 30
to 60 days,
inclusive.

Trade acceptances.
AgriculMaturities tural and
of over 60 live-stock
to 90 days, paper over To 60 days, Over 60 to
inclusive. 90 days. inclusive. 90 days,
inclusive.

Commodity
paper.

Paper
bought
in open
market.

*3f-4

I

3-5

Rate for trade acceptances bought in open market without member bank indorsement.
* A rate of 2 to 4 per cent for bills with or without member bank indorsement has been authorized.
&
Rate for commodity paper maturing within 30 days, 3J per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4£ per cent; over 90 days,
percent.




MA?

1, 1916.

FEDERAL RESEBVE BULLETIN.

EARNINGS AND EXPENSES OF FEDERAL
RESERVE BANKS DURING QUARTER
ENDING MARCH 31, 1916.
There are presented below detailed figures of
earnings and expenses of each of the Federal
Reserve Banks for the first three months of the
the current year, in continuation of similarfigures
published in the Bulletin for previous quarters.
The combined earnings of all the Federal
Reserve Banks for the first quarter of the
present year are given as $755,707.11, and the
total current expenses as $498,039.48. Expenses of operation were $415,861.39 for the
quarter, while the cost of Federal Reserve notes
issued by the banks, expenses caused by the
exchange of Federal Reserve notes between
banks, and by the shipment of notes to Washington for destruction, also amounts written off to
provide for the gradual amortization of the cost
of notes issued by certain banks prior to July
1, 1915, other amortization charges, and depreciation on furniture and equipment account for
the additional quarterly expense of $82,178.09.
The excess of total earnings over total current expenses for the quarter was $257,667.63,
or at the yearly rate of about 1.9 per cent on
an average paid-in capital of $54,904,000. The
most favorable financial results are reported by
the southern banks. Thus, Richmond shows
an excess for the quarter of earnings over current expenses of $43,948.51, or at an annual
rate of 5.25 per cent on a calculated average
capital of $3,350,000; Atlanta, including its
branch at New Orleans, a like: excess of
$24,273.63, or at an annual rate of 4.01 per
cent on an average capital of $2,419,000, and
Dallas an excess of $29,805.54, or at an annual
rate of 4.34 per cent on an average capital of
$2,749,000.
The Boston bank's excess of quarterly earnings over current expenses was $41,792.18, or at
the annual rate of 3.24 per cent on an average
capital of $5,158,000. This excess is more
than sufficient to wipe out the deficit of
$34,603 for the period ending December 31
1915. Kansas City reports an excess of
$25,628.70, or at the rate of 3.4 percent on
an average capital of $3,011,000. Chicago




38288—16—3

217

earned net $51,246.16, or at the rate of 3.08
per cent per annum on an average capital of
$6,650,000.
The St. Louis and San Francisco banks show
excesses of current expenses over earnings for
the quarter, though the latter bank had a surplus of earnings over operating expenses.
Of the total earnings for the quarter, 34.2
per cent was from bills discounted, 20.5 per
cent from municipal warrants, 20.2 per cent
from bills purchased in the open market, 19.6
per cent from United States bonds, and the
remainder from sundry operations, largely exchange and commissions received. These percentages vary according to banks and groups
of banks. Thus, 58.5 per cent of the Boston
Federal Reserve Bank's earnings came from
bills bought, almost exclusively bankers7 acceptances, and nearly 28 per cent from municipal warrants. The New York bank reports
about 48 per cent of its earnings under the
head of " Bills bought in open market" and
42.4 per cent under the head of " Warrants/ 7
while the per cent share of earnings from discounted paper was less than 3 per cent for the
Boston bank and less than 2 per cent for the
New York bank. In the case of the three southern banks the earnings from discounts account
for 88 per cent of their total earnings for the
quarter. Chicago derived almost one-third of
its quarterly earnings from United States bonds
and about 30 per cent from discounts, while
Cleveland7s largest share of earnings came from
" municipal warrants.77
Of the total expenses of operation, about 28
per cent went as compensation to bank officers
arid about 25 per cent as salaries to the clerical
staff of the banks. The amount contributed
by the banks for the support of the Federal
Reserve Board was the next largest item and
constituted over 13 per cent of the total expenses of operation, while the item of "rent"
represents 9.4 per cent of these expenses.
The total current expenses shown are exclusive of $16,839.68 expended in the purchase
of additional furniture and equipment and of
$12,211.03, the cost of printing and shipping
Federal Reserve notes.

Earnings and expenses of each Federal Reserve Bank and of the system as a whole for the quarter ending Mar. -31, 1916.

to

M
00

EARNINGS.

Boston.

Bills discounted—members..
Bills bought in open market.
Investments:
United States bonds
Warrants......
Commissions received
Amortization of discount on
United States b o n d s . . . . . . .
Sundry profits..
Total

New York.

Philadelphia.

Cleveland. Richmond.

Atlanta
(including
. New
Orleans
branch).

Chicago.

St. Louis.

Minneapolis.

Kansas
City.

Dallas.

San Francisco.

Total.

$1,720.44
44,520.52

$2,324.47. $2,179.81
61,584.43 13,440.61

$3,558.43 $63,900.19 $46,985.64 $30,929.69
4,939.35
2,269.74 10,425.83
1,093.60

$9,785.00 $12,154.54 $29,218.35 149,996.31
4,139.92
2,874.64
62.50
2,716.88

$5,594.87 $258,347.74
4,802.05 152}870.07

4,999.45
21,328:03
906.94

2,292.16
54,615.65
7,791.71

16,727.16
16,741.16

21,290.45
23,108.99

2,649.58

239.93

609.27

107.41

76,124.96

128,848.35

49,, 698.01

53,004.63

3,576.02
830.42

33,217.47
14,598.99

12,843.55
4,332.43

2,708.73
69,400.23

1,465.77
869.37
17.58

11,501.06

54,316.83

100,673.04

9,811.45
8,143.18

22,194.79
3,422.84

6,732.02
189.01

13,137.78
6,401.32

148,288.07
154,581.39
8,716.23

3,047.86

1,121.68

8,367.48
316.65

1,037.69

1,196.27

8,367.48
24,536.13

34,148.76

34,105.49

66,236.99

58,017.53

31,132.29

755,707.11

*

CURRENT E X P E N S E S .
Expenses of operation:
Assessment account of
expenses of Federal
Reserve Board
Federal Advisory Council
Governors' conferences..
Federal Reserve Agents'
conferences.
Salaries:—
Bank officers
Clerical staff..
Special officers and
watchmen
Another
Directors'—
Fees
Per diem allowance..
Traveling expenses..
Officers' and clerks' traveling expenses (less
amounts included in
Governors' and Federal Reserve Agents'
conferences)
Legal fees
Rent
Telephone
Telegraph
Postage
Expressage
Insurance and premiums
on fidelity bonds..
Light, heat, and power..
Printing and stationery..
Repairs and alterations..
All other expenses, n..s..
Total expenses of operation




$5,158.15 $11,055.20

.9.40

$5,938.14

$3,353.80

$2,422.40

$6,655.70

$2,782.50

$2,546. 55

$3,037.80

$2,772.60

$3,942.75

$54,934.99

82.25
316.03

147.13
497. 79

150.00
381.69

88.92
400.53

302.20
426.34

150.00
377.78

276. 75
486.41

221.45
452.73

150.00
168.30

150.00
727.43

1,832.20
4,889.89

19,699.92
22,369.40

9,499.98
8,680.78

9,687.48
6,642.03

6,728.12
6,825.27

7,666.64
8,537.22

12,750.00
12,385.99

11,675.00
8,399.08

6,499.98
4,962.42

6,124.91
9,^11.33

8,229.15
6,600.97

9,900.00
5,350.85

116,836.13
104,539.46

1,547.50
693.34

1,497.07

96.00
14.40

150. 00
410.65

799.20

1,320.00
853.12

405.00
300.00

233.75

428.68
466.00

30.00

6,507.20
2,737.51

810.00
230.00
164. 70

1,200.00
360.00
445.00

770.00
220.00
198.37

420.00
230.00
238.25

780.00
480.00
660.99

720.00
484.00
646.16

520.00
230.00
357.50

1,190.00
210.00
226.50

610.00
180.00
269.60

1,140.00
745.00
1,194.83

360.00
250.00
494.20

600.00
130.00

9,120.00
3,749.00
4,896.10

263.35
400.00
3,125.01
221.23
7.40
490.84
1.52

10,300.00
356.66
69.60
2,214.52
30.28

1,000.00
2,124.99
279.89
8.20
793.14
487.20

172.16
500.06
1,513.08
233.99
53.04
620.72
3.40

i -17.71
725.00
1,000.00
100.60
55.34
1,090. 70
418.51

280.56
150.00
3,004.00
82.02
108.84
854.11

100.50
645.16
6,643.75
313.10
70.60
1,479.27
166.42

40.39
375.00
1,250.01
142.29
37.93
1,175.62
38.31

140.53
150.00
2,124.99
156.89
104.13
2,516.83
483.93

307.40
622.40

4,180.57
184.81
53.99
1,304.38
356.85

245.78
159.69
629.53
1,339.57

i -18.40
.1,508.67
3,690.00
123. 70
84.87
429.95
38.00

1,570.28
6,076.29
38, &56.40
2,440.96
813.63
13,599.61
3,363.99

861.82
403.50
754.31
8.70
778.32

583.35

1 -5.25
372.00
1,007.43
11.75
772.83

417.74
65.18
669.63
161.50
1,190.12

1,256.95
420.28
i, 030.64
58.67
1,440.69

556.54

1,016.10

715.16
19.77
170.84

1,112.75
122.91
962.03

286.10
22.10
486.80

411.35
322.50
1,226.64
104.29
1,614.37

105.00
497.78
777.78
6.50
2,574.99

919.01
92.40
1,135.37
331.24
722.00

6,960.92
2,438.09
12,178.39
887.37
16,276.25

34,033.95

28,572.79

25,451.72

28,748.77

49,426.88

34,550.69

20,936.11

31,484.50

27,312.42

29,887.84

415,861.39

113.50
255.61

399.25

8,374.95
4,574.12

54.63

76.00

301.50

383.48
264.45
429.97
39.94
1,616.73

454.83

*3,*946."53"

26,924.95

78,530.77

3,032.61

256.73

126.10

Cost of Federal Reserve notes
issued by bank (including
expressage, insurance, etc.).. 2 1,582.40
Miscellaneous charges account Federal Reserve
notes
Amortization charges:
Federal Reserve notes
All other organization
expenses
4,325.43
Premiums on United
States bonds
Depreciation on furniture
1,500.00
and equipment
Total current expenses.
Excess of earnings over current expenses.

% 040.00

765.07

4,999.98

901.56
5,845.09

78.50

100.67

283.15

1,212.00

2,400.00

1,380.54

727.38

11,621.46

10,631.16

1,800.00

6,621.36

5,635.62

47,840.14

899.57

182.48

9,041.85

3,939.63

654.12

13,453.15

394.44

39.05

143.39
1,349.01

924.57

914.1§

34,332.78

102,961.61

38,898.15

37,181.15

25,451.72

30,043.20

49,426.88

41,792.18

25,886. 74

10,799.86

15,823.48

43,948.51

24,273.63

143.39
8,836.80

793.68

1,200.00

900.00

47,187.53

26,730.55

40,608.29

28,211.99

37,005.63

498,039.48

51,246.16 3-13,038.77

7,374.94

25,628.70

29,805.54 » -5,873.34

257,667.63

1,255.38

COST OF FURNITURE AND EQUIPMENT, INCLUDING VAULTS.
Balance as reported on Jan.
1,1916 .
Additional purchases during
quarter.

$9,595.24 $26,980.36

$6,228.92 $23,000.00 $20,346.13

$54,159.64

$41,828.85 $33,255.41

$6,422.59 $269,995.50

$18,491.31 $20,187.08

$9,500.00

157.69

193.30

382.50

950.00

7,744.77

126.25

626.25

758.89

20,344.77

9,693.30

6,611.42

23,950.00

28,090.90

54,285.89

42,455.10

34,014.30

6,422.59

286,835.21

793.68

1,200.00

900.00

23,950.00

27,297.22

53,085.89

41,555.10

34,014.30

6,422.59

277,998.41

2,882.44

3,017.59

Total
Depreciation charged during
quarter

12,477.68

29,997.95

1,500.00

1,349.01

924.57

914.16

Balance Apr. 1,1916

10,977.68

28,648.94

17,566-. 74

19,430.61

18,491.31

1,255.38
9,693.30

5,356.04

16,839.68

8,836.80

COST OF UNISSUED FEDERAL RESERVE NOTES.
Balance as reported Jan. 1,
1916....
$38,633.35 $232,086.79 $43,172.04 $42,757.61 $17,368.34
Additional cost of Federal
Reserve notes during quarter....
3,883.58
414.32
299.65
187.60 I
151.20
Total
Cost of Federal Reserve notes
issued and charged to current expenses during quarter

<2,082.40

Balance Apr. 1,1916

36,965.27 | 223,346.44




39,047.67 232,386.44

43,359.64

42,908.81

43,359.64

42,143.74

9,040.00

$9,502.36

9,502.36

21,251.92

9,463.31

$19,932.85 $11,252.52

$9,924.60 $34,914.91 $542,288.89

240.00

930.47

11.50

4,065.00

12,211.03

2,407.77

22,363 46

20,172.85

12,182.99

9,936.10

38,979.91

554,499.92

394.44

78.50

9.57

654;12

13,953.15

62,407.77

22,363.46

19,778.41

12,104.49

9,036.53

38,325.79

540,546.77

2,027.71

21,251.92

765.07

$60,380.06 $22,363.46

39.05

3

1 Credit.
2 Exclusive of $500, cost of Federal Reserve bank-note plates charged to "Expenses of operation" (all other expenses n. s.).
a Deficit.
*Includes $500 cost of Federal Reserve bank-note plates charged to expenses of operation.

to

220

FEDERAL BESEBVE BULLETIN.

GOLD SETTLEMENT FUND.

MAY

1, 1916.

Amount of clearings and transfers, Federal Reserve Banks,
from Mar. 24, 1916, to Apr, 20, 1916^ inclusive.

Obligations settled through the gold settlement fund for the four weeks ending April 20
amounted to $213,222,000 with a change in
ownership of the gold held in the fund, during
the period, of $21,911,000, or 10.27 per cent
of the obligations settled, a proportion much,
higher than usual. Some of the changes, however, operated to offset those previously
made, so that the percentage of net changes of
ownership to total obligations settled since
the establishment of the fund declined to 6.01
per cent.

Total
clearings.

Balances.

Settlement of—
Mar. 30,1916.....
Apr. 6,1916
Apr. 13,1916
Apr. 20,1916

$46,875,000
51,726,000
51,684,000
55,930,000

$4,355,000
8,235,000
4,419,000
5,075,000

$529,000
2,491,000
3,168,000
819,000

Previously reported

206,215,000
588,895,000

22,084,000
68,032,000

7,007,000
22,850,000

795,110,000

90,116,000

29,857,000

Total since Jan. 1, 1916..
Total for 1915

1,052,649,000

Grand total

Transfers.

1,847,759,000

Changes in oiunership of gold.

Federal Eeserve Bank of—
Decrease.

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

Increase.

$4,287,000
87,413,000

.

Balance to
credit Mar*
23,1916, plus
Balance
net deposits Apr. 20,1916.
of gold since
that date.

7,427,000
6,198,000
9,418,000
12,696,000
18,988,000

$1,443,000
20,587,000
1,180,000
9,935,000
12,522,000
3,007,000
6,519,000
2,807,000
4,598,000
4,315,500
7,228,500
2,368,000

$9,617,000
3,427,000
6,240,000
8,159,000
10,679,000
2,489,000
9,659,000
5,039,000
4,643,000
3,701,500
9,715,500
3,141,000

101,301,000

76,510,000

76,510,000

$12,970,000
7,935,000
13,052,000
12,617,000

9,601,000

^ .
. .
101,301,000

Total change from Hay 20,
1915, to Apr. 20,1916.2

From Mar. 24,1916, to Apr. 20,1916.1

To Mar. 23,1916.

Decrease.

Decrease.

Increase.

$17,160,000
1,776,000
1,843,000
518,000

614,000
21,911,000

$8,174,000
5,060,000

$164,573,666

3,140,000
2,232,000
45,000

6,451,000

2,487,000
773,000
21,911,000

111;024,000

Increase.

$3,887,000
18,030,000
6,159,000
11,209,000
12,099,000
9,659,000
6,243,000
8,804,000
15,183,000
19,751,000
111,024,000

1 Changes in ownership of gold during period Mar. 24,1916, to Apr. 20,1916, equal 10.27 per cent of obligations settled.
2 Total changes in ownership of gold equal 6.01 per cent of obligations settled.

Summary of transactions, Mar. 24, 1916, to Apr. 20, 1916.

Federal Reserve
Bank of—

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




Balance
last
statement,
Mar. 23,
1916.

Gold.
Withdrawn.

$3,443,000 $1,000,000
10,587,000
6,440,000
10,025,000
50,000
11,952,000
5,177,000 "i*666,666*
6,519,000
2, £47,000
4,598,000
3,878,000
10,036.000
226,666
4,368,000
2,000,000
79,670,000 4,270,000

Settlement of Mar. 30,1916.

Transfers.

Deposited.

Debit.

Credit.
$500,000

$60,000
30,000

$500,000
29,000

29 000
90,000

529,000

529,000

Net •
debits.

Total
debits.

Total
credits.

$4,360,000 $4,542,000
13,389,000 10,131,000
6,863,000 8,069,000
965,000
186,000 1,151,000
6,744,000 5,965,000
779,000
1,516,000 1,391,000
125,000
6,599,000 7,547,000
5,790,000
4,940,000
111,000
118,000
7,000
806,000
723,000
994,000
278,000
564,000
194,000

*$3*258,"666'

4,355,000

46,875,000

46,875,000

Net
credits.

Mar. 30,
1916, balance in
fund after
clearing.

716,000
370,000

$3,125,000
7,329,000
7,646,000
9,789,000
10,733,000
4,111,000
7,467,000
3,497,000
4,591,000
3,961,000
10,503,000
2,738,000

4,355,000

75,490,000

$182,000
1,206,000

948,000
850,000

83,666

MAY 1, 1916.

221

FEDERAL RESERVE BULLETIN.

Summary of transactions, Mar. 24, 1916, to Apr. 20, 1916—Continued.

Federal Reserve
Bank o—
f

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

Federal Reserve
Bank o—
f

Boston . .
New York
Philadelphia
Cleveland.
Richmond
Atlanta
Chicago
St. Louis.
AfjjnriP!ap(VHs

Kansas City
Dallas
San Francisco
Total

Federal Reserve
Bank of—

Balance
last
statement,
Mar. 30,
1916.




Withdrawn.

Deposited.

Debit.

$3,125,000
7 329 000
$10,000,000 11,000,000
7 646 000 $2,500,000
120,000
9 789 000
40,000
10 733 000
5oo 666
4 111 000 1,200,000
300,000
7,467,000
3,497,000
20,000
100,000
4,591,000
3 961,000
50,000
i62,500
756,666
10,503,000
621,000
2,157,500
50,000
2 738,000
75,490,000
Balance
last
statement,
Apr. 6,
1916.

6,160,000

10,920,000

Gold.
Withdrawn.

80,250,000
Balance
last
statement,
Apr. 13,
1916.

75,820,000

$160,000

$500,000

20,666
1,350,000
621,000

2,491,000

Net
debits.

Debit.

160,000

3,168,000

$120,000
""*43O,'666"

Debit.

$200,000

566,666"

260,000

8,235,000

Net
debits.

$2,264,000

810,000

51,726,000

Total
debits.

"YIi3,"666"
34,000

1,040,000
228,000

576,000
58,000
310,000
64,000

3,168,000

51,726,000

8,235,000

4,419,000

Total
credits.

$5,678,000 $6,254,000
15,127,000 12,863,000
6,325,000 7,749,000
1,761,000
648,000
6,837,000 6,803,000
1,523,000 2,403,000
7,393,000 6,817,000
5,370,000 6,211,000
147,000
89,000
1,252,000
942,000
197,000
895,000
74,000
10,000
51,684,000

51,684,000

Net
credits.
$576,000
1,424,000
880,000
841,000
698,000
4,419,000

Settlement of Apr. 20,1916.

Credit.

$521,000

88," 666"

200,000

109,000
10 000

si2o,666

Net
credits.

$4,940,000 $6,393,000 $1,453,000
17,751,000 9,528,000
6,977,000 9,091,000 2,114,000
840,000 1,043,000
203,000
5,635,000 6,736,000 1,101,000
1,431,000 1,571,000
140,000
7,250,000 7,959,000
709,000
5.135,000 5,123,000
12,000
79,000
176,00b
97,000
1,115,000 1,485,000
370,000
468,000 2,080,000
1,612,000
105,000
541,000
436,000

Transfers.

Deposited.

Total
cerdits.

$8,223,000

Credit.

*" iiio 666

1,000,000
1 000 000

Total
debits.

Settlement of Apr. 13,1916.

50,000
228 000
750,000

Gold.

120,000

Credit.

$1,400,000
500,000

4,590,000

Withdrawn.

2,491,000

Settlement of Apr. 6,1916.

Transfers.

Deposited.

$5,078,000 11,000,000
8,106,000
7,380,000 3,000,000
9,972,000
11,334,000
80,000
2,751,000
9,526,000
.. 3,986,000
4 688 000
4,868,500
150,000
9,386,500
360,000
3,174,000

Boston
$6,054,000
New York
6,342,000
Philadelphia
. . 5,804,000
Cleveland.
8,719,000
Richmond
10,380,000
Atlanta. ...'.
. 2,631,000
Chicago
9 990,000
St. Louis
5,055,000
Minneapolis . . . . . .
4,630,000
Kansas City
4,358,500
Dallas . . .
9,496,500
San Francisco
2,360,000
Total

Transfers.

Gold.

10,000

819,000

819,000

Net
debits.

$2,915,000
205,000
360,000
131,000
531,000
276,000
657,000

Total
debits.

Total
credits.

Net
credits.

Apr. 6)
1916, balance in
fund after
clearing.
$5,078,000
8,106,000
7,380,000
9,972,000
11,334,000
2,751,000
9,526,000
3,986,000
4,688,000
4,868,500
9,386,500
3,174,000
80,250,000
Apr. 13,
1916, balance m
fund after
clearing.
$6,054,000
6/342,000
5,804,000
8,719,000
10,380,000
2,631,000
9,990,000
5,055,000
4,630,000
4,358,500
8,496,500
2,360,000
75,820,000
Apr. 20,
1916, balance in
fund after
clearing.

$5,414,000 $8,977,000
15,678,000 12,763,000
9,002,000 8,797,000
1,412,000 1,052,000
7,392,000 7,261,000
1,868,000 2,138,000
7,885,000 7,354,000
5,507,000 5,231,000
127,000
114,000
682,000
1,339,000
644,000
206,000
904,000
113,000

$3,563,000

438,000
791,000

$9,617,000
3,427,000
6,240,000
8,159,000
10,679,000
2,489,000
9,659,000
5,039,000
4,643,000
3,701,500
9,715,500
3,141,000

55,930,000

5,075,000

76,510,000

5,075,000 55,930,000

270,000
13,000

222

MAY 1,1916.

FEDERAL RESERVE BULLETIN.

of transactions Mar. 24 , 1916, to Apr. 20, 1916.

Federal Reserve Agents' Fund—Summary

Week ending Apr. 6,1916.

Week ending Mar. 30,1916.
Mar. 23,
1916,
balance.

Federal Reserve Agent at—

Philadelphia
Richniond.
Atlanta .......
Chicago
. 4 .
St Louis ... .
Minneapolis...- i
Kansas City... ±.
Dallas
San Francisco
Total .. .*....-.

$3,480,000
6,530,000
11,950,000
3,410,000
4,440 000
2,350,000
4,100,000
540 000
10 570 000

. ..
.

. . . .

.»
. -..

. ..

47,370,000

Withdrawn.

Deposited.

Balance.

Withdrawn.

70,000

$120,000

110,000

600,000

1,200,000 48,500,000

280,000

1,600,000

Philadelphia.
Richmond
Atlanta
Chicago

-•••...

.

.

Withdrawn.

. . . . .

$100,000

*

. . . . .

St Louis
Minneai) ol is
Dallas
Sail Francisco
Total..

.

^00,000
70,000

.

370,000

. .

Deposited.

Balance.

S3,360.000
6,430,000
13,950,000
3,410,000
4,390,000
2,350,000
3,900,000
$310,000 1,400000
10 570 000
310,000

$3,360,000
6,530,000
13,950,000
3,410,000
4,390,000
2,350,000
4,100,000
1,160,000
10,570,000

$1,000,000
50,000

Week ending Apr. 13,1916.

Federal Reserve Agent at—

Balance.

$3,480,000
6,530,000
12,950,000
3,410,000
4,440,000
2,350.000
4,100 000
200,000
670,000
10,570,000

$1,000,000

$70,000

Deposited.

49,820,000

Week ending Apr. 20,1916.
Withdrawn.

Deposited.

$120,000
430,000

49,760.000 |

260,000
50,000

$100,000

860,000

100,000

Balance.
$3,240,000
6,000,000
13,950,000
3,410,000
4,130.000
2,350,000
3,900,000
1,450,000
10,570,000
49,000,000

Gross Individual and Bank Deposits,
The subjoined chart illustrates graphically
the fluctuation in individual and bank deposits in the three groups of national banks,
to wit, country, reserve city, and central
reserve city banks, as disclosed by the various
calls of the Comptroller of the Currency,
beginning with June 30, 1914, and ending
with December 31, 1915. The chart also illus-

trates the small ratio which bank deposits bear
to individual deposits in country banks, and
the increasing ratio of bank deposits to individual deposits in reserve city banks, and, finally,
the very high ratio in the case of central
reserve .city banks where the amount of bank
deposits almost equals the individual deposits. The figures are also given herewith.

Gross individual and bank deposits of national hanhs.
Held by country banks.

Held by reserve city banks.

Held by central reserve city
banks.

Pate of Comptroller's call.
Individual
deposits.
1914.
June 30...
Sept. 12
Oct. 31
Dec. 31
Mar.4
May 1..
June 23
Sept.2
Nov. 10.
Dec. 31




1915.

$3,666,828,850
3,609,368.840
3:577,813,620
3,586,723,612
3,644,546,338
3,644,397,137
3,653,961,172
3,725.438,771
3,913'481,802
3 988 7S6J353

Bank
deposits.

Individual
deposits.

Bank
deposits.

Individual
deposits.

Bank
deposits..

$250,731,058 $1,557,876,365
241,713,201 1,547,161,962
228,286,090 1,520,882,734
236,026,436 1,586,527,270

$888,079,318
811,087,853
797,149,933
755,368.045

$1,153,143,079
1,081,139,571
1,085,517,142
1,193,445,839

$1,047,092,253
897,097,572
866,293,005
878,377,169

1,578,966,280
1,656,857,872
1,693,932,700
1,710,632,538
1,876,114,617
1,896,708,187

847,503,986
S43,440,977
815,263,079
869,980,357
972,338,868
987,557,975

1,126,710,428
1,364,258,529
1,265,341,766
1,327,389,310
1,658,202,888
1,778,449,538

1,136,863,718
1,144,814,983
1,167,385,754
1,360,250,526
1,467,833,679
1,466,397,020

259,377,030
238,278,237
225,357,283
235;824,787
269,500,836
284,476,679

MAY

l, 1916.




FEDERAL RESERVE BULLETIN".
Gross individual and bank deposits of national hanks.

223

224

FEDEKAL RESERVE BULLETIN.

MAY 1,1916.

INFORMAL RULINGS OF THE BOARD.
Below are reproduced letters sent out from
time to time over the signatures of the officers
of the Federal Reserve Board which contain
information believed to be of general interest
to Federal Reserve Banks and member banks
of the system:
Clayton Act and State Banks.

You are advised that section 8 of the Clayton Act prohibits a person who is a director
of a' State bank with resources aggregating
more than $5,000,000 from serviiig at the
same time as a director of any national bank,
regardless of the size or location of that national bank. That section, however, does not
prohibit a person who is a director of a State
bank with resources aggregating more than
$5,000,000 from serving at the same time as
an officer or employee of any national bank,
unless both institutions are located in the same
city of more than 200,000 inhabitants or unless the State bank in question is a member of
the Federal Reserve System.
You are advised, therefore, that under the
facts as presented in your letter there is no
prohibition against a director in the trust company you name from serving at the same time
as an officer or employee of the consolidated
bank referred to.
MARCH 4,

1916.

Foreign Bank Branches In United States.

In reply to your letter of March 30, 1916,
you are advised that there is no provision in the
laws of the United States relating to the right
of a foreign bank to establish branches in this
country. A proper determination of that
question, therefore, depends upon the laws
of the various States in which it is intended
to operate such branches.
A foreign bank, like a corporation of any
other State of the Union, which intends to
establish a branch in any particular State
of the United States, would nave to conform
to the laws of that State, not only as to the
conditions of its admission, but also as to the
manner and extent of its operations after
receiving permission to commence business.
AJPBIL 4,




1916.

Bonds Securing Circulating Notes.

Under the provisions of the National Bank
Act any national bank desiring to withdraw its
circulating notes in whole or in part may, upon
the deposit of lawful money with the Treasurer,
take up the bonds deposited with the Treasurer
for the security of such notes, provided, however, that the amount of bonds on deposit shall
not be reduced below $50,000 in the case of a
bank having a capital of more than $150,000,
nor below one-fourth the amount of the capital
in the case of a bank whose capital is $150,000
or less.
Section 18 of the Federal Reserve Act provides in part that—"Any member bank desiring to retire the
whole or any part of its circulating notes may
file with the Treasurer of the United States an
application to sell for its account, at par and
accrued interest, United States bonds securing
circulation to be retired.7'
One of the purposes of this section, as its
title indicates, was to provide for the refunding
of bonds deposited by national banks to secure
circulation. It will he observed that, while a
limit is placed on the amount which the Federal Reserve Banks may purchase in any one
year, no limitation or restriction was incorporated in this section on the amount that any
national bank may sell.
You are accordingly advised that under the
interpretation of this section, which has been
adopted by the Treasury Department, national
banks are not required to maintain a minimum
amount of bonds on deposit with the Treasurer,
provided such bonds are sold through the
Treasurer under the provisions of section 18.
APRIL 8,

1916.

Rediscounts of Member Banks.

In answer to your letter of April 8, I would
state that our counsel advises us as follows:
(1) Section 5202 of the Revised Statutes of
the United States, providing that no national
banking association shall be indebted or liable
to an amount exceeding the amount of its
capital stock actually paid in and remaining
undiminished by losses or otherwise, was
amended by the Federal Reserve Act, by inserting another exception, namely, liabilities
incurred under the Federal Reserve Act You

li 1916.

would not, therefore, under section 5202, as
amended, have to take into account, in determining the total amount of your liability,
paper rediscounted with the Federal Reserve
Bank.
(2) There is no limitation in the law as to
the total amount of rediscounts which a
member bank may take from the Federal Reserve Bank. There is, however, a provision in
section 13 of the Federal Reserve Act providing that the aggregate of notes bearing the
signature or indorsement of any one person,
corporation, etc., rediscounted by the Federal Reserve Bank for any one bank shall at
no time exceed 10 per cent of the unimpaired
capital and surplus of said bank. This clause
of the Act contains an exception as to the
discount of bills of exchange, but no exception
is made as to the discount of promissory notes.
If, therefore, any particular paper which
you present for rediscount to the Federal
Reserve Bank, either singly or added to the
paper of the same makers or indorsers which
•tji.e Federal Reserve Bank has already rediscounted for you, amounts to a total of more
than 10 per cent of the unimpaired capital and
surplus of your bank, the Federal Reserve
Bank, under the clause above quoted, has no
authority to rediscount.
APRIL 17,

225

FEDERAL EESEH^E BULLETIN.

1916.

DISTRICT NO. 8.

Trustee, execiitpr, administrator, and registrar of stocks
and bonds:
First National Bank, Mount Vernon, Ind.
Central State National Bank, Memphis, Tenn,
DISTRICT NO. 11.

Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Beaumont, Tex.
Trustee:
First National Bank, Troup, Tex.

Intradistrict Clearing System,
Additions to and withdrawals from the intra- •
district clearing system since the publication
of lists in previous issues of the Bulletin are as
follows:
DISTRICT NO. 1.

Withdrawals:
First Bridgeport National Bank, Bridgeport, Conn.
Danbury National Bank, Danbury, Conn.
Greenwich National Bank, Greenwich, Conn.
DISTRICT NO. 2.

Additions:
Connecticut National Bank, Bridgeport, Conn,
Danbury National Bank, Danbury, Conn.
Greenwich National Bank, Greenwich, Conn,
National City Bank, Troy, N. Y.
DISTRICT NO. 3.

Fiduciary Powers.

Withdrawal:
Firat National Bank, Altoona, Pa.

Applications from the following banks for
DISTRICT No. 4.
permission to act under section 11 (k) of the Withdrawal:
Farmers National Bank, Arcanum, Ohio.
Federal Reserve Act have been approved by
the Board since the issue of the April Bulletin,
DISTRICT NO. 5,
Withdrawals:
as follows:
DISTRICT No. 1.

Registrar of stocks and bonds:
Ansonia National Bank, Ansonia, Conn.
DISTRICT NO. 3.

Trustee, executor, administrator, and registrar of stocks
and bonds:
Union National Bank, Atlantic City, N. J.
DISTRICT NO. 4.

Trustee:
Citizens National Bank, Sidney, Ohio.
DISTRICT NO. 7.

Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Clarence, Iowa.
Farmers National Bank, Sheridan, Ind.
38288—16—4




First National Bank, Oxford, N. 0.
First National Bank, Wilson, N. C.
Peoples National Bank, Charleston, S. C.
Edisto National Bank, Orangeburg, S. C.
National Union Bank, Kock Hill, S. C.
DISTRICT No. 6.

Addition:
Farmers National Bank, Shelbyville, Tenn.
DISTRICT No. 8.

Withdrawals:
First National Bank, Siloam Springs, Ark.
Lynnville National Bank, Lynville, Ind.
Farmers National Bank, Mayfield, Ky,
DISTRICT NO. 11.

Withdrawals:
Calcasieu National Bank, Lake Charles, La.
First National Bank, Alpine, Tex.
First National Bank, Clyde, Tex.

226

FEDERAL KESEEVE BULEETIH.

Mm 1,

LAW DEPARTMENT.
The following opinions of counsel have been also that the various stipulations contained
authorized for publication by the Board since therein do not affect its negotiability. If drawn
on the purchaser of goods by the seller of such
the last edition of the Bulletin:
goods, as certified in the margin of the bill, it
Negotiability of Bills of Exchange.
would when accepted become a trade acceptNegotiability of & bill of exchange Is not affected by pro- ance within the definition fixed by the Federal
'
visions which waive demand, notice, and protest; wMch Reserve Board in Regulation P, series of 1915,
waive homestead exemption rights; and which provide for
and would be eligible for rediscount by the
the costs of collection and attorney's fees.
Federal Reserve Bank of Atlanta at the rate
APRIL 13, 1916.
established for trade acceptances.
SIR: The attached form of acceptance has
Respectfully,
been referred to this office for an opinion as to
M. C. ELLIOTT, Counsel.
whether it is in form a negotiable draft or bill
To Hon. C. S. HAMLIN,
of exchange.
Governor Federal Reserve Board.
The instrument in question is undoubtedly in
the form of a bill of exchange and not a note.
Maturity of Farm Land Loans.
It is an unconditional order addressed by one
A national bank may discount or purchase a note secured
person to another requiring the person to
by improved and unencumbered farm land, even though
whom it is addressed to pay on demand or at a such note is payable more than five years after its date,
fixed or determinable future time a sum certain provided it will mature within five years from the date on
in money to order. (See sec. 126, Negotiable which is is acquired by such national bank.
Instruments Law.)
A P R I L 8,
1916.
The only question to be determined, thereSIR: The following question has been refore, is whether certain stipulations contained ferred to this office for an opinion:
in the bill relating to the payment of fees,
Can a national bank, under section 24 of the
waiver of protest^ etc., render it nonnegotiable. Act, discount or purchase a note secured by
Section 5, subsection 3, of the Negotiable improved and unencumbered farm land, which
is payable more than five years after the date
Instruments Law provides that:
"Negotiability is iiot affected by a provision such note was made but whichofwill mature
acquisition
which waives the benefit of any law intended within five years from the date
by a national bank ?
for the advantage or protection of the obligor."
Section 24 of the Federal Reserve Act proIt is certain, therefore, that the waiver of
vides in part:
homestead and exemption rights does not
Any national banking association not situdestroy the negotiability of the bill.
ated in a central reserve city may make loans
So, also, a provision to pay the costs of col- secured by improved and unencumbered farm
lection and attorney's fees does not invalidate knd, situated within its Federal Reserve disthe instrument. (See Negotiable Instruments trict, but no such loan shall be made for
Law, sec. 2, subsec. 5; First National Bank of a longer time than five years.
Shawana v. Miller, 139 Wise, 126.) The fact
In an opinion of this office published on page
that the drawer and indorsers waive demand, 120 of the March, 1916, issue of the Federal
notice, and protest does not in any way affect Reserve Bulletin, the conclusion was reached
negotiability. (See Norton on Bills and Notes, that the power to "make loans" included the
4th ed., chap. 9, sec. 148 (b).)
power to purchase or discount loans already
It seems, therefore, not only that the attached made as well as to make such loans in the
instrument is in form a bill of exchange but first instance.




1, 1916.

FEDERAL RESERVE BULLETIN".

Prior to the passage of the Federal Reserve
Act national banks were not permitted to
accept real estate as security for loans except
where this became necessary to prevent losses
on debts previously contracted. It is generally
understood that this class of loan was not
authorized because of its nonliquid character.
The purpose of section 24 seems clearly to
have been to authorize a national bank to invest a limited amount of its resources in farm
loans, provided it invests no part of its funds in
any one loan for a longer period than five years.
In this view the date of the note is immaterial, in the opinion of this office, if the obligation matures within five years from the date
that the national bank makes the loan.
Respectfully,
M. 0. ELLIOTT, Counsel.
To Hon. JOHN SKELTON WILLIAMS,

Comptroller of the Currency.

Bills of Exchange Under Section 5200, Revised Statutes.
An obligation in the form of a bill of exchange which exempts the drawer from liability is not a bill of exchange
coming within the exception to the limitations of section
5200 of the Revised Statutes.
MARCH 22,

1916.

SIR: The attached letter in substance raises
the question whether a draft or Mil on which the
drawer is exempted from liability by a statement to the effect that it "is taken without liability on part of drawer" is a bill of exchange,
coming within the exception to the limitations
of section 5200 of the Revised Statutes.
An obligation which is in the form of a bill of
exchange, but which, in fact, does not hold anyone but the acceptor liable, is, in substance, a
promissory note, and not a bill of exchange.
It is, therefore, not entitled to the exemption
afforded under the provisions of section 5200,
because it is not a a bill of exchange drawn in
good faith against actually existing values."
Respectfully,
M. C. ELLIOTT, Counsel.
To Hon. C. S. HAMLIN,

Governor Federal Reserve Board.

Rediscount of the Assignment of Open Accounts.
The assignment of an open account is not negotiable
paper and is not eligible for rediscount.by a Federal Re-




227

serve Bank under the terms of section 13 of the Federal Reserve Act.
APBIL 17, 1916.

SIR: The attached, letter raises the question
whether a valid assignment of an open book
account is rediscountable by a Federal Reserve
Bank.
It appears that certain national banks located
in Pennsylvania desiring to accommodate some
of their customers, who are coal operators,
have purchased written assignments of the open
accounts due to such customers from various
railroads. The question submitted is whether
such assignments can be discounted by the
Federal Reserve Bank of Cleveland.
Section 13 of the Federal Reserve Act authorizes any Federal Reserve Bank to discount for
its member banks "notes, drafts, and bills of exchange arising out of actual commercial transactions.77 The obligation in question is not a
note, draft, or bill of exchange, and therefore
does not come within the express terms of that
section.
This omission was evidently not an oversight
on the part of Congress. An assignment in the
form under consideration is not negotiable paper and has none of the elements of negotiable
paper. It does nothing more than grant to the
assignee the rights which the coal operator has
against the purchaser; that is, rights which are
subject to ail the equities and offsets which the
purchaser or obligor may have against such coal
operators. Furthermore, the assignee bank
may be disbarred as against the original debtor
by a bona fide payment by such debtor to the
coal operator without any notice whatever to
! the bank.
These facts in themselves would seem to be
sufficient to indicate that the paper in question
not only is not expressly authorized by the
Act, but also does not come within the intent
or spirit of the Act. It is not bankable paper,
and should not, therefore, be considered as a
proper discount for a Federal Reserve Bank.
Respectfully,
M. C. ELLIOTT, Counsel.
To Hon. C. S. HAMLIK,

Governor Federal Reserve Board.

228

FEDERAL RESERVE BULLETIN.

GENERAL BUSINESS CONDITIONS.
General business and banking conditions are
described in reports made by Federal Reserve
Agents for the 12 Federal Reserve Districts,
as of approximately April 24, substantially
as follows:
DISTRICT NO. 1—BOSTON.

Business continues to improve, and a comparison of conditions to-day with those prevailing a year ago shows that the improvement
in many cases has been extreme, although from
month to month it is not so noticeable.
Reports from various lines of trade do not
indicate that any slowing up of the demand is
in sight and in practically every business the
present prosperity is expected to last for a
good while to come, barring some unforeseen
deterrent happening. In some lines the increasing cost of raw materials and the unsettled
labor conditions are causing considerable uneasiness, but conditions, for the most part,
are favorable, and manufacturers and merchants generally are making money.
The freight situation on the New England
railroads has greatly improved and unless the
lines again become overtaxed this should not
cause much further inconvenience.
There is no change in the money market.
Although the excess reserves of the Boston
Clearing House banks show a very substantial
decrease from the high point of last fall, rates
remain low and money comparatively easy.
Call money is 3 per cent; commercial paper, 3
to 3J per cent for short dates; 3 per cent upward for six months; 4 to 4J per cent for a
year; town notes, fall maturities, 2f to 3 per
cent; bankers7 acceptances, 90 days, 2 per
cent upward.
Loans and discounts of the Boston Clearing
House banks show an increase of $1,684,000
over a month ago, while demand deposits show
a decrease of $2,343,000 in the same time.
The amount "Due to other banks" on April
15, 1916, was $144,477,000, an increase of
$6,639,000 over last month. The excess reserve of these banks has decreased from




MAY

1, 1916.

$57,825,000 on March 18, 1916, to $56,950,000 on April 15, 1916.
Exchanges of the Boston Clearing House
for the week ending April 15, 1916, were
$219,284,696 as compared with $177,808,372
for the corresponding week last year and $219,789,796 for the week ending March 18, 1916.
Building and engineering operations in New
England from January 1 to April 12, 1916,
amounted to $47,982,000, being a high record
for many years. The nearest approach to
these figures was in 1912 when operations for
the similar period amounted to $45,860,000.
Exports from the port of Boston for March,
1916, amounted to $11,506,025, a decrease of
$290,669 as compared with February, 1916,
and a decrease of $1,193,553 from March, 1915.
Imports for March, 1916, showed a very
decided decrease from February, 1916, only
totaling $21,451,229 in March, as compared
with $28,581,611 in February. Imports for
March, 1915, were $18,794,312.
Receipts of the Boston Post Office for March,
1916, show an increase of $31,662, or about A\
per cent, over March, 1915. Receipts for the
first 15 days of April, 1916, show an increase of
$48,869, or about 14 per cent over the same
period last year.
The Boston & Maine Railroad reports net
operating income, after taxes, for February,
1916, as $884,693, as compared with $491,868
the corresponding month of 1915. The New
York, New Haven & Hartford Railroad reports
net operating income, after taxes, for February, 1916, as $1,198,373, as compared with
$1,289,683 the same month last year.
Manufacturers of boots and shoes report
exceptionally good business at advancing
prices, with fall orders coming in well. The
high and increasing cost of leather is forcing
manufacturers to advance their prices, and
many retailers anticipating still higher prices
are placing their fall orders early.
Cotton mills are sold far enough ahead to
insure running at capacity for many months
to come. In many fabrics this is a betweenseasons period, and buyers, therefore, are not in

MAY

1, 1916.

FEDERAL RESERVE BULLETIN.

the market to so large an extent as last month.
Mills, however, are so amply provided with
orders that the fluctuations in the volume of
buying from week to week receive little attention. Lack of certain classes of skilled labor
and unrest among employees is receiving more
consideration than additional orders.
Conditions in the woolen and worsted industry remain about the same. There is a good
volume of buying and prices are firm. Mills
have all the business they can take care of and
are running as full as possible, in most cases
being sold ahead well into the fall.
The market for securities remains quiet, without any particular features, due to a large extent to the unsettled international situation.
DISTRICT NO. 2—NEW YORK.

A late spring is delaying the opening of navigation on the Great Lakes and heavy snowfalls
have held up plowing and farm work.
Shipping interests on the Lakes foresee an
unusually heavy movement of ore, coal, grain,
and general freight, and are prepared for a busy
season.
It is proposed to establish at New York regular auctions of vessels similar to those held at
English and continental ports. The first ship
auction sales were made here on April 10.
The volume of goods produced and sold last
month was probably greater than in any March
on record. The business activity and the prevailing high prices are being reflected in earnings and cash balances shown in published
statements of corporations.
Country merchants are reported to be buying
more goods than at any time since 1907. In
view of the extraordinary conditions and prices
not a few are inclined to question the wisdom
of heavy commitments in these times.
Certain concerns in various lines of business
have been questioned on conditions and have
reported directly as follows:
Steel.—Practically sold up with orders for
six months ahead. Deliveries are difficult
owing to transportation conditions. Unfilled
orders of the United States Steel Corporation




229

on March 31 were 9,331,001 tons, against
4,225,749 tons a year ago.
Leather.—Not many military orders now, but
a heavy domestic demand. Prices are high
and will probably continue so for some time.
Collections are good.
Boots and sTioes.—Prices advancing and business brisk.
Prints and colored goods.—In strong demand
and prices advancing.
Lumber.—Trade improving; prices increasing.
Building and materials.—Business less active; larger jobs about completed and new
work does not offer sufficient margin of profit.
Department stores.—Larger sales of better
grade wearing apparel. More money seen in
circulation.
Jewelry.—Sales of diamonds five times larger
than for several months past; pearls in good
demand. Large silver pieces called for notwithstanding advance in price of the metal.
Platinum lines paralyzed by the high price of
the metal. The clock industry worked to
capacity.
Strikes have occurred among jewelry workers
and railroad construction employees. Silk
weavers in Paterson, N. J., demanded and were
granted a 9-hour instead of a 10-hour working day.
New York Clearing House members on April
15, 1916, reported loans, etc., $3,378,106,000;
deposits, $3,551,993,000; and excess reserves,
$102,744,000. Since March 4, 1916, loans,
etc., increased $15,927,000, deposits decreased
$23,235,000. and
excess reserves decreased $34,776,000. Excess reserves were
$224,122,990 on September 11 last.
New York City offered on April 19,
$40,000,000 41 per cent corporate stock payable April 1, 1966, and $15,000,000 bearing
the same rate of interest but maturing serially
from April 1, 1917, to April 1,1931. The average price realized on the 50-year stock was
102.618 and for the 15-year issues 101.432.
The Canadian Government loan of
$75,000,000, maturing in 5, 10, and 15 years,

280

3EDEBAL BESEBVE BIIIXETIH.

yielding 5.37J to 5£- per cent, was oversubscribed in New York and allotted on 'March. 24.
Silver bullion quoted at 64$ cents represents
an advance of 18•§• cents from the low price of
1915. The average price last year was 49.69
cents, and in 1914, 54.81 cents.
Sterling exchange has been steady at 4.76 to
4.76$. Paris checks gradually reacted froin
5.87J, and on April 14 dropped to 6.08$, but
recovered 12 points within the next few days.
German sight bills declined to 71J on March
21, but have since strengthened to 74$. Holland exchange continued at a premium of 5 to
6 per cent. Italian bills since March 1 have
advanced from 6.71| to 6.48.
The high rate for call money in March was
2$ per cent, the low rate If per cent, and renewals 2 per cent. Time loans on collateral
were slightly firmer, with a range from 2$ to 4
per cent. No changes occurred in rates for
bankers' acceptances, viz, 2 to 2f per cent.
Commercial paper rates were stronger at 3 to
3$ per cent. During the latter part of the
month sales at rates below 3 per cent prac~.
tically ceased.
DISTRICT NO. 3—PHILADELPHIA.

The outstanding feature of the business situation in this district is the rise in prices which
continues in most lines. Trade is brisk, and
energy is concentrated more on methods of
production and questions of delivery than
on discussions of prices. Manufacturing plants
are working to capacity, and many have sufficient orders on hand to keep busy for considerable periods. The emergency orders are
bringing profit to the small shops, as the overflow work has been parceled out to a large
number of them. Farmers particularly are
feeling the scarcity of labor.
Some of the railroad shops have been operating on short time because of inability to obtain
raw materials. There is a good demand for
equipment. The loaded freight car movement
of the largest railroad in the district shows an
increase of 33 per cent during the first 14 days
of April over the same month of 1915.




MAY 1,1916.

According to the report of the Commissioners of Navigation, exports at this port during
the month of March showed an approximate
value of $21,000,000, an. increase of about
$14,000,000 over March, 1915. The value of
the imports was about $9,600,000, compared
with $7,600,000 for the corresponding month
of last year. The importation of wool and cane
sugar has increased greatly. Sugar worth
$3,907,584 was imported in March, which represents a gain of $912,052 over the same period
of 1915. Wool increased during the same
period $838,440 to $1,168,138.
During the first three months of 1916, merchandise valued at about $46,000,000 was
shipped abroad from Philadelphia, being an
increase of $22,000,000 over the first quarter
of 1915. A falling off is noted in the coastwise
trade. Heavy shipments of war supplies, flour,
and refined sugar were made.
Building operations,—In the smaller cities
and towns, new building has not been very extensive, but in the larger cities, the reverse is
generally the case, and a good deal of work is
contemplated, especially in the erection of
homes and houses.
Carpets, rugs, etc.—Carpet wool has gone up
100 per cent since last year, and local concerns
have sharply advanced their prices of stock
goods. The plush business is thriving.
Cement,—During the summer and latter
months of 1915 the condition of the cement industry was very satisfactory. Indications are
more favorable this spring than last year. Consumers buy very little during the winter-months,
but the past winter has been better than for many
years. Car shortage has interfered with shipments, but has lately improved. Contracts for
1916 delivery are very good and at better prices
than last year. The mills are running at about
80 per cent capacity, due not to lack of orders,
but to scarcity of labor. The price of labor is
going up steadily, and if it does not advance
above the point anticipated the outlook will be
very good for profitable business. Unfavorable
weather conditions have greatly hampered
\ work during the past six weeks,

211

FEDERAL RESEBVB BULJLETXH.

Chemicals.—Because of the dyestuff scarcity
Leather and shoes.—There is a strong demand
manufacturers have been compelled to with- for shoes; jobbers and wholesalers find diffidraw some lines. Experiments to manufacture culty in keeping up stocks, and prices incline
colors coijttinue with some success. The de- upward. There is a great scarcity of tanning
mand for paints, oils, and varnishes in general materials and dyes. Glazed kid is very active,
far exceeds the production, and plants are and the demand is close to the supply. Shipworking to capacity trying to keep up with ping conditions retard the importation of skins.
orders. Ingredients of paints have advanced
Lumber and building materials.—Lumber
tremendously. Glass has been in good demand dealers report conditions better than for a numwith high prices. Drugs continue high.
ber of years. Orders are large and prices are $5
Goal.—-The shortage of cars continues to be and $6 per thousand feet higher than a year ago.
an obstacle in the way of transportation. The Building materials are advancing in price.
business,.however, is normal.
Paper.—Sometime ago many manufacturers
Cotton and cotton goods.—Conditions in the withdrew all quotations and have since been
cotton yarn market continue to show an active making their prices from day to day only,
demand, with hardening of prices. Most niills owing to difficulty and uncertainty in securing
making cotton goods are well sold up, and or- chemicals, dyes, and other items heretofore obders taken are naturally for future delivery.
tained abroad, and the tremendous price inDry goods, notions, millinery.—Wholesalers creases resulting therefrom. Paper mills have
and jobbers report a very satisfactory season, business enough on their books to keep them
with an increase of business over the previous going for several months, and from special reyear. Sales of millinery are well up to expecta- ports, we learn that the demand for paper is the
tions, and the outlook for the future is con- biggest ever known. The selling price seems
sidered extremely encouraging.
to be no longer based upon the cost of producHardware and electrical supplies.—-Manufac- tion, and is influenced almost entirely by the
turers and jobbers report increased sales. The demand. In a way, paper is a barometer of
hardware trade generally has felt the effects of general conditions, for the amount of paper
the prosperity wave for some months, and re- used is governed to a large extent by the amount
ports show no decrease in the world demand for of advertising in newspapers and magazines,
hardware, and especially for mill supplies, and by the number of packages sent out by the
The situation in electrical supplies is decidedly stores. The lack of sufficient raw materials is
favorable, notably in those Hues used in connec- rapidly becoming a serious factor, and for this
tion with building.
reason the outlook is only a guess. Collections
Iron and steel.—The domestic steel consump- are very good, as customers are anxious to.take
tion is a very important factor in the present advantage of discounts.
highly satisfactory condition of this industry.
Silk.—The silk industry is working to the
Not only railroads, but other consumers have limit of capacity. Fall business is being taken
come into the market and placed orders for at high prices. Western interests are reported
large tonnages of steel. The placing of large to be placing large orders on the assumption
orders for rails to be delivered in 1917 is a nota- that prices may go higher .rather than lower.
ble feature of the market. Orders for cars and Many mills have made additions to their plants.
locomotives during the first quarter aggregate
Textiles.—Conditions in hosiery and under766 and 540 per cent more than for the first wear show little change. There has been some
quarter of 1915. There is a more conservative falling off in retail buying. Mills have caught
spirit shown in prices for steel products, and it up somewhat on deliveries, and am generally
is believed that the end has come to headlong sold up to the limit. There are predictions of
advances. Pig iron is very strong and a tiigher a slump, due to abnormal purchasing of goods.
market is expected,
Labor is restless, but tiie situation is not acute.




«/

XT

O

»/

282

FEDERAL BESBBVE BULLETIN.

purchases by the warring
nations have increased tobacco prices, and continued buying tends toward further increases.
Growers report that on account of unfavorable
weather conditions very few seed beds have
been made, and there will be little planting
done before early June, which is late.
Wearing, apparel.—The demand for all classes
of wearing apparel is well maintained, and except for the difficulty in obtaining some krpds
of fabrics, the outlook is very bright, especially
as the probability of serious labor troubles is
becoming more remote. Competent help is
hard to secure.
Wool and woolen goods.—There has been a
lull in the buying of wool and woolen goods.
Manufacturers are expected to become more
liberal buyers as soon as present supplies are
absorbed.
The money market continues easy and featureless. Rates are quoted at 3 to 3-J per cent
for call money, 3 to 4 per cent for time loans,
and 3 to 3J per cent for choice commercial paper. Clearings continue to run high throughout the entire district.
Our member banks report that the latter
part of 1915 was profitable to most of their
customers, and they are now doing very well.
The smaller concerns, however, apparently did
not meet with the phenomenal gains generally
reported.
'
DISTRICT.;NO. 4~~CLEVELAND,

* There has been no substantial slowing down
in the business prosperity of district No. 4.
The earnings of steel companies and concerns
in kindred lines are continuing at an unprecedented rate. Official figures and unofficial
estimates from leading corporations in this
district, if continued during the balance of the
year, will assure profits which certainly will
stand as the apex of industrial earnings for
some years to come. A straw showing the
enormous volume of domestic business now
being booked is the order of the Pennsylvania
Railroad Co. for the largest quantity of rails
ever placed at one time. The announced advance rate of $5 a ton in the price of steel rails




MAT!,

1916.

is effective the beginning of May, and is the first
change in 15 years.
If there is a new feature in the iron and steel
situation, it is the growing feeling among some
of the largest concerns that output and shipments of finished products have probably
reached the maximum on this movement.
This feeling grows out of the fact that there is
a shortage of raw and semifinished materials.
For instance, some nut and bolt factories are
now operating only about 70 per cent because
of inability to obtain bars from which bolts
and nuts are made. An inadequate supply of
sheets and plates reduces the output of shops
and factories using semifinished products.
Two other factors enter into the feeling that
output has reached its peak. The first is a
continued shortage of shipping facilities, and
the second is the shortage of labor. Newspapers are carrying columns of advertising
which offer positions at good wages for skilled
and unskilled mechanics. Railroads claim
that they have experienced no shortage of
men for train service, but are short of shopmen
and particularly of common labor.
Strenuous efforts are being made to open the
navigation season on the lakes. It has already
definitely begun on the lower half of the lakes.
Vesselmen believe the Soo will not be navigable
before April 25, so navigation, will not have
been in full swing until that date. The estimated volume of ore shipments for this season
is between 53,000,000 and *55,000,000 tons,
which is several million tons in excess of the
largest year.
The production of coal continues large,
although prices have not been quite so firm
owing to consumers now using stocks accumulated in anticipation of a miners7 strike which,
up to April 22, was thought to have been
averted.
Plate and window glass has now reached a new
maximum output. The increased output finds
a ready market at the highest price ever quoted.
The oil industry is active. Demands for
drilling are beyond the supply of oil well materials. Many producers who have been holding
their oil are taking advantage of the present

MAI 1, 1916.

price and are selling, which has resulted in the
accumulation of a large surplus of loanable
funds in banks located in petroleum-producing
districts. Reports from the garment industryshow an unexcelled season. Conditions in the
mercantile trade are satisfactory.
Post-office receipts in the six largest cities of
the district for the month of March, 1916,
show an increase of 11.1 per cent, the totals
for the month being $1,273,237, as against
$1,146,178.87 for the same month last year.
Collections in ail lines are reported good,
complaints being fewer this month. Payments, however, are not being made in many
cases at to-day's prices, as many concerns are
still working on material sold at prices lower
than those now prevailing. As these contracts
expire and the new rates obtain the less will be
^he purchasing power of the dollar, which will
be immediately reflected in credit. Therefore
the effect of the higher level of' values upon collection and credit-can not be determined yet.
There were in March, 1916,; 126 failures in
this district, with liabilities of $856,829, against
97 failures for the same month last year,•with
liabilities of $1,272,900.
There is a pressing demand in industrial districts for more and better housing facilities.
The movement to supply this demand is in
evidence but is being retarded by the high cost
of building material as well as of labor. In
the six largest cities of the district there were
fewer building permits issued in March, 1916,
than during the same month in 1915. Since
May, 1915, this is the first report that did not
show an increase in the number of permits
issued over the same month of the previous
year. The figures are given below:
Number of permits issued. ,
March, March,
1915.
1916.

Valuation.
March,
1916.

March,
1915.

Per
cent
Increase of inor
crease
decrease. or decrease.

Cincinnati
Cleveland..-..
Columbus.
Pittsburgh....
Toledo
....
Youngstown..

1,466
1,123
340
332
340
100

1,652
1,483
335
438
288
90

$984,500 $1,356,124 i 371,624
1,838,465 4,022,035 i 2,183,570
349,735
868,935 519,200
760,615
1,767,612 1.006,997
259,237
1,022,495 763,258
2,723
176,313 173,590

127.4
154.3
67.3
75.5
33.9
1.5

Total....

3,701

4,286 6,658,320 7,841,204 i 1,182,884

U5.1




238

FEDERAL RESERVE BULLETIN,

1

Decrease.

Kecord figures are being made in clearings.
Money rates remain unchanged, and banks are
plentifully supplied with loanable funds. Clearing figures in the same cities for the first 15
days in April are as follows:
Apr. 1-15,
1918.

Apr. 1-15,
1915.

Increase.

Percentage of
increase.

Cincinnati
Cleveland
Columbus........
Pittsburgh
Toledo
Youngstown.

$73,099,600.00 $58, 785,400.00 $14, 314,200.00
:,
i,
94,889,457.40 68,209,928.04 26,679,529.36
23,183,800.00 14,912,200.00 8,271,600.00
.13,489,693.82 29,176,266.29
142,665,960.11113.
19,840,915.83 13,713,337.00 6,127.578.83
9,712,252.69 3,359,294.49 6,352,958.20

24.3
39.1
55.5
25.7
44.7
189.1

Total

363,391,986.03 272,469,853.35 90,922,132.68

33.4

The ^wheat crop in the district looks good.
A great deal of tobacco probably will be put in.
The price of this commodity is advancing
rapidly.
DISTRICT NO. 5—RICHMOND.

Business continues to show improvement,
jobbers reporting a fair volume of sales and
good collections. Agricultural conditions on
the whole are favorable. In some trucking
sections along the coast, they are below normal,
due to low prices of potatoes, but prospects
are considered brighter for the coming crops.
Farmers have done well during the past season
and are in better financial condition than for
some time past.
Bad weather delayed crop preparations for
a time, but on the whole lands are in good
condition for the next crops. There has been
more diversification than before. Food supplies have been more varied and abundant
than heretofore, more attention being given to
the care of live stock. The present cotton
crop was Economically raised. Prices have
been good and this has contributed materially
to improved conditions and the prosperity of
the agricultural sections. The tobacco crop
was also raised without unusual costs, but there
has been some complaint as to price.
Owing to the scarcity and high prices of fertilizing materials, a reduction in volume is expected in the fertilizer trade. Manufacturers
are doing well, and on the whole anticipate a
satisfactory season.

284

tEDEEAL BESERVE BULLETIN.

Conditions in the cotton-spinning industry,
wMch have been seriously depressed for several
years, show a marked improvement. Many of
the mills which have failed to earn enough to
take care of even the wear and tear on their
plants are now finding a ready market for their
goods at satisfactory prices. This increased
demand has developed both in Europe and
South American trade, but is hampered by the
scarcity of freight room.
Men in the timber and coal business in the
interior report satisfactory conditions and
earnings. West Virginia reports the location
of a new and extensive steel plant and a new
glass plant.
The lumber trade has continued to improve
from its recent depression. Jobbers' stocks are
limited, and the mills are now moving a fair
portion of their accumulated stocks at improved
prices. This has been interfered with to some
extent by congestion in the railroad traffic, particularly in New England and at the seaports.
One point in the district reports 15,000 bales
of cotton held in the county, which if sold
would furnish more money than could be profitably used.
Investors, even in the smaller cities, are reported to be looking for safe short-time investments, but not venturing far as to the future.
Banks in large cities are offering money at low
rates, resulting in decreased demands on the
local banks. This has created an abundant
supply of funds, resulting in decreased earnings
for the local banks.
DISTRICT NO. 6—ATLANTA.

General conditions in the Sixth District since
our April report are unchanged to any great
extent and the outlook for the future continues
to be favorable.
Sugar, rice, and lumber are in active demand.
There is a gradual selling of the cotton crop,
which influences all lines of business endeavor.
Manufacturers are working full time and many
are behind on orders. The transportation
problem continues a handicap, though deliveries are now effected somewhat more promptly,




MAT 1.1916,

The late frost did some damage to the early
fruit crops of the South, but with the favorable
weather of the past few weeks, all farm work is
well advanced. A good deal of planting has
b&en done in the lower Mississippi Valley, but in
lower Alabama a good deal of land will go into
corn, oats, and potatoes. Georgia fertilizertag sales show an increase over last year and the
area in cotton and corn will be large.
The supply of loanable funds in the banks
remains at high level and is being steadily augmented,
Interest rates are low, first-class commercial
paper being in demand. Money being easy in
this district the cotton holding situation is still
strong, there being no disposition among the
banks to force the farmers and merchants to
dispose of their cotton now stored in the
warehouses.
DISTRICT NO. 7—CHICAGO.

The business activity previously reported
continues to manifest itself without evidence of
strain upon the financial structure. Banking
funds seeking legitimate investment are in excess of requirements, but there is more discrimination on the part of the paper-buying banks,
with the smaller names paying a premium over
the general minimum of 3 per cent, which has
existed for some time. While there does not
seem to be any lack of money in this district,
some authorities are looking for better rates
within the next few months. Banks in agricultural communities find this a dull season, as
the farmer is engaged in spring work and can
not give his attention to marketing operations,
Bond houses report a strong demand for
high-class municipal securities, and public-service issues are popular, with railroad and industrial bonds receiving some attention from
investors. The present outlook for this line is
satisfactory, with the demand frequently in
excess of the supply.
Bankers, manufacturers, and merchants are
generally united in their favorable views on the
business existing and in prospect, but some call
attention to the danger from heavy purchases

FEDEBAL BESBEVB BULLETIN.

at high prices, as such commitments are somewhat speculative, their successful termination
depending upon uncertain and uncontrollable
external conditions.
Cold weather delayed spring work in this section about two weeks, but present reports indicate favorable progress. The condition of fall
wheat is unsatisfactory in many localities, and
this has resulted in some additional acreage of
oats. Illinois reports considerable damage to
winter wheat, although some improvement in
the situation has been noted since warm
weather. Corn and oats are going into the
plowed-up wheat land. Indiana is in a similar
position, and the decreased wheat prospects
mean increased acreage for oats and corn. In
Iowa fall grain suffered in some sections, but
the general condition of the soil is excellent, and
the spring planting of corn and oats is making
good progress. A larger acreage than usual of
oats seems in prospect. Michigan looks forward to a good fruit crop, and other crops are
reported as satisfactory for this season of the
year. Wisconsin has an excellent outlook for
winter wheat in certain localities, but all of the
ground assigned to this crop was not so fortunate and some plowing under is probable, particularly in the southwestern part of the State.
Agricultural implements.—This line of industry is handicapped by the advances in material and the difficulty in securing deliveries.
Sales of acceptable volume are reported, a,nd
the manufacturers anticipate general improving
conditions™ Collateral sources corroborate the
activity in the implement business.
- Automobiles,—No decrease in the demand
lias put in an appearance and the manufacturers claim that- their product is sold up for
several months ahead with difficulty in securing materials with which to produce the machines.
Building and building material.—Construction throughout this district is quite active,
particularly in the manufacturing centers, and
this will probably continue as long as the
underlying causes operate. Business is reported as considerably greater in brick than
last year at the same season, with good pros-




285

pects for the future. While there is no abnormal demand for cement, a reasonably satisfactory prospect is evidenced and collections
are said to be good.
Coal.—Unsettled conditions prevail in coal
owing to the poor demand caused by the supply accumulated in anticipation of the April 1
strike, which did not materialize. Consumers,
however, are to some extent contracting for
their requirements for the ensuing year at what
are said to be fair prices.
Dry goods.—Wholesalers still enjoy a heavy
demand and are booking considerable future
business. Certain lines of merchandise are
difficult to obtain, and a feeling exists that
some of the purchases for fall delivery are of
more or less speculative character. The largest
business is said to come from the manufacturing
centers where labor is well eniploiz-ed at increasing wages. The consumer, according to
one authority, is purchasing a better grade of
merchandise than heretofore, and up to date
no unfavorable comment with regard to collections has been noted.
Furniture.—Grand Rapids and Kenosha factories apparently are enjoying a satisfactory
volume of business with some difficulty reported
in connection with raw materials and railroad
shipping facilities,
The crop prospects have had considerable
effect upon the grain markets during the past
30 days and scarcity of railroad equipment is
said to have interfered considerably with the
handling of grain.. Another factor in the situation is the prospect of an immense amount
of Canadian wheat moving east on the opening
of navigation in the Great Lakes.
In the city of Chicago the grocery business
is said to be of satisfactory volume, but throughout the smaller centers the retailers are not
purchasing to any extent although the orders
for future delivery are better than a year ago.
A satisfactory trade is reported in the territory
tributary to Des Homes, with collections unusually good.
Hardware.—The higher prices necessitated
by the difficulty in procuring steel products has
not to date decreased sales.. The retailers and

286

FEDERAL RESERVE BULLETIN.

the public appear to be taking an increased
quantity of merchandise, but the collections
are only fair.
Leather,—The advances in hides and tanning
materials caused by their scarcity indicate a
considerable demand, which is confirmed by
the reports from manufacturers in this line,
who also advise they are finding it increasingly
difficult to get sufficient labor. There is good
prospect for a continuance of this activity.
Sales of leather belting are said to show considerable increase over last year.
Liquor.—Tax payments for the fiscal year
are said to be at the rate of 34,000,000 to
35,000,000 gallons, with a prospective production of 1916 Kentucky whisky at between
20,000,000 and 22,000,000 gallons. Prices are
reported firmer and a number of distilleries are
working capacity, due to alcohol contracts.
The situation with the breweries appears unchanged, although there is some slight prospect
of improvement.
Live stock.—The packing industry reports an
exceptionally strong foreign demand, with an
increased scarcity of bottoms for export. Byproducts^ such as wool, hides, glue, and fertilizer, a-j*e in excellent demand, which would
show that the manufacturers using these products are fully employed. Live-stock prices are
holding firm, and the indications are that the
supply of live stock throughout this district is
not as large as usual. An interesting comment
is to the effect that hogs fed on Iowa soft corn
have been figured to yield as high as $1 per
bushel for the corn fed, based on present selling
price of hogs and the increased weight per
bushel of corn fed.
The improvement formerly reported in lumber seems to continue, and there has been a
strong demand for all kinds of lumber, which
has firmed up the prices, with advances in values recorded in some of the products. Collec
tions are not yet satisfactory, but some improvement is noted.
The local mail-order houses show increases
in their sales through this district, with marked




MAY 1,191$.

activity in automobile supplies, groceries,
sporting goods> and textiles.
The paper industry is having difficulty in
procuring raw material, prices have gone up,
and at the present time there is a tendency
toward inactivity, owing to the disposition of
the buyers to take on only limited supplies.
Steel and wire goods, which enter into the
construction of pianos, have considerably increased the expense of the finished article.
Sales are showing some hesitancy at this time
and collections are fair.
The steel companies in this territory are
accepting some orders for 1917 delivery. The
present demand continues in excess of capacity,
and prices have been fully maintained.
Watches.—Watch factories continue to enjoy
the increased activity reported last month, <and
there is good prospect for a continuation of this
condition for some time to come. April is expected to show a very satisfactory increase in
business over the same month a year ago.
Wool and woolens.—The situation in the wool
market is quite similar to last month, with mills
well covered on raw material. Supplies, however, are not excessive and the activity in this
line is expected to bring about an increased der
mand within the next few months. Manufacturers are feeling the shortage of raw materials
and dyestuffs without prospect for immediate
relief. Collections are said to be good.
Clearings in Chicago for the first 20 days of
April were $1,049,000,000, being $178,000,000
more than for the corresponding 20 days in
April, 1915. Clearings reported by 18 cities in
the district outside of Chicago amounted to
$220,000,000 for the first 15 days of April, 1916,
as compared with $164,000,000 for the first 15
days of April, 1915, and $225,000,000 for the
first 15 days of March, 1916. Deposits in the
eight Central Reserve City member banks in
Chicago were $645,000,000 on April 18, 1916,
and loans were $434,000,000. The deposits
show a decrease during the past month of
$3,000,000, and the loans a decrease of
$4,000,000.

MAT

1, 1916.

FEDERAL RESERVE BULLETIN.

DISTRICT NO. 8—ST. LOUIS.

This district is in excellent business condition. Producers and manufacturers are operating to their capacity, shipments of merchandise show large increases, and the buying
power of the general public has increased.
This bank has obtained reports' from a
large number of wholesale firms located in nine
of the principal cities in this district. The list
comprises wholesale and jobbing firms of the
highest rating, who de^l in the necessities of
life. Reports from these companies covering
the first quarter of 1916 have been carefully analyzed. Business for the first three
months of 1916 was compared to the average of these three months for 1915, 1914,
and 1913. It was deemed essential to make
a comparison with the approximate normal of
three years, instead of any one year, thus eliminating at least to a degree temporary or other
depression or expansion.
From, an examination of the reports it appears that these firms show an average increase
in shipments of 16 per cent for the period
noted. The volume of unfilled orders on
hand April 1 was 26 per cent larger than the
three-year average. Their collections received
during this same period were 10 per cent above
the average collections of these three months
for 1915, 1914, and 1913, and the amount of
past-due accounts on hand April 1 approximately 15 per cent smaller than the average
for April 1 of the three previous years. The
present prosperity of the district is indicated
by the increase in shipments and by an almost
corresponding increase in collections, the complement of which is a smaller volume of pastdue accounts. The faith in the future is indicated by the marked increase in orders for
future delivery.
Only four of all the companies reporting
showed a decrease in shipments for the first
quarter of 1916 as compared to the average of
the same months for the three previous years,
and this loss was so slight as to be of no importance. It appears that the grocery and grocery commission business show smaller gains




237

than other branches of industry. In all inquiries merchants were requested to give us
their opinions of business and agricultural conditions. The answers were almost without exception optimistic. Comments such as these
appear in the reports:
St. Louis. Business and agricultural conditions both very good. Business and agricultural conditions are very favorable. Retail
business appears to be active. Reports received from our traveling men are most
encouraging. We think business conditions
are considerably better than they were in the
years mentioned.
Memphis, Tenn. Planting delayed on account of bad weather. Conditions very good.
Good, and splendid prospects for its continuance.
Louisville, Ky. Business and agricultural
conditions good. Conditions fair. Western
Kentucky affected by tobacco situation.
Paducah, Ky. Only fair.
Evansville, Ind. Generally good.
Little - Rock. On the whole business and
agricultural conditions are as good as we have
ever had in this State. Business conditions
are much better than last year. Agricultural
conditions good up to the present, but cotton
planting retarded account of late season.
Fort Smith, Ark. Business very good.
Healthiest business conditions for years. Agriculture not sufficiently advanced to warrant
prediction.
Springfield, Mo. Business hampered only by
failure of mills to deliver. Agricultural conditions very favorable.
The total of failures for the first three months
of 1916 as compared to the same period of 1915
show a marked decrease both in number of
failures and total of liabilities, while comparing
1916 to 1914 the number of failures is approximately the same, but the total liabilities of 1916
is only a little more than half that of 1914.
State officers who have charge of issuing
licenses for automobiles in this district have
furnished figures from which a comparison of
the number of licensed automobiles in opera-

238

tion April 1 for 1914, 1915, and 1916 has been
compiled. From these figures it appears that
the number of automobiles in operation on
April 1 has more than doubled in the two years
from April 1, 1914, to April 1, 1916, and this
would seem to indicate prosperity in this and
allied industries.
From reports it would seem that agricultural
conditions are in the main favorable. Cotton
planting in the southern parts of the district
has been somewhat retarded by the late spring
and the wheat crop in the central portions of
the district has been damaged to a considerable
extent. Winter wheat acreage in this district
has been reported to be smaller than in 1915 or
1914 and estimates of condition as of April 1
confirm previous reports of damage to this
crop.
Condition of wheat
Apr. 1.
1916
Arkansas...
Illinois
Indiana
Kentucky..
Mississippi.
Missouri
Tennessee..

I

10-year
average.

1915

Dec. 1,
1915.

90

This report shows what appears to be serious
damage to the wheat in the large wheat-producing States of this district. Estimates of
final production based on reports of condition
at this time must not, however, be considered as
necessarily conclusive.
The cotton acreage in the southern parts of
this district is larger than last year and the favorable conditions should produce correspondingly large crops. Merchants, however, are
making an earnest effort to persuade southern
planters to continue the diversification of crops
or to plant at least enough foodstuffs and grain
to supply the needs of their respective communities. Reports from the Arkansas strawberry district are favorable. It is expected
that the crop will move to market the latter
part of April or early in May. A report from
strawberry producers in Kentucky reads as




MAY 1,1916.

FEDEBAL BESEBVE BULLETIN.

follows: "This year bids fair to be the largest
of any we have yet had."
The egg market in St. Louis is active. Current prices are approximately 19J^ cents as
compared to 18J^ cents a year ago. Stocks in
storage were of course exhausted in March,
and while the supply of eggs is normal for this
season of the year, the demand for storage purposes seems to have resulted in the increase in
price.
The somewhat late spring has retarded the
production of truck-farm products. Homegrown fresh vegetables are just beginning to
appear on the market.
There has been little change in banking conditions since the last report. Indications are,
however, that excess reserves are not as large
as they were 30 days ago, and this should in
course of time have its effect on rates for discount. There was a tendency noted a month
ago for higher rates, but it can not be said that
they have gone up in any marked degree.
Commercial paper is still quoted at 3 to 3^ per
cent and the rate for commercial loans in the
large cities is still approximately 4J per cent.
The bond market does not seem to be as active
as it was a month or six weeks ago. It seems
probable that anxiety due to possible complications with foreign Governments may have its
effect on the market in general.
Below is a statement of the clearings of the
principal centers in this district for March, 1916,
compared to March, 1915, and for the first
quarter of 1916 as compared to the first quarter
of 1915, with the percentage of increase or
decrease for each city. The increases are
substantial in every case except one and this
is so slight &s to be of no significance.
March clearings.
1916

1915

Per cent
increase
or
decrease.

Evansville..
Paducah.. St. L o u i s . . .
Louisville..
Memphis...
Little Rock.

$8,350,877
3,524,562
407,980,696
80,314,341
33,610,798
11,104,781

$5,255,606
2,238,997
336,424,843
54,112,850
34,410,605
9,155,897

58.9
8.8
21.3
48.4
- 2.3
21.3

Total.

544,886,055

442,598,798

23.1

1, 1916.

FEDERAL BESEEVE BTJLEETIlSr.

Cleanmgs forfirst quarter^-January, February, and March.

1916

Evansville
..
Paduean...
St. L o u i s . . . . . . . . . . . . .
Louisville.
MempMs....
LittleBoek
Total

1915

Per cent
increase
or
decrease.

$23,801,346
11,247,137
1,194,236,437
245,131,432
107,673,968
31,993,786

$14,731,482
10,176,855
988,433,173
165,522,152
99,917,427
27,527,823

61.6
10.5
20.8
48.1
7.8
16.2

1,614,084,106

1,306,308,912

23.5

In March, 1916, this bank cleared 204,922
items, or a total of $90,667,565.72, the largest
clearings both in number of items and amount
cleared of any month since the bank has been
in operation, and shows a really important
gain as compared to the figures of March, 1915,
which were: Number of items, 154,630; total
amount, $51,190,674.05.
DISTRICT NO 9—MINNEAPOLIS.

Interest is centered upon early spring conditions to the exclusion of practically all other
developments in business. It is conceded that
the grain territory, which embraces two-thirds
of this district, will show a reduction in wheat
acreage for 1916, at present estimated at 10
per cent, due to the shortage of fall plowing
last year and the lateness of the season this
year. Planting will be two weeks late, but
this is not regarded as serious a disadvantage
as the fact that the lateness of the season is
cutting down the amount of spring plowing
that would otherwise have been done.
Seeding is general in central South Dakota
and southern Minnesota, and is in progress at
other points. With favorable weather a good
crop is looked for, even if planting is not completed over the territory as a whole before the
first week in May.
It is pointed out that while the seed was in
the ground by mid-April last year, the planting was followed by many weeks of cold, raw
weather, and that the seed was slow in germinating, and the crop made no substantial
progress until toward June 1.
Damage has been done to winter wheat in
Montana, and a proportion of the acreage is




239

being reseeded with marquis wheat. Over the
district as a whole a considerable amount of
wheat will be disked in on the stubble, and
such planting will require favorable weather to
produce the best yield. Farmers are rushing
their spring operations as fast as the fields dry
up sufficiently to permit spring work, and
have been buying the light type of tractors
freely in an effort to increase the amount of
spring plowing, and overcome the handicap of.
shortage of fall work last year and the late
season.
Moisture conditions over the district are
excellent. Floods have done some damage in
isolated localities and will hurt spring operations on a considerable amount of low land.
Moisture in the ground, however, is sufficient
to give the crop a good start.
The wholesale and retail trade are both
prosperous. Wholesale trade is showing an
increased volume of business over a year ago,
in the face of advancing prices and some difficulty in obtaining deliveries from eastern
manufacturers. Collections have been active.
Trade at local points is brisk, and is improving
as the roads dry up.
Industrial conditions are excellent over the
entire district. Labor is fully employed at
good wages, and the production of all manufacturing concerns, if maintained, will create new
records for 1916.
The iron mines of northern Minnesota will
produce heavily, and advance estimates are
that 40,000,000 tons of ore will be shipped down
the Lakes during the season. This will be
considerably in excess of previous years.
Similar conditions prevail in the copper districts of northern Michigan, the iron districts,
and the copper districts of Montana.
Construction is responding to the favorable
conditions in business, and a very large amount
of building is in progress.
DISTRICT NO. 10—KANSAS CITY.
During the past month this district has
experienced an unusual variety of weather
conditions. Central Kansas reports not only
a maximum temperature as high as the pre-

240

FEDERAL RESERVE BULLETIN.

vious record, but one degree lower than recorded during the past 28 years. The spring
opened early, but there was a serious retarding
of activity by reason of a general snowfall
and freezing temperature which, however, was
of short duration and little resultant damage.
While precipitation has been below normal
over the entire district, crop conditions have
seldom been better at this season of the year.
.The faE wheat has passed through the winter
in good condition and is beginning to make
rapid growth. Prospects are favorable for an
unusually large corn acreage. In the western
portion of the district the season is about 10
days later than last year.
The car shortage has been somewhat relieved by the daily receipt of cars formerly
tied up on eastern lines. Railroad earnings
show material improvement.
There are no labor disturbances of importance in thi district. Increased business in
all lines and the generally prosperous condition of the district gives every indication of
increased real-estate activity and an unusual
amount of immigration,
The prices of cattle, hogs, and sheep continue satisfactory. The excellent prices being
maintained on hogs is especially interesting,
since the hog has been called the "mortgage
lifter." Price records continue to be broken
at all the stock markets of the district. Stock
hogs can now be shipped from Kansas City
stockyards to the Kansas farms, an order to
that effect having just been issued by the
State sanitary live-stock commissioners. For
years the only shipments allowed out of this
hog market were to other stockyards for immediate slaughter, because of the danger of the
spreading of cholera which has now been
practically eliminated by the system of inoculation.
Oil production and drilling continues on an
extensive scale, with prices commonly quoted at
$1.55, base. There are more than 1,700 welldrilling rigs up in the Kansas-Oklahoma district. New fields are being opened up in
nearly every State in the district and develop-




MAY

1, 1916.

ment operations are believed to have reached
their greatest height. There were 1,200 wells
completed last month. The deliveries of the
Mid-Continent field by all pipe-line companies
in January have been given out as 8,376,000
barrels. The general decline in the oil production in the eastern fields has greatly increased
the demand for production from this field.
There appears to be no cessation in the volume of business being handled by wholesalers
and retailers. Practically without exception
shops and factories are working to full capacity
and much overtime work is in effect. Business
is somewhat hampered by the scarcity of raw
materials and of skilled laborers. Collections
are reported unusually good.
Spring trade in agricultural implements is
unusually large. Dry goods sales have exceeded all former records by a large margin.
In footwear business is averaging 50 per cent
better than last year, and millinery shops report
a flourishing business.
The lumber and timber business has shown
a healthy vitality during the first quarter, which
has made both business and collections much
better than in the corresponding period in 1915.
The highest price paid for silver since 1912 is
aiding the industry and is a notable development of an abnormal financial situation. The
increasing price of this metal is reopening old
mines. With tungsten selling at $90 a unit,
Colorado has a mining fever like the days of
Creede and Cripple Creek strikes.
Smelter bins are practically clear of surplus
blende and lead ore in the Missouri-KansasOklahoma district. Lead ore has gone to a
record level, $102.50 being paid by some companies for choice ores. Pig lead has reached
$8, the highest point on record, while fine zinc
blende sells for $120 a ton. The production
continues large in this district and has seldom
been surpassed in its history. Heavy rains in
Oklahoma have made it impossible for many
of the newer plants to load their ore, but all
mills are running to capacity.
Indications are for a broadening demand for
money. However, the usual spring demand

MAY

1, 1916.

FEDERAL RESERVE BULLETIN.

for funds has not made itself felt. Neither do
commercial-paper offerings show any material
increase.
Omaha bank clearings have registered a gain
every week so far this year, while banks in
Oklahoma City, made in March a new high
record. The total clearings exceeded the aggregate for March-, 1915, by about 40 per cent,
and similar increases are commonly reported
from all parts of the district.
DISTRICT NO. 11—DALLAS.

Rains over most of the district have revived
business, which up to one month ago was inclined to be sluggish on account of the drouth
which had prevailed since early February over
practically this entire section. The rains were
especially heavy in central and north Texas
and southern Oklahoma, and as a result the
crop outlook has been materially changed. If
weather conditions now continue favorable up
to midsummer the 1916 crop, especially in
Texas, will not be lessened in yield or value.
Most of the acreage on which the grain was
killed by the cold weather of the late winter
has now been replanted in oats or corn. The
early potato crop is now being marketed at
good prices. It is estimated the crop comprises about 20,000 acres, which is a material
increase over last year.
The freeze of April 8 does not seem to have
materially damaged the fruit and berry crop.
Young garden vegetables were injured. The
tomato plants were still in cold frames and no
serious injury is reported. Reports from the
largest fruit and truck growing fields in the
district are very encouraging. A large crop of
strawberries is now being marketed, and prices
are very satisfactory.
Unfavorable reports come from the southwestern part of the district, which did not have
the benefit of the fine rains over the northern
portion. No rain has fallen in the extreme
southwest for over three months, and stock
water is becoming very scarce. Some cattle
are dying, and unless rains soon come conditions will be quite serious.




241

The onion crop from the Laredo section was
below the normal yield, owing to the ravages
of the thrip in the growing sections. The total
yield this season is estimated at 1,800 cars,
as against 2,600 cars last year. Prices obtaining have been only fair, and the average has
been around $400 per car.
Cotton is about all marketed. There are a
few scattering lots over the district, but it is
as a rule of such quality that buying has practically ceased. Conditions at this time, on
account of the rains, are more favorable for a
reduction in acreage than a month ago, but
that there will be a considerable increase there
is no doubt. The agitation of better warehouses and the gradual marketing of the crop
it is thought will have a good effect; in fact,
much good has already resulted from this movement, and the campaign now being carried on will
be reflected in the handling of the 1916 crop.
Demand with banks is getting rather active
as the season advances, and another 30 days
should develop the seasonal requirements.
There is no indication of any contraction, and
rates remain unchanged. Offerings with this
bank are coming in strong, and our loans and
discounts show an increase of some $250,000
over a month ago. Of the paper being offered
probably 75 per cent consists of that of cattlemen and farmers. Member banks are in good
condition to meet their customers1 needs. Unless conditions materially change there should
be no occasion for outside assistance other than
in normal years. With the assistance of this
bank the requirements of the district should
be taken care of without inconvenience.
Building operations show a healthy improvement, which is reflected in the demand for material. Lumber is very active, at good prices;
mills continue to run on full time. The cement
industry is likewise enjoying a good business,
and shipments over the district indicate a continuance of this condition. Local factories
report their mills running continuously and a
ready demand for their output.
Reports from the oil fields indicate that 80
per cent more work is being done than a year

242

FEDERAL RESERVE BULLETIN.

ago, with prices of $1.55 to $1,75 per barrel,
as against 45 cents a barrel last year. Old
fields are being extended, and 80 per cent more
laborers are employed in tills industry than in
1-915.
A heavy snow in the western part of the district the early part of this month put the ground
in excellent condition. This will bring up early
grass, and the condition^ of the cattle industry
is quite satisfactory. Cattle wintered well.
Wholesale grocers report a substantial improvement in business over 1915, with collections good. A 40 per cent increase in orders
is reported by the large mail-order houses, with
uniform demand for all classes of goods.
An increase in freight traffic is reported by
the railroads, amounting to approximately 10
per cent. A serious car shortage is reported,
on account of congestion in equipment in the
North. This has resulted in the railroads
doubling their charge for demurrage. Passenger traffic shows a slight increase over 1915.
Business with retailers is reported as good
for this season, and spring trade is active. Collections are fair.
A comparative statement of the exports from
the port of Galveston for the month of March,
1915 and 1916, proves interesting. The value
of the exports for March, 1916, was $13,363,000,
which is a decrease over 1915. This is explained largely by the decrease in shipments of
cotton and cottonseed products, the value of
which commodities alone amounted to some
$17,000,000 in March, 1915. These commodities are consigned principally to France, Germany, Italy, Spain, Sweden, and England.
Quite a substantial increase in exports of rice,
hay, and spelter is shown over 1915, shipments
of the latter commodity alone amounting to
6,670,000 pounds and valued at $1,268,000.
Labor seems to be well employed throughout
this district. There is an especially active demand for workers in the agricultural sections.




MAY 1,1916.

DISTRICT NO. 12—SAN FRANCISCO.

The West Coast Lumbermen's Association,
composed of a majority of mills operating in
Washington and Oregon, reports March orders
34 per cent and shipments 30 per cent over
production, mostly for domestic use, exports
being restricted by lack of ships. There is
general activity, and prices are up $3 to $5 per
thousand.
Acute shortage has caused unparalleled activity in shipbuilding. Seattle reports contracts aggregating $11,000,000, nearly four
times the total at this time last year. The
principal builder at San Francisco is said to
have contracts in excess of $20,000,000, with
no diminution of demand even with important
advances in price because of increased prices
for material and labor.
Despite dearth of bottoms, Seattle reports for
January and February of this year, as compared
with same months last year, imports $35,693,042, increase $21,172,927; exports $15,885,204,
increase $4,73.2,108. San Francisco reports for
same period imports $21,198,558, increase
$8, 857,186; exports $15,735,910, decrease
$57,906.
Although the Panama Canal opened April
15, few ships are scheduled for immediate service between the Atlantic and- Pacific coasts,
both because now otherwise engaged and because extraordinary charter rates for exports
influence strongly to that service as against
coastwise service. The Pacific Mail Steamship
Co. has announced three steamers of moderate
size for San Francisco and China service.
California petroleum production averaged in
March 242,656 barrels per day as against
223,495 in February. Daily shipments from
fields were 276,378 and 258,264 for the respective months, reducing the amount in storage
1,045,388 barrels, approximately 6,000,000 barrels reduction since May, 1915. Eastern dealers
are reported as insistent buyers of all available

MAY 1,

1916,

FEDERAL RESERVE BULLETIN

gasoline and distillate on this coast. Activity
in drilling, greater than at any time for half p,
dozen years, is reported chiefly in the proven
oil land of the State, which aggregates 80,702
acres. In March 34 new wells were brought in
with an initial daily production of 6,790
barrels.
Extraordinary output and 'unusual prices
give copper precedence in metal mining, but
there is also great activity in mining gold, silver, lead, zinc, and other less well known
metals such as tungsten, antimony, magnesite,
and molybdenite, valuable deposits of which
are reported as being discovered.
Agricultural prospects are generally favorable, with especial benefit assured for many
crops from unusual precipitation during the
rainy months. Grain acreage will be less than
last year both because of necessity for summer
fallowing and because of unfavorable weather
during seeding time. Considerable stocks of
both wheat and barley are still on hand, more
than at the corresponding time in either of the
two preceding years. The 1915 rice crop in
California is reported as 80,000,000 pounds,
with 250,000,000 pounds estimated for 1916.
From Calexico, Cal.,. in the Imperial Vajjley,
comes the report that cotton acreage on the
American side will be increased from 12,000
acres last year to 40,000 this year; on the
Mexican side from 30,000 acres last year to
65,000 acres this year. Yuma, Ariz., reports
4,000 acres in cotton this year, and a normal
production of 2j bales per acre. Cotton seed
is said to be used extensively for fattening
cattle. Alfalfa cutting began early in April.
This crop and good pasture, because of much




243

precipitation, contribute especial advantage
because of high prices for all live stock.
Prunes and apricots in certain sections have
been reported damaged by frost. It is too
early, however, to predict with certainty
regarding these crops. Efforts* are making for
better organization in marketing fresh and dried
fruits, which should result in increased returns
to growers. Dried-fruit shipments from California in 1915 aggregated $36,924,000, an increase of $8,056,000 over 1914. Navel oranges
bring much better prices than last year, and
prospects for Valencias, which ripen about midsummer, are reported excellent. Lemons are
yielding fair prices. Raisin crop, 35 per cent
over 1914, aggregated 124,000 tons, valued at
$10,000,000. Acreage of Thompson seedless
raisins is increasing. Nine thousand five hundred and sixty-four cars of table grapes were
shipped out of California in 1915, and 1,000
carloads consumed in the State, yielding
growers $9,514,000.
Sweet-wine production for 1915 in California
was 4,000,000 gallons, against 16,600,000 in
1914, dry-wine production declining from
25,000,000 gallons to 21,000,000.
Heavy shipments of vegetables are now going
forward. Oanners are busy with asparagus, of
which about 1,000 carloads will be packed.
Merchants generally report good distribution
and good collections. Bank clearings for March
in 18 cities of this district increased 19 per cent
over March, 1915; building permits 11 percent.
Credit conditions are easy. The situation as a
whole in this district is favorable. There seems
prospect of large production and important increase in wealth during the current year.

244

FEDERAL RESERVE BULLETIN.

MAY

1, 1916.

DISTRIBUTION OF DISCOUNTS BY SIZES February and 6,342 in January of the present
year. The average size of the paper disAND MATURITIES.

The total discounts of commercial paper
made by the Federal Reserve Banks during
the month of March, 1916, were $9,387,300,
or 22.5 per cent in excess of the total for the
preceding month, though over 30 per cent
below the discounts in March, 1915. About
68 per cent of the month's discounts, as compared
with 79 per cent in February, is credited to
the three southern banks, Kansas City and
Chicago together reporting an additional 15
per cent of the total discounts for the month.
The aggregate discounts the first quarter of
the year were $28,166,800, compared with
$36,642,800 for the corresponding quarter in
1915. It is notable that whereas the discounts
for the quarter of 30-and 60-day paper show
large decreases as compared with corresponding 1915 figures, the amounts of 90-day, and
especially 6-month paper discounted during
the present year are larger than for the first
quarter of the past year.
Commodity paper, mostly secured by cotton,
was discounted by 5 banks and totaled
$1,718,987, constituting 18.3 per eent of the
total discounts for the month, compared with
23.4 per cent for February and 16.8 per cent
for January of the present year. Over 96 per
cent of this class of paper was handled by the
Richmond and Atlanta banks, of whose total
discounts for the month commodity paper constituted about 25 and 50 per cent, respectively.
Trade acceptances discounted during the
month by 7 banks aggregated $298,733, of
which nearly one-half is reported by the
Richmond bank. This total is exclusive of
$514,677 of trade acceptances, based upon
foreign-commerce transactions, and purchased
during the month by the 3 banks on the
Eastern Seaboard and the San Francisco bank;
also of $9,695 of domestic-trade acceptances
bought in the open market during the month
by the Atlanta Federal Reserve Bank.
The total number of bills discounted during
the month was 6,209, compared with 5,086 in




counted during the month was about $1,512,
compared with $1,507 for the preceding
month, $1,753 for January, 1916, and about
$1,800 for the last quarter in 1915. This average varies between about $2,570 for the Boston district (where, however, the total number of bills discounted during the month was
only 83), $1,952 for the Atlanta-New Orleans
district, and $815 for the Philadelphia district.
Over one-third of the number and 53 per
cent of the entire amount of the paper discounted during the month was medium-sized
paper in denominations of $1,000 to $5,000.
Small bills (in amounts up to $250) represent
over 20 per cent of the total number, though
less than 2 per cent of the aggregate amount
of paper discounted during the month. Of
the total number of such bills, 1,259, about
30 per cent was handled by Richmond, about
22 per cent by Atlanta, over 15 per cent by
Kansas City, and less than 14 per cent by
Dallas.
About one-half of 1 per cent of the paper
discounted during March was 10-day paper;
12.3 per cent 30-day; 33.9 per cent 60-day; and
40.5 per cent 90-day paper. About 1.2 millions, or 12.8 per cent of the total discounts for
the month, was' agricultural and live-stock
paper, maturing after 90 days at the time of
rediscount. Over 75 per cent of this class
of paper was handled by the Dallas, Kansas
City, and Chicago banks.
Of the 7,639 member banks reported at the
close of the month 535, or about 7 per cent,
were accommodated during the month through
the discount of paper, as against 451 in February, 1916, and 570 in March of the past year.
Richmond reports the largest number of banks
accommodated during the month, 116, or
about 23 per cent of the entire number of
member banks in the reserve district. Member banks in Texas to the number of 83 secured
about 1.3 millions of rediscounts, 43 banks in
South Carolina over 1.2 millions, 29 banks in

• MAY !, 1916.

245

FEDERAL EESEBVE BULLETIN.

North. Carolina over 1 million, 34 banks in these five States is about 55 per cent of the
Georgia over 0.9 million, and 30 banks in total discounts reported to the Board for the
Virginia over 0.6 million. The combined month.
share of rediscounts secured by 219 banks in
Commercial paper, exclusive of bankers1 ^acceptances, discounted^ by each of the Federal Reserve Banks during the month of
March, 1916, distributed by sizes.
NUMBER OF PIECES AND AMOUNTS.
[In thousands of dollars.]
To $100. Over $100 Over $250
to 1250.
to $500.

Over $1,000 Over $2,500 Over $5,000
Over
to $2,500. to $5,000. to $10,000. $10,000.

Over $500
to $1,000.

Total.

Per cent.

Banks,

Boston
New York
Philadelphia
Cleveland
Eichmond
Atlanta (including New Orleans branch).
Chicago
..
St. L o u i s . . . .
Minneapolis
Kansas City
Dallas
San Francisco
Total...

20 3.8
41 7.8
65 11.2
11 1.8
51.4
25
16
16
131
137

24.7
5.2
3.0
2.3
22,7
23.0

1.9
19.2
28.2
5.8
453181.6

43 32.1
47 37.
18 12.7
476 386.3

142
87
28
21
188
144
14

130 103.4
120 93.6
38 27.5
36 25.2
190 134.8
202 149.4
33 22.8

157
163
48
39
154
196
47

71.0
53.3
13.4
19.6
499.7

55.7
34.9
11.6
8.0
69.5
56.4
5.4

262.3
276.8
81.6
56.9
240.8
314.7
81.8

373.3
166.1

18

1.3 2.3
4.0 3.2
4.2 2.3
2.1 2.9
25.0
232.2 2,116 3,240.9 34.1 34.5

390.9
41.3
42.7
6.0
117.9
239.7
26.9

15 28.8
50 83.4
47 79.0
52 98.8
460 797.7

484.7

25.2

38.1
18 326.3
30.2

247
260

213.3
304.6
212.0

8731,704,1 14.1 18.1
447; 618.0 7.2 6.6
157 234.1 2.5 2,5
117 111.4 1.9 1.2
794 795.9 12.8 8.5
8581,445.5 13.8 15.4
124 238.7 2.0 2.5

35728.0 902 157.5 1,224 478.21,3411,032.5 1,428 2,402.6 673 2.604.4 2181,522.4| 66U61.7 6,209 9,387.3100.0100.0
P E E C E N T A G E S OF AMOUNTS OF EACH CLASS TO TOTAL.
Bank.

Boston
. . .
New York
Philadelphia
Cleveland
Eichrnond
Atlanta (including New Orleans
branch)
Chicago .
St. Louis
Minneapolis.
KansasCity . . . .
.
Dallas
San Francisco
Total




Over $100
to $250.

Over $250
to $500.

0.2
.5
.6
.1
.2

1.8
2.6
5.3
.7
1.6

0.9
6.3
13.3
2.2
5.6

3.2
10.5
17.9
4.7
11.9

13.5
27.4
37.2
36.7
24.6

47.1
26.9
19.4
39.0
33.5

33.3
17.5
6.3
7.3
15.4

.5
.6
.2
.1

1.5
.8
1.3
2.0
2.9
1.6
.2

3.3
5.7
5.0
7.2
8.7
3.9
2.3

6.1'
15.1
11.7
22.6
16.9
10.3
9.5

15.4
44.8
34.9
51.1
30.3
21.7
34.3

21.9
26.9
28.9
11.7
21.0
23.1
29.6

22.9
6.7
18.2
5.4
14.8
16.6
11.3

4.8
22.6
12.7

100.0
100.0
100.0
100.0
100.0
100.0
100.0

.3

1.7

5.1

11.0

25.6

27.7

16.2

12.4

100.0

To $100.

Over $500 Over $1,000 Over $2,500 Over $5,000
to $1,000. to $2,500. to $5,000. to $10,000.

•

Over
$10,000.

8.3
9.3
7.2
28.4

Total.
100.0
100.0
100.0
100.0
100.0

246

MAY 1,1916.

FEDERAL RESERVE BULLETIN.

Commercial paper, exclusive of bankers' acceptances, discounted during January by each of the Federal Reserve
distributed by States and maturities as of date of discount.
[In thousands of dollars.]
Number
Number
of banks
of member accommobanks.
dated.

Districts and States.

District No. 1—Boston:
Connecticut
Maine
Massachusetts i..
New Hampshire
Rhode Island
Vermont..
..
Total

10.1

Dsitrict No. 6.—Atlanta:
Alabama
Florida
Georgia
Louisiana
Mississippi
Tennessee

.
..

Total
District No. 7.—Chicago:
Illinois.........
-.

......

Total
District No. 8.—St. Louis:
Arkansas
Illinois

Indiana
Kentucky

Mississippi
Missouri
Tennessee
Total
District No. 9.—Minneapolis:
Michigan..
Minnesota
Montana.
North Dakota
South Dakota..
Wisconsin
:

.

213.3

132
482
15

2
12

6.1

5.0
5.5

5.2
107.2

11.0
164.1

0.5

21.2
283.4

14

6.1

10.5

112.4

175.1

.5

304.6

1
4
8

23.2

85.7
2.0

6.5
27.4
10.3

25.5
26.9

4.5

6.5
161.8
43.7

13

23.2

87.7.

44.2

52.4

4.5

212.0

72
375
299
14

2
7
3
1

2.1

65.7
1.9

3.9
132.9
4.9
10.6

1.3
26.3
12.5

6.7

5.2
233.7
19.3
10.6

13

2.1

67.6

152.3

40.1

6.7

268.8

14
97
79
76
138
104

1
9
29
43
30
4

.3

5.2
146.3
136.5
70.7
3.3

72.8
357.0
460.1
232.2
9.5

79.2
106.1
514.2
620.6
327.8
17.6.

2.4
12.7
38.1
.21.4

79.2
186.5
1,037.1
1,255.3
652.1
30.7

116

7.2

362.0

1,131.6

1,665.5

74.6

3,240.9

94
55
112
5
18
95

20
12
34.
2
0
12

.9
1.0

13.5
38.2
67.2
38.4

88.0
77.0
417.9
170.0

242.1
27.5
386.7

2.7
32.3

343.6
146.3
905.1
208.4

14.6

24.6

55.7

5.8

100. 7

80

1.9

171.9

777.5

712.0

40.8

1,704.1

317
196
349
77
51

16
9
28
1
2

1.0

24.5
11.0
11.9

61.8
25.1
49.0

48.2
36.0
126.4

2.0

79.0
39.7
89.5
2.5
2.5

6.2

3.7

211.5
112.8
276.8
2.5
14.4

56

1.0

49.4

213.2

142.1

212.3

618.0

5
9
2
1
3
7
3

4.2
.8

9.8
22.3
15.0
23.0
27.4
2.3

9.6
12.7
.5

7.3
2.0
10.3

.2
22.0
5.5
2.0
26.2
10.8
.9

18.8
.5

23.8
57.8
6.0
17.0
56.5
59.0
14.0

470

. . .

Total

62.4

32.9

65
157
61
68
18
81
20

District No. 5—Richmond:
District of Columbia
Maryland
...
North Carolina
South Carolina
Virginia
West Virginia

18.0

17.4

990

. . .

8.4

163.0

379

.........

36.0

9

508

.

3

24
70
533

:

2
2
2

760

.-.

.

Total




4.8

7.0

72
70
168
56
17
48

627

Ohio.
Pennsylvania
West Virginia

Total

2.0

Paper
Total
maturing commerafter 90 cial paper
days.
discounted.

629

^....

Total
District No. 4—Cleveland:
Kentucky.....

Michigan
Wisconsin

Paper
maturing
after 30
days but
within 60
days.

431

...

District No. 2—New York:
New Jersey
.
New York.
Connecticut. i... ^
Total
.
District No. 3—Philadelphia:
Delaware.
New Jersey....

Indiana
Iowa

Paper
maturing
after 60
days but
within 90
days.

Paper
maturing
after 10
days but
within 30
days.

6.0
120.0
1.0

Paper
maturing
within 10
days.

Banks,

30

24.6

67.6

99.8

42.1

234.1

31
280
68
154
120
88

0
7
0
2
8
1

.7

8.2

4.9

23.9

40.7

.9
12.5

5.2
38.3
.8

6.1
62.9
1.7

741

18

18.3

71.2

111.4

6.9

12.1
.9
.7

21.2

12.8
120.0
18.1

MAY 1, 1916.

247

FEDERAL RESERVE BULLETIN.

Commercial paper, exclusive q/* banker's\ acceptances, discounted during January byeach of the Federal Reserve
distributed by States and maturities as of date of discount—Continued.

Banks,

[In thousands of dollars.]

Number
Number
of banks
of member accommobanks.
dated.

Districts and States.

District No. 10—Kansas City:
Colorado
Kansas
Missouri
Nebraska
New Mexico .
Oklahoma
Wyoming

Paper
maturing
after 30
days but
within 60
days.

Paper
maturing
Paper
after 60
maturing
days but
after 90
within 90 < days.
days.

30.8
17.7
.1
2.0

14.8
48.0
6.6
25.5
3.6
105.4

11.2
54.9
30.5
20.9
59
94.7

114.4
20.9
16.1
9.0
107.8

56.8
239.1
58.1
64.5
18.5
358.9

101,6

203.9.

218.1

268.2

795.9

.5
6.3

3.7
1.5
5.9
7.4
519. 4

20.0
33.4
14.0
375.6

35.3
10 7
47.6
40.3
1,311.6

Total
commercial paper
discounted.

. . .

Total
District No. 12—San Francisco:
Alaska
.
Arizona.
California.
Idaho
...
Nevada
Oregon.
.
Utah
Washington

.

.

Total

2
21
5
0
1
31
69

6
25
28
36
539

1
1
4
5
83

4.6
66.3

11.1
2.9
8.3
14.3
350.3

634

.

120
220
53
202
9
306
33
943

. . . .

Total
District No. il—Dallas:
Arizona...
Louisiana
New Mexico
Oklahoma
Texas

Paper
maturing
after 10
davs but
within 30
days.

51.0

Paper
maturing
within 10
days.

94

77.7

386.9

537.9

443.0

1,445.5

18
1

39.8

45.4

79.6
1.3

35.1
1.7

199.9
3.0

3.1

30.4

2.3

35.8

39.8

48.5

111.3

39.1

238.7

Paper
maturing
after 10
days, but
within 30
days.

Paper
maturing
after 30
days, but
within 60
days.

Paper
maturing
after 60
days, but
within 90
days.

Paper
maturing
after 90
days.

Total commercial
paper discounted.

163.0
10.5
87.7
67.6
362.0
171.9
49.4
24.6
.7
101.6
77.7
39.8

17.4
112.4
44.2
152.3
1,131.6
777.5
213.2
67.6
21.2
203.9
386.9
48.5

32.9
175.1
52.4
40.1
1,665.5
712.0
142.1
99.8
18.3
218.1
537.9
111.3

0.5
4.5
6.7
74.6
40.8
212.3
42.1
71.2
268.2
443.0
39.1

213.3
304. 6
212.0
268.8
3,240.9
1,704.1
618.0
234.1
111.4
795.9
1,445.5
238.7

2.3
3.2
2.3
2.9
34.5
18.1
6.6
2.5
1.2
8.5
15.4
2.5

1,156.5
12.3

3,176.7
33.9

3,805.5
40.5

1,203.0
12.8

9,387.3
100.0

100.0

1,040.3
64.0
1,855.4
263.3
4,052.2
372.9
8,865.4

2,558.4
3,350.2
9,094.3
14,306.1

2,995.8
4,121.6
10,922.9
10,793.9

1,006.1
1,515.4
3,724.5
2,677.4

7,664,6
11,114.9
28,166.8
36,642.8

1
7
266
58
10
84
23
78
527

,

4.1

4.1

4

23

RECAPITULATION.
[In thousands of dollars.]

Districts and cities.

No. 1—Boston
No. 2—New York .
No. 3—Philadelphia.
No. 4—Cleveland. .

No 5—Richmond
No. 6—Atlanta
No. 7—Chicago
No. 8—St. Louis
No. 9—Minneapolis.
No. 10—Kansas City....
No. 11—Dallas
No. 12—San Francisco
Total for March
Per cent
Total for February, 1916
Total for January, 1916
Total for Jan.-Mar., 1916...
Total for Jan.-Mar., 1915




Number of Number of
banks acmember
commobanks.
dated.

431
629
627
760
508
379
990
470
741
943
634
527

9
14
13
13
116
80
56
30
18
69
94
23

7,639

535
7.0

i 7,643
7,649

451
614

Paper
maturing
within 10
days.

6.i
23.2
2.1
7.2
1.9
1.0
4.1

45.6
.5

i Corrected figures.

Percent.

248

FEDERAL RESERVE BULLETIN.

MAY 1,1916.

Trade acceptances discounted by each Federal Reserve Bank from Sept. 2, date of first discount, to Dec. SI, 1915, and for the
months of January, February, and March, 1916.
Total to
Dec. 31,
• 1915.

Federal Reserve Bank.

Cleveland
Richmond
Atlanta (including New Orleans branch)
Chicago..
St. Louis
EZansas City . . .
.
Dallas..
•.
San Francisco
. . .

January,
1916.

$5,700
4,900
450,500
1,007,100

-. -

.

.

Total
1

444,400

.

March,
1916.

3,500

$5,594
50,272
418,034
351,472
8,200
69,254
49,611
31,496
5,300

33,154
2,311
9,196

10,600
246,100

Total January, February, March.
1916.

$5,594
49,572
144,934
53,972

$700
135,800
95,500

$137,300
202,000
8,200
32,600
47,300
11,700
5,300

1,958,800

.

167,800
87,800
160,800
74,200

February,
k1916.

1

989,233

298,733

Included in total of commercial paper shown above.

Commodity paper discounted by each Federal Reserve Bank from Sept. 8, date of first discount, to Dec. SI, 1915, and for the
months of January, February, and March, 1916.
Total to
Dec. 31,
1915.

Federal Reserve Bank.

January,
1916.

February,
1916.

$2,881,400 $1,010,600 $1,092,200
7,032'300
745,800
622,700
99,800
1,300
25,300
9,100
81,900
239,100
57,600
24,000
13,100
37,200

Richmond
Atlanta (including New Orleans branch).
St. Louis
.
Minneapolis
Dallas........:
San Francisco
Total.

10,315,100
1

March,
1916.

Total January, February, March,
1916.
$2,905,300
2,222,300

900
55,000
6,800

11,300
194,500
43,900

1,794,700 11,719,000

1,863,600

$802,500
853,800

5,377,300

Included in total of commercial paper shown above.

Commodity paper discounted by each Federal Reserve Bank during January, February, and March, 1916, distributed by
Atlanta
Richmond. (including
New
Orleans).

Class.

Cotton
Peanuts.
Wheat.
Maize
Flax
Hops
Hav .
Beans
Miscellaneous

-

-

— . . . $2,865,333
\m 37,414

Minneapolis.

$2,218,445
900
1 021
M

I $187,576

2,500

1,605

$256

Total.

11,340

$5,271,610
38,314
9,735
7,965
1,605
19,611
400
480
27,543

43,870

5,377,263

>w& 6 944
19,611

480
1,040
2,222,286

San Francisco.

24,003

$9,735

'« %> 4 0 0

2,905,247

..

Total

Dallas.

194,520

Amounts of commercial paper, exclusive of bankers' acceptances, held by each Federal Reserve Bank on Mar. 31, 1916,
distributed by maturities.
Federal Reserve Bank.

Paper
maturing
within
10 days.

Paper
maturing
after 10
days but
within
30 days.

Paper
maturing
after 30
days but
within
60 days.

Paper
maturing
after 60
days but
within
90 days.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta (including New Orleans branch)
Chicago
St. Louis..
Minneapolis
—
Kansas City
Dallas
San Francisco

$43,100
42,000
75,400
62,600
1,131,900
673,900
188,800
87,400
102,300
234,800
542,000
59,600

$113,000
79,300
84,300
101,300
1,515,700
1,012,900
337,100
181,400
116,400
545,200
713,300
120,700

$12,600
176,800
76,400
145,100
2,281,600
1,660,900
531,100
156,200
270,400
477,400
1,559,600
104,500

$28,600
98,100
25,300
15,800
1,133,700
541,200
322,500
111,200
156,000
350,900
769,700
133,400

Total
Per cent

3,243,800
15.3

4,920,600
23.1

7,452,600
35.1

3,686,400
17.3




Paper
maturing
after 90
days.

Total.

Per cent.

$197,300
396,700
265,900
338,200
6,165,000
3,963,100
1,645,600
601,200
765,500
1,961,000
4,478,500
492,400

0.9
1.9
1.3
1.6
29.0
18.6
7.7
2.8
3.6
9.2
21.1
2.3

1,965,000 21,268,400
9.2
100.0

100.0

$500
4,500
11,400
102,100
74,200
266,100
65,000
120,400
352,700
893,900
74,200

MAT

1, 1916.

249

FEDERAL KESEKVE BULLETIN.

ACCEPTANCES.
Acceptances held by Federal Reserve Banks as per schedules on file on dates specified.—Total bankers1 acceptances by classes.
[In thousands of dollars.]
Nonmember bsinks.
Date.

Feb. 22
Apr. 5
May3
June 7
July3
Aug. 2
Sept. 6
Oct. 4
Nov. 1
Dec. 6
Jan. .3
Jan. 10
Jan. 17

Member
banks.

Nonmember banks.

3,653
5,038
5,242
4,342
5,350
6,087
9,000
8,477
12,311

,

7,820
8,189
4,516
5,267
5,407
6,305
4,898
4,331
5,172

20
20
132
253
275

110
110
192
161
352
472
343
204
396

15,494
16,492
16,908

1916,

1916.
93
Jan.24
11,593 J a n . 3 1 . . .
13,347 F e b . 7
9,960 Feb. 14
9 770 Feb.21
11,129 Feb. 28
12,'884 Mar. 6
14,373 Mar. 13
13,265 Mar. 20.'
18,154 Mar. 2 7 . .
Apr. 3
Apr. 1 0 . . . . . . . .
23,838 Apr.17
25,857 Apr. 24
25,998

16,348
15,834
15,681
17,581
.17,661
17,436
17,182
20,323
20,563
21,128
21,000
22,239
22,135
23,566

Total.
Trust
State
compa- banks. Private
banks.
nies.

1915,
93

Date.

Member
banks.

7,160
8,057
7,655

362
370
425

1,010

10
10
10

822
938

Total.
Trust
State Private
compa- banks. banks.
nies.
-8,070
8,174
7,876
7,985
8,194
8, 755
8,670
10,032
11,280
12,864
13,573
14,864
15,028
15,196

363
356
336
347
392
408
408
470
408
411
473
476
564
584

1,441
26,222
25,874
1,510
25,349
1,456
27, 764
1,851
28,088
1,841
28,440
1,841
28,041
1,781
32,456
1,631
,2,467 34,718
.37,481
3,078
38,308
3,262
40,984
3,405
41,169
3,442
142.850
3,504

i Acceptances indorsed by member banks: State banks, $9,000; private banks, $1,993,000; total, 82,002,000.

Amounts of acceptances held by the several Federal Reserve Banks at close of business on Fridays. Mar. 24 to Apr. 21, 1916.
[In thousands of dollars.]

Acceptances maturing—-

Within 10 days:
Mar. 24
Mar. 31
Apr. 7 . . . .
Apr. 1 4 . . . . .
Apr. 21.-.
From 11 to 30 days:
Mar. 24
Mar.31
Apr.7
Apr. 14
Apr. 21
From 31 to 60 days:
Mar.24
Mar.31
Apr.7
Apr.14
Apr. 2.1..
From 61 days to 3 months:
Mar.24
Mar.31..
Apr.7
Apr.14.
..
Apr.21
Total acceptances held:
Mar.24
Mar.31...
Apr.7.....
Apr.14.
Apr.21




Boston.

New
York.

Philadel- Cleve- Richphia.
land. mond.

San
AtSt. Minne- Kan- Dallas, Fran- Total
for
sas
lanta. Chicago. Louis.
cisco. system.
City.

$252
271
171
135
200

1118
279
130
5
122

$26
106
44
30
20

$40
79
33
45
96

§135
138
18
35
77

$4,534
3,883
3,672
3,729
4,902

24

332
175
232
364
596

245
87
149
158
178

123
64
172
137
239

93
91
124
162
281

144
75
160
446
533

6,260
6,551
6,638
9,201
8,087

78
95
214
368
551

795
957
1,145
1,278
1,120

196
298
367
479
510

259
238
276
470
460

296
371
496
519
375

638
626
595
577

13,521
13,942
15,348
17,098
19,484

310
522
591
553
459

238
175
302
170
175

786
624
610
818
844

290
449
518
443

267
365
362
405
350

258
239
180
257
261

226
291
405
832

14,930
15,548
16,458
14>079
11,764

1,025
1,278
1,346
1,639
1,691

574
270
766
788
750

2,165
2,027
2,158
2,595
2,760

687
675
843
780
773
954
833
854
1,095
983
1,160 1,042
1,253 1,069 1,013

1,108
1,142
1,209
1,908
2,052

39,245
39,924
42,116
44,107
44.237

779
•1,318
1,132
1,649

$2,942
1,494
1,216
1,041
1,589

$334
596
444
970
1,059

$15
141

1,786
2,175
2,034
3,274
2,271

2,102
2,235
2,388
3,695
2,847

933

1,522
1,207

**50'

741
763

252
112
107
224
355

3,959
4,352
4,197
5,176
5,853

4,974
5,080
5,414
5,100
6,992

1,913
1,410
2,063
2,337
2,259

448
503
550
776
787

5,893
4,933
4,615
1,968
965

4,707
6,384
7,054
6,996
5,436

12,236
12,239
12,164
11,550
10,738

14,725
15,193
16,072
16,832
16,864

1,961
1,725
1,890
1,562
1,966
5,141
5,253
5,604
5,610
6,047

S66
200
250

90
250

250

FEDERAL RESERVE

Amounts

BULLETIN.

MAY

1, 19X6.

of acceptances (in the foreign and domestic trades) purchased by each Federal Reserve Bank during the calendar year
1915, and for the months of January, February, and March, 1916.
[In thousands of dollars.]

Boston.

Acceptances maturing—

New
Philadel- Cleve- EichYork. . phia.
land. mond.

Atlanta.

$
Within 30 days:
Calendar vear 1915
January, 1916.
February 1916
March, 1916

11

1,246
587
909
680

695

Total......

545

3,422

1,713

215

2,137
102
41
98

2,377
621
313
520

1,464
43
36
1,835

2,378

3,831

11,471
2,681
3,686
5,913

7
41
15

156

103

18

45
20
1

69
9

50

61
6
125

2,980
734
1,453
1,454

50

192

6,621

After 60 days but within 3
months:
Calendar vear 1915
January, 1916
...
February 1916
March, 1916
Total

-

Total acceptances bought:
Calendar vear 1915
January 1916
February, 1916
March, 1916.....
-

7

174

103

66

78

746
42
30
70

19
18

816
279
116
150

374
43
50
146

191
6
33
44

183
55
22
151

750
13
13
107

9,057
1,204
654
3,139

3,378

888

37

1,361

613

274

411

883

14,054

22,211
2,686
4,157
6,978

5,406
151
396
2,183

2,116
267
395
579

250

46
300
65
421

4,810 1,324
489
357
656
143
787
355

1,219
200
194
365

1,536
151
197
285

2,419
304
420
459

52,808
7,586
10,309
18,325

23,751

36,032

8,136

3,357

250

832

6,742

2,179

1,978

2,169

3,602

89,028

25,834
3,894
5,379
8,178 .

7,565
194
709
4,759

2,963
373
475
649

250
41
15

72
300
65
439

5,782
768
772
955

1,801
400
193
501

1.455
226
228
409

1,788
215
219
436

50

3,230
323
558
566

64,845
9,524
12,416
22,918

26,674

Total

Distribution

101
64
50

14,105
2,831
3.727
6,011

After 30 but within 60 days:
Calendar year 1915
January 1916
Febnia rv 1916
March, 1916

Total

277
741

San
KanTotal
St.
Chicago. Louis. Minne- sas Dallas. Franfor
apolis. City.
cisco. system.

43,285

13,227

4,460

306

876

8,277

2,895

2,318

2,658

50

4,677

109,703

56

of Mils bought in open market by all Federal Reserve Banks during the month of March, 1916, by classes of
acceptors and sizes.
To $5,000.

Over $5,000
to $10,000.

II

Total bankers 1 acceptTrade acceptances

.

Total bills bought i n
open m a r k e t . . . . . . .
Per cent

265

Over $25,000
to $50,000.

Over $50,000
to $100,000.

Over $100,000.

II

134 $490,007 112 $955,965
283,406
739,614
90,625
32,443
40,402
69,299

Member b a n k s . . .
Trust companies.
State banks
Private b a n k s . . . .

Over $10,000
to $25,000.

904,440
37,468

1,797,321
186,233

$3,276,115
2,265,183
301,595
494,146

$2,480,573
1,310,734
30,000
668,364
17

39 $3,209,925
1,237,377

6,337,039
241,393

4,489,671

61 5,035,985
59,278

941,908 234 1,983,554 356 6,578,432 108 4,489,671
8.7
4.1
19.6
28.8

a
<
$2,144,046

1,635,127

Total.

r
544 $12,556,681 54.9
345 7,471,441 32.7
47
454,663 2.0
75 1,860,894 8.1

22 3,779,223 1,011 122,343,679
S
59
524,372

62 5,095,263 22 3,779,223 1,070
22.3
16.5

Total for Jan.-Mar... 749 2,278,542 613 5,012,301 769 14,240,484 204 8,177,999 100 7,993,470

97.7
2.3

22,868,051 100.0
100.0

37 7,105,598 2,472 44*808,394

* Of the above total of bankers' acceptances, $22,014,084 was based on imports or exports and $329,595 on domestic trade transactions.
2
Of the above total, $514,677 was drawn abroad on importers in the United States and indorsed by foreign banks, while $9,695 represents the
amount of domestic trade acceptances bought during the month in the open mar Vet.




251

.FEDERAL BESEKVE BULLETIN.

MAY 1,1916.

Total investment operations of each Federal Reserve Bank during the month of March, 1916 and 1915.
[In thousands of dollars.]

Bank.

Boston
. ...
New Y o r k . . . . . . . . ..
Philadelphia
Cleveland. .„
Richmond
Atlanta
Chicago
St. Louis
Minneapolis .
Kansas City
Dallas . . . .
San Francisco.

Bills bought J n open
market
Bills
discounted
for
Bank- Trade
memers'
acber
accept- Total.
banks. cept- ances.
ances.
213.3 5,996
304.6 7,794
212 0 4'744
'649
268.8
15
3,240.9
1,704.1
429
955
618.0
501
234.1
. 111. 4
409
759.4
436
1.445.5
466
238.7

Totals:
March
9,350.8 22,394
February
7,664.6 11,894
January.
li.114.9 9,375
3 months ending Mar. 31,
1916....
28,130.3 43,663
3 months ending Mar. 31,
1915
35,642.8




15
384
15

Municipal warrants.

City. State. All Total.
other.

31

955 1,221.0

io

6.011 1,071.1
8,178 3,582.6
4 759 852.6
649 1.407.7
15
10.0

6.1

501
409

436

100

578. 7
632.3
593.7

566

458.3

United States bonds.

2 per
cent.

1,071.1
3,582.6 3,202.6
855.7 716 0
5.6 1,413.3
356.0
10.0
1,236.6
3.1 1,230.2
29.0
578.7
632.3 337.6
593.7 1,492.25
32 0
458.3

3 per
cent.

440.0
• 5.0

321.0

4 per
cent.

Total.

Total investment
operations.

1916

7,295.4
15,267.2
6,542.7
2,854.1
3.621,9
3,384.7
3,153.2
1,313.8
337.0 1'. 489. 7
1/492.25 3,281.35
32.0
1,477.5
1,263.0

3,202.0
716.0
83.0
523.0
356.0
1,241.6
350.0

19.15

1,515.9
4.314.7
2,356.4
1,886.7
4,266.1
2,890.1
3,372.5
1,128.0
809.0
. 842.2
2,230.0
1,223.3

524
522
149

22,918 10,408.0 9.2
12,416 10,393.3 20.4
9,507.8 236.0

8.7 10,425.9 7.400.85 766.0
83.0 8,249.85 50,944.55 26,834.9
11.2 10,424.9 !6J82.25 1,739.5 975.0 19,496.75 40,002.25 20,345.8
62.5 9,806.3 4,393.80 1 403.38 1,830.0 16,627.18 37.072.38 23,450.3

1,195

44,858 30,309.1 265.6

82.4 30,657.1 18,576.90 2,908.88 2.888.0 24,373.78128.055.68
16.409.4 5,486.8 1,070.0

1

Corrected figures.

6,556.8

70,631.0

252

M i l l , 1916.

FEDERAL RESERVE BULLETIN.

FEDERAL RESERVE BANK STATEMENTS.
Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of business on
Fridays, Mar. 31 to Apr. 21, 1916.
RESOURCES.
[In thousands of dollars.]
Boston.

Gold coin and certificates
in vault:
Mar.31
Apr.7..
Apr. 14
Apr.20-21....
Gold settlement fund:
Mar.31....
Apr.7...
Apr. 14
Apr.20-21
Gold redemption fund:
Mar.31
-Apr.7
Apr.14
Apr.20-21...
Legal-tender notes, silver,
etc.:
Mar.31
Apr.7
Apr.14
Apr.20-21
Total reserve:
Mar.31
Apr.7
Apr.14
Apr.20-21
Bills discounted—Members:
Mar.31
Apr.7...
Apr.14
Apr.20-21
Bills bought in open
market:
Mar.31
Apr.7
Apr.14...
Apr. 20-21
One-year Treasury notes:
Apr.7
Apr.14
Apr.20-21
United States bonds:
Mar 31
Apr.7
Apr. 14
Apr.20-21
Municipal warrants:
Mar 31. •
Apr.7
•..
Apr.14
Apr. 20-21
Federal reserve notes, net
assets:
Mar 31
Apr.7
Apr.14
Apr.20-21....
Due from other Federal
Reserve Banks, net:
Mar.31
Apr.7
Apr.14
Apr.20-21
All other resources:
Mar.31
Apr.7....
Apr.14
..*..
Apr.20-21
Total resources:
Mar.31
Apr.7
Apr.14
Apr.20-21




1

New
York.

Philadelphia.

Cleve- Richland. mond.

Atlanta.

St.
Chicago. Louis. Minneapolis.

City.

San
Dallas. Francisco.

Total
for
system.

161,707
156,763
156,890
152,544

5,883
5,667
8,013
4,946

11,630
11,666
11,708
11,806

4,768
4,798
4,815
4,850

5,764
5,563
5,696
5,862

33,986
31,780
29,342
31,853

4,957
4,997
4,885
4,671

3,654
3,569
3,579
3,582

4,675
4,066
4,216
4,390

4,020
3,905
3,807
3,809

7,040
6,641
6,748
5,713

258,052
245,778
245,714
239,882

6,329
8,106
6,342
4,927

7,766
7,380
5,923
5,740

9,749
9,972
8,519
8,109

10,733
11,424
10,430
10,289

4,111
2,751
2,631
2,489

8,467
9,526
9,990
8,159

3,497
3,986
5,055
5,039

4,591
4,688
4,630
4,643

4,161
4,769
4,359
3,702

10,373
9,157
9,397
9,730

2,738
2,974
2,360
2,341

75,640
80,011
75,690
74,785

5
5
5
5

250
250
250
250

50
50
50
50

313
274
262
235

320
291
318
291

200
200
200
200

10
82
60
43

30
30
30
30

65
76
66
82

242
248
227
232

10
10
10
10

1,548
1,549
1,495
1,473

35
7
87
19

1,855
4,499
4,553
1,637

3,057
2,488
2,186
1,790

1,085
957
946
956

127
79
83
109

240
275
244
299

1,149
1,080
1,135
2,380

822
818

482
483
501
502

185
193
194
169

702
746
813

12
13
7
13

11,600
11,504
9,505

13,223
11,653
12,161
15,497

170,141
169,618
168,035
159,358

16,756
15,585
16,172
12,526

22,517
22,628
21,190
20,916

43,802 9,355
42,586 9,889
40,667 10,822
42,592 10,571

8,757
8,770
8,740
8,757

9,086
9,104
8,835
8,343

15,455
14,012
14,177
14,584

9,800
9,638
9,125
8,077

345,178
338,938
334,403
325,645

198
283
319
312

396
439
415

266
317
537
545

336
507
577
461

4,478
4,665
4,735
4,845

492
519
470
436

21,267
22,268
22,162
22,067

12,239
12,164
11,549
10,738

15,193
16,072
16,832
16,864

5,253
5,604
5,610
6,047

1,278
1,346
1,639
1,691

1,142
1,209
1,909
2,052

40,408
42,116
44,108
44,237

250

1,532
1,532
1,532

'3,288
3,288
3,048

3,202
2,449
2,549
2,550

4,206
4,490
3,528
3,528

4,224
3,849
4,094
4,134

1,676
1,676
1,751
1,295

2,603
2,578
2,483
2,481

14,993
14,824
15,165
15,156

3,330
3,308
3,350
3,291

2,950
4,950
4,991
4,969

91
60
60
60

1,111
719
1,137
1,000

14,325
10,384
10,480
9,888

116
172
138
203

352
375

2,628
3,173
3,008
5,429

625
279
431
1,137

10,058
6,015
5,856
3,125
5,278
6,054
9,617

2,043
3,456
2,416

15,941 10,345
16,575
15,590
15,483 8,941
3,963
3,712
3,755
3,761

1,645
2,407
2,061
1,723

601
600
578
560

766
706
702
694

1,961
1,935
1,902
1,851

754
766
788
750

2,027
2,158
2,595
2,760

954
1,096
1,160
1,253

773
854
1,043
1,069

780
832
983
1,013

380

350
350
350

410
410

6,682
8,338
8,338
8,423

3,339
3,339
2,959
2,959

2,214
1,864
2,114
2,114

7,978
8,090
7,974
8,711

3,620
3,711
3,776
4,061

1,241
1,257
1,257
1,237

1,356
1,381
1,406
1,418

231
1,083
1,062
1,161

1,537
,1,557
1,587
1,611

1,025
869
919

1,170
1,128
1,178
1,127

1,719
1,080
1,699
1,276

1,352
791
786

7,994
5,786
7,318
4,597

1,324
688
1,850
2,276

2,981
3,192
2,774
2,645

1,816
1,238
2,026
2,306

339
622
247

6,165
6,228
6,087
6,464

50
100
456

354

1,400
1,990
2,069
2,069

1,932
3,234
3,840

43
15
59
24

318
3,810
306
277

137
96
76
70

105
35
136
108

1,487
1,019
978
937

443
572
448
374

885
714
595
292

141
110
126
116

522
403
375
466

32,446
34,156
33,412
33,350

218,568
219,078
215,338
206,040

32,692
32,745
32,881
32,101

32,644
34,294
33,741
33,981

25,712
25,669
25,323
25,142

18,180
18,802
18,338
18,411

67,750
67,115
66,790
66,141

18,679
18,608
20,470
20,447

18,158
18,355
18,433
18,290

23,142
22,601
23,504
24,110

33,015
35,256
35,706
35,892
25,118
21,761
22,159
21,731

1,709
1,498
1,690
2,833

i13,128
1 11,161
i 16,825
1
17,515

324

310
321
319

40,275
45,226
44,924
45,204

5,296
5,318
5,3,10
5,468

•1,010

3,035
3,035
3,420
3,532
1,832
2,188
2,213
2,203

1,333
2,818
2,840
2,841

397

194
211
196

4,975
7,587
4,023
3,576

21,929
22,426
22,391
22,667

23,514
23,599
24,348
24,797

523,364
526,245
527,544
519,707

Items in transit, i. e., total amounts due from, less total amounts due to, other Federal Reserve Banks.

253

FEDEKAL BESEKVE BULLETIN.

MAY 1,1916.

Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of business on
Fridays, Mar. SI to Apr.
21,1916—Continued.
LIABILITIES.
[In thousands of dollars.]

Boston.

Capital paid in:
Mar. 31
Apr. 7i.»
..
Apr 14
Apr. 20-21
Government deposits:
Mar.31
Apr 7
Apr. 14 .. . .
Apr. 20-21............
Reserve deposits, net:
Mar.31.......
Apr. 7
Apr.14......
Apr. 20-21...
Federal Reserve notes,
net liability:
Mar.31
Apr. 7..
Apr. 14
Apr. 20-21
Federal Reserve bank
notes in circulation:
Mar.31.
,
Apr. 7....
Apr.14..
Apr. 20-21
Due to other Federal Reserve Banks, net:
Mar.31....
Apr. 7
Apr.14
Apr. 20-21
All other liabilities:
Mar.31 . . .
Apr. 7..
Apr. 14
Apr. 20-21
Total liabilities:
Mar.31
Apr. 7
Apr.14
Apr.20-21




New
York.

Philadelphia.

Cleve- RichAtland. mond. lanta.

San
St.
Chicago. Louis. Minne- Kansas Dallas. Franapolis. City.
cisco.

Total
for
system.

5,146
5,140
4,974
4,950

11,122
11,123
11,291
11,297

5,215
5,215
5,215
5,215

5,948
5,948
5,948
5,948

3,345
3,345
.3,345
3,345

2,414
2,383
2,382
2,405

6,666
6,667
6,669
6,670

2,788
2,788
2,788
2,788

2,561
2,563
2,563
2,563

3,006
3,006
3,006
3,002

2,733
2,734
2,733
2,734

3,944
3,931
3,931
3,926

54,888
54,843
54,845
54,843

363
549
1,398
1,224

10,560
8,327
6,024
6,248

340
1,111
790
876

892
936
1,017
1,094

7,027
6,836
6,244
6,117

7,049
7,468
7,066
6,897

2,173
1,209
987
327

1,504
1,737
1,986
2,395

497
521
457
363

5,613
5,695
5,853
6,108

1,429
1,585
1,784
2,068

38,469
37,016
34,732
35,291

26,937
28,467
27,040
26,177

186,895
188,425
190,598
183,773

27,137
26,419
26,876
26,010

25,804
27,410
26,776
26,939

11,352
11,372
11,594
11,468

8,554
8,843
8,782
9,001

58,911
59,239
59,134
59,144

14,387
14,083
15,696
15,264

15,100
15,271
15,413
15,364

1,022
1,042
1,126
1,574
16,978
16,229
16,810
16,365

9,791
9,656
9,540
9,538

18,141
18,083
18,248
18,306

419,987
423,497
426,507
417,349

1,172
1,073
1,139
1 205

3,792
4,341
4,265
4,238

3,939
4,086
4,107
4 174

8,903
9,500
9,511
9,617
964
1,251
1,423
1,964

964
1,251
1,423
1,964

999

9,991
11,203
7,425
4,722

59
49
49
30
33
38

32,446
34,156
33,412
33,350

218,568
219,078
215,338
206,040

32,692
32,745
32,881
32,101

32,644
34,294
33,741
33,981

385
497

104
108
108
108

25,712 18,180
25,669 18,802
25,323 18,338
25,142 18,411

67,750
67,115
66,790
66,141

18,679
18,608
20,470
20,447

18,158
18,355
18,433
18,290

153
138
526
643

23,142 21,929 23,514
22,601 22,426 23,599
23,504 22,391 24,348
24,110 22,667 24,797

523,364
526,245
527,544
519,707

254

MAY 1, 1916.

FEDERAL RESERVE BULLETIN.

Circulation of Federal Reserve notes at close of business on Fridays, Mar. 31 to Apr. 21, 1916.
[In thousands of dollars.]

Boston.

Federal Reserve notes
issued to the bank:
Mar. 31
Apr.7....
Apr.14
Apr. 20-21.
Federal Reserve notes in
hands of bank:
Mar. 31..
Apr.7
Apr.14
Apr. 20-21
Federal Reserve notes in
circulation:
Mar.31
Apr.7.....
Apr.14
Apr. 20-21
Gold and lawful money
deposited with or to the
credit of the Federal
Reserve Agent:
Mar.31.
Apr.7
Apr.14
Apr. 20-21...........
Carried to net assets:
Mar.31
Apr.7
Apr.14
Apr. 20-21
Carried to net liabilities:
Mar.31...
Apr.7
Apr.14
Apr. 20-21

New
York.

| San
St.
Chicago. Louis. Minne- Kansas Dallas, i Franapolis. City.
| cisco.

Total
for
system.

Phila- Cleve- Richdelphia. land. mond.

Atlanta.

11,726
11,153
11,024
10,913

14,944
14,944
14,.81O
14,755

3,819
3 814
3,807
3,803

7,641
7,628
7,608
7,335

13,065
13,144
13,130
13,130

9,909
9,849
9,899
9,462

14,869
16,009
16,159
16,179

10,842
10,835
10,829
11,618

190,232
190,536
186,761
186,643

931
284
446

1,231
1,083
1,062
1,161

1,537
1,557
1,587
1,611

980
1,025
869
919

1,170
1,128
1,178
1,127

58
157
91
25

17
13
122

5,318
5,310
5,468

27,166
22,219
22,526
22,324

9>851 14,810
9,692 15,992
9,608 16,126
9,437 16,057

5,546
5,517
5,519
6,150

163,066
168,317
164,235
164,319

10,842
10,835
10,829
11,618

179,281
180,578
176,883
176,433

5,296
5,318
5,310

25,118
21,761
22,159
21,731

10,446
10,418
10,873
10,846

75,125
74,959
71,249
71,056

7,178
7,154
6,999
6,973

1,111
719
1,137
1,000

14,325
10,384
10,480
9,888

116
172
138
203

9,335
9,699
9,736
9,846

60,800
64,575
60,769
61,168

7,062
6,982
6,861
6,770

10,316
10,254
10,196
10,219

10,795
10,869
10,761
10,467

13,713
13,861
13,748
13,594

2,282
2,257
2,220
2,192

6,661
" -~
6,739
6,416

11,895
12,016
11,952
12,003

10,446
10,418
10,873
10,846

75,125
74,959
71,249
71,056

7,178 10,668
7,154 10,629
6,999 10,594
6,973 10,573

6,856
6,783
6,654
6,293

13,944
14,944
14,810
14,755

3,819
3,814
3,807

7,641
7,608
7,335

13,065
13,144
13,130
13,130

1,111
719
1,137
1,000

14,325
10,384
10,480
9,888

1,537 i 980
1,557 1,025
1,587
869
1,611 I 919

1,170
1,128
1,178
1,127

116
172
138
203

10,668
10,629
10,594
10,573
352
375
398
354 I

352
375
398
354

231
1,083
1,062
1,161

;,679
!,619
!,469
L232

1,172
1,073
1,139
1,205

3,939
4
4',107
4,174

11,018
11,651
11,861
11,819

3,792
4,341
4,265
4,238

8,903
9,500
9,511
9,617

Statement of Federal Reserve Agents' accounts at close of business on Fridays, Mar. 31 to Apr. .1916.
,
[In thousands of dollars.]

Boston.

Federal Reserve notes:
Received from Comptroller—
Mar.31
Apr.7
Apr.14
Apr. 20-21
Returned to Comptroller—
Mar.31
,.
Apr.7.....
Apr.14
Apr. 20-21...
Chargeable to Federal Reserve Agent—
Mar.31
Apr.7..
Apr.14.
Apr. 20-21
In hands of Federal
Reserve AgentMar. 31:
Apr.7
'.
Apr.14
Apr.2L
Issued to Federal Reserve Bank, net—
Mar.31
Apr.7
Apr.14
Apr.20-21




New
York.

Philadelphia.

Cleve- Richland. mond.

Atlanta.

San
St.
Chicago. Louis. Minne-1 Kansas Dallas. Franapolis. j City.
cisco.

Total
for
system.

17,000 20,400
17,000 20,400
17,000 20,400
17,000 20,400

9,380
9,380
9,380
9,380

9,600
9,600
9,600
9,600

19,000
19>000
19,000
19,000

13,000
13,000
13,000
13,000

20,780
20,780
20,780
22,140

11,360
11,360
11,360
12,160

277,980
278,980
278,980
281,140

2,374
2,447
2,576
2,687

1,360
1,360
1,494
1,549

685
692

197
210
230

135
146
160
160

418
478
478
545

1,121
1,188
l',278
1,320

518
525
531
542

32,633
33,276
37,621
38,451

12,368
12,329
12,294
12,273

14,626
14,553
14,424
14,313

19,040
19,040
18,906
18,851

8,700
8,695
8,688
8,684

9,403
9,390
9,370
9,097

18,885
18,854
18,840
18,840

12,582 19,659
12,522 19,592
12,522 19,502
12,455 20,820

10,842
10,835
10,829
11,618

245,347
245,704
241,359
242,689

1,700
1,700
1,700
1,700

2,900
3.400
3,400
3,400

4,096
4,096
4,096
4,096

4,881
4; 881
4,881
4,881

1,762
1,762
1,762
1,762

5,800
5,710
5,710
5,710

2,673
2,673,
2,823
2,993

7,178 10,668
7,154 10,629
6,999 10,594
6,973 10,573

11,726
11,153
11,024
10,913

14,944
14,944
14,810
14,755

3,819
3,814
3,807
3,803

7,641
7,628
7,608
7,335

13,065
13,144
13,130
13,130

i
I 9,849
! 9,699
! 9,462

19,380
20,380
20,380
20,380.

109,240
109,240
109,240
109,240

15,480
15,480
15,480
15,480

13,360
13,360
13,360
13,360

1,514
1,692
1,737
1,764

21,115
21,281
24,991
25,184

2,209
2,233
2,388
2,414

992
1,031
1,066
1,087

17,866
18,688
18,643
18,616

88,125
87,959
84,249
84,056

13,271
13,247
13,092
13,066

7,420
8,270
7,770
7,770

13,000
13,000
13,000
13,000

6,093

10,446
10,418
10,873
10,846

75,125
74,959
71,249
71,056

6,093

4,790
3,583
3,363
4,841
14,869 10,842
16,009 10,835
16,139 10,829
16,179 11,618

55,115
55,168
54,598
56,046
190,232
190,536
186,761
186,643

MAY 1, 1916.

255

FEDERAL RESERVE BULLETIN.

Statement of Federal Reserve Agents' accounts at close of business on Fridays, Mar. 31 to Apr, 21, 1916-— Continued.
[In thousands of dollars.)
Boston.
Amounts held by Federal
Reserve Agent:
In reduction of liability on outstanding
notesGold coin and eert i f i c a t e s on
hand—
Mar. 31
Apr. 7..
Apr. 14
Apr. 20-21....
Credit balances
in gold redemption f u n d Mar. 31
;
Apr. 7
Apr. 14
Apr. 20-21...
Credit balances ,
with Fed- !
e r a l Reserve
BoardMar. 31
Apr. 7
Apr. 14
Apr. 20-21...
As security for outstanding n o t e s Commercial paperMar. 31
Apr. 7
Apr. 14
Apr. 20-21...
TotalMar. 31
Apr. 7.
Apr. 14
Apr. 20-21...
Memorandum:
Total amount of commercial paper delivered to Federal
Reserve AgentMar. 3 1 . . .
Apr. 7.
Apr. 14
Apr. 20-21




New
York.

San
•St.
Chicago. Louis. Minne- Kansas Dallas. Franapolis. City.
cisco.

Philadelphia.

9,885
9,865
10,365
10,365

71,398
71,398
67,918
67,917

3,360
3,360
3,360
3,360

9,720
9,700
9,700
9,700

581
553
508
481

3,727
3,561
3,331
3,139

458
434
399
373

948
929
894
873

3,360
3,360
3,240
3, 240

10,446
10,418
10,873
10,846

75,125
74,959
71,249
71,056

7/178 10,668
7,154 10', 629
6.999 10', 594
6,973 io; 573

Total
for
system.

2,850
2,850
2,850
2,850

326
353
354
493

6,530
6,430
6,300
5,800

4,870
.4.370
4,370
4,620
11,726
11,153
11,024
10,913

5,008
5,151
5,161

994
994
860
1,305

12,950 i
.
13,950
13,950
13,450

3,410
3,410
3,410
Z, 410.

4,100
4,100
3,950
3,780

9,5^0
9,540
9,540
9,540

351
388
355

665
654
640
640

479
619
619
552

708
751
751
779

272
265
259
248

9,918
9,905
9,380
9,631

4,440
4,390
4,390
4,130

2,350
2,350
2,350
2; 350

4,100
3,900
3,900
3,900

770
1,360
1,570
1,500

10,570'
10,576
10,570
11,370

48,480
49,720
49,680
49,150

1,230
1,230
1,230
1,230

409
404
393

10,050
10,140
10,140
10,140

3,851
4,358
4,278
4,360

9,909
9,849
9.699
9'. 462

14,869
16,009
16,139
16,179

1,245
1,237
1,242
1)239

3,927
4,382
4,352
4,487

1,000

14,944
14,944
14,810
14,755

1,000

3,819
3,814
3,807
3,803

7,641
7,628
7,608
7,335

13,065
13,144
13,130
13,130

120,883
120,953
117,823
117,652

10,951
9,958
9/878
10,210
10,842
10,835
10,829
11,618

190,232
190,536
186,761
186,643

11,180
10,770
10,765
10,725

256

MAT 1,1916.

FEDERAL RESERVE BULLETIN.

GOLD IMPORTS AND EXPORTS.
Imports of gold, by customs districts, Jan. 1 to Apr. 21, 1916.

Total.

St. Lawrence.

Michigan.

Dakota.

Buffalo.

Washington.

Southern California.

San Francisco.

Alaska.

Laredo.

El Paso.

Arizona.

New Orleans.

Florida.

New York.

Maine and New
Hampshire.

[In thousands of dollars.]

Week ending Mar. %!+•

Ore and base bullion
United States mint or assay office
bars
Bullion refined
United States coin
Foreign coin
Total

11

67

27

4

28

8

65

61

3

308

34

89
15

11

270

20

89
337
23
605

20

1,362

40

1
3

605
11

942

38

4

43

8

68

190

3

34

24

1

49
162

3

12

165
1,269
1
2,433

211

3

12

3,868

7

49

227

Week ending Mar. 81.

Ore and base bullion.
Bullion refined
United States coin
Foreign coin
Total

23
183

20

206

25

14
1

20
919

2,433

.

14

1 3,372

24

3

58

47

Week ending Apr. 7.

Ore and base bullion
United States mint or assay office
bars
Bullion, refined
Foreign coin
Total

15

33

8

7

1 711

15

10

12
466
1,328

2

2

350
1,328

7

58

3

57

12
55

2

104

67

7

49

2,033

41

3

58

408

Week ending Apr. 14.

Ore and base bullion
United States mint or assay office
bars
;
Bullion, refined
United States coin
Foreign coin
Total

6

114

99

87

144

1

390
3
530

144
416
9
530

25
6

1 037

6

99

21

40

1

93

3

58

1,507

8

210

30

421

Week ending April 21.

Ore and base bullio n
United States mint or assay office
bars
Bullion, refined
United States coin....
Foreign coin
Total
Jan. 1 to Apr. 21.
Ore and base bullion
United States mint or assay office
bars
Bullion, refined
United States coin
Foreign coin
Total




12

296

868 .......

12

30

725 . . . . . .

111

195

5,350
99
20,206
1

33

26,380

33

125

63

422 . . . . . .

73

27

1

2,425
4,867

267

14

40

5
9

72

94
324
87
170

94

9

315
87
170

1

14

90

73

1 7,714

4

942

343
50

94

8

30

1,096

290

86

571

3,479

1,115
27
11

1,115
8,784
215
25,093

«38

38,686

563

4 1,335 1,968

86

571

257

FEDERAL RESERVE BULLETIN".

MAY 1, 1916.

Exports of gold, by customs districts, Jan. 1 to Apr. 21, 1916.
[In thousand of dollars.]
Maine
and
New New
Hamp- York.
shire.

San
Porto Alas- Hawaii. Fran- Wash- BufRico. ka.
cisco. ington. falo.

Da- Michkota. igan.

MonSt.
tana Law- Ver- Total.
and rence. mont.
Idaho,

Week ending Mar. 24.

United States mint or assay
office bars
Bullion, refined domestic
United States coin
Foreign coin
Total

5
16

93
300

12

2,929

393

12

2,929

1

5

1
5

1

6
27
3,035
300

21

5

6

1 '

3,368

1

Week ending Mar. SI.

Ore and base bullion .
...
United States mint or assay
office bars
Bullion, refined domestic
United States coin
Foreign coin ..
Total .

6

206
300

1
10

393

506

13

7
500

10

11

1,426

3

893

6

501
10
602
300

Week ending Apr. 7.

Bullion refined domestic
United States coin
Foreign coin .. .
Total

8

537
131
375
1,043

546
162
375

8

29

1
2
3

1,083

29

Week ending Apr. 14.

Ore and base bullion
United States mint or assay
office bars
.
Bullion, refined, domestic.
United States coin
Foreign coin .. .
Total.. . .

2

2

31

1

50
32
169
500

1

753

50

88
500

81

588

131

33

50

2
10

Week ending Apr. 21.

Ore and base bullion
„
United States mint or assay
office bars
Bullion, refined, domestic
United States coin...
Foreign coin
Total
Jan. 1 to Apr. 21.
Ore and base bullion
United States mint or assay
office bars
Bullion, refined:
Domestic
Foreign
United States coin.
Foreign coin
Total




2

2
1

175
1,010
2

5

1,186

5

83

2

11

2,702
1,438
7,925
11,961
24,784

63

1

137

68
1

98

1

7,044

7

9

75

9,796

71

236

3

13

7

1

2

1,012
1,381

750

1

2,912

757

12
3

11

3,383

61

701

15

1,290

506

12

75.

15

1

1

2,051

758

2

1

33

52
12
214
1,010

15

3,535
1,438
16,840
13,345
38,678

INTERDISTRIGT MOVEMENT OF FEDERAL RESERVE NOTES, JANUARY 1 TO MARCH 31, 1916.

to
00

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

Philadelphia.

New York.

Returned
to.

Received
from.

Returned
to.

Received
from.

Richmond.

Cleveland.

Returned
to.

Received
from.

Returned
to.

Received
from.

Returned
to.

Received
from.

908,500

$36,000
305,960
58,280

$2,785
79,015
7,670

$49,000
1,556,420
175,715
11,945

$3,340
64,670
16,455
3,945

$22,000
,196,930
59,620
3,825
48,610

$6,905
151,010
10,870
21,280
164,930

. 105,000
141,980
4,940
7,065
74,525
6,740

3,385
22,430
8,865
17,740
461,870
2,960

$712,000

$360,100

$365,950
33,380
2,785
3,340
6,905
12,500
2,900
1,440
1,035
715
2,975

1682,000
43,000
36,000
49,000
22,000
5,000
5,000
15,000
10,000
19,000
7,000

924,500
79,015
64,670
151,010
287,500
65,325
31,655
12,660
19,965
37,730

545,000
299,700
1,537,450
1,187,510
49,450
118,400
185,200
194,700
417,450
257,800

670
7,<
16,-455
10,!
870
22,1
000
285
4,:
1, 140
035
V 970
155

58,280
188,190
59,620
4,970
6,175
11,690
10,910
20,280
6,480

3,945
21,280
101,000
18,205
7,935
3,600
3,805
5,690

11,945
3,825
3,730
2,510
6,060
4,225
5,515
780

164,930
69,000
18,495
4,200
3,265
5,960
4,870

48,610
410
535
675
980
5,095
195

433,925

893,000

2,386,030

5,152,760

659,560

1,308,475

565,700

128,070

2,063,800

144,910

Chicago.

St. Louis.

$43,
549,

Minneapolis.

Atlanta.

Kansas City.

San Francisco.

Dallas.

1,671,235

$5,000
50,210
4,970
3,730
410
3,385

$12,500'
287,500
22,000
101,000
69,000
105,000

$5,000
121,290
6,175
2,510
535
22,430
71,500

$2,900
65,325
4,285
18,205
18,495
141,980
17,840

17,840
14,380
2,145
1,190
2,760

71,500
430,500
298> 500
214,500
64,500

115,000
185,200
11,690
6,060
675
8,865
430, 500
36,195

$1,440
31,655
1,140
7,935
4,200
4,940
14,380
4,290

4,290
24,185
32,270
2,670

36,195
320,145
385,020
8,530

$10,000
203,900
10,910
4,225
980
17,740
298,500
320,145
22,530

$1,055
11,660
1,035
3,570
3,705
7,065
2,145
24,185
15,595

15,595
4,705
16,060

22,530
11,065
21,000

$19,000
411,000
20,280
5,515
5,095
419,480
214,500
385,020
11,065
50,675

$500
17,965
800
3,415
4,650
59,525
1,190
30,280
4,705
60,700

65,700
11,775

50,595
4,150

15,670

2,610

Total....

106,020

1,676,500

292,855

1,018,920

730,545

124,575

966,405




124,760 1,557,300

872,245

Total.

Received Returned Received Returned Received Returned Received Returned Received Returned Received Returned Received
from.
from.
from.
from.
to.
from.
from.
to.
to.
to.
from.
to.
to.
Boston
New York
Philadelphia..
Cleveland.....
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
SarfjFrancisco.

Returned
to.

Returned
to.

$7,000
246,140
6,480
790
195
2,960
64,500
8,530
21,000
3,395
2,930

$2,975
37,730
2,155
5,690
4,870
6,740
2,760
2,670
16,060
11,775
14,670

$923,000
5,192,980
1,312,000
128,070
144,910
829,855
1,676,500
1,018> 920
124,575
124,655
212,735
109,095

$427,880
2,337,030
654,410
559,020
2,056,435
1,646,815
105,260
287,975
730,545
952,205
1,605,060
376,015

363,920

108,095

11,797,295

11,738,650

MAT

1, 1916.

PEDBBAL RESERVE BULLETIN.

25$

CIRCULARS AND REGULATIONS.
The Federal Reserve Board has issued the will be taken to afford these facilities as rapidly as possible.
The Federal Reserve Banks will prepare par list of all
following circular on check clearing and col- nonmember banks, to be revised from timeato time, which
lection:
will be furnished to member banks.
CIRCULAR NO 1, SERIES OF 1916.

WASHINGTON, May 1,1916.
CHECK CLEARING AND COLIvEC.TJQN\

To Member Banks:
The Federal Reserve Board is empowered, under section
16 of the Federal Reserve Act, to require each Federal
3
Reserve Bank to—
" Exercise the function of a clearing house for its member
banks."
After very thorough investigation and many conferences
with the Governors of the Federal Reserve Banks on this
subject, the Federal Reserve Board has determined to
exercise its authority and to offer to the member banks,
and through them to the public, the machinery of the
Federal Reserve Banks for the operation of a check collection and clearing system which it is believed, with the
cooperation of member banks, will afford a direct, expeditious, and economical system of check collecting and
settlement of balances.
The date for the inauguration of this system is expected
to be June 15, 1916, or as soon thereafter as the Federal
Reserve Banks can complete preparations for undertaking
this work.
Member banks in each district will in due course receive
from their Federal Reserve Bank full information as to the
terms and all necessary details of the arrangement, but for
the information of all concerned the general terms may be
stated to be as follows:
(1) In order that no inconvenience may be experienced,
the plan will follow as closely as practicable the practice
which long experience has developed between country
banks and their reserve city correspondents.
Each Federal Reserve Bank will receive at par from its
member banks checks drawn on all member banks, whether
in its own district or other districts. It is also proposed
to accept at par all checks drawn upon nonmember banks
when such checks can be collected by the Federal Reserve
Banks at par. ,
Each Federal Reserve Bank will receive at par from
other Federal Reserve Banks checks drawn upon all member banks of its district and upon all nonmember banks
whose checks can be collected at par by the Federal Reserve Bank.
It is the purpose of the Federal Reserve Board to have
the collection system developed so as to embrace the collection of all checks on nonmember banks and private
banks, and while this can not be done immediately, steps




Immediate credit entry upon receipt subject to final
payment will be made for all such items upon the books
of the Federal Reserve Bank at full, face value, but the
proceeds will not be counted as reserve nor become available to meet checks drawn until actually collected, in
accordance with the best practice now prevailing.
(2) Checks received by a Federal Reserve Bank on its
member banks will be forwarded direct to such member
banks and will not be charged to their accounts until advice of payment has been received or until sufficient time
has elapsed within which to receive advice of payment.
(3) In the selection of collecting agents for handlingchecks on nonmember banks member banks will be given
the preference.
(4) Under this plan Federal Reserve Banks will receive
at par from their member banks checks on all member
banks, and on nonmember banks whose checks can be collected at par by any Federal Reserve Bank. Member
banks will be required by the Federal Reserve Board to
provide funds to cover at par all checks received from, or
for the account of, their Federal Reserve Banks: Provided,
however, That a member bank may ship lawful money or
Federal Reserve notes from its own vaults at the expense
of its Federal Reserve Bank to cover any deficiency
which may arise because of and only in the case of inability
to provide items to offset checks received from or for the
account of its Federal Reserve Bank.
(5) Section 19 of the Federal Reserve Act provides that—
"The reserve carried by a member bank with a Federal
Reserve Bank may, under the regulations, and subject to
such penalties as may be prescribed by the Federal Reserve Board, be checked against and withdrawn by such
member bank for the purpose of meeting existing liabilities: Provided, however, That no bank shall at any time
make new loans or shall pay any dividends unless and
until the total reserve required by law is fully restored."
It is manifest that items in process of collection can not
lawfully be counted as reserve either by a member bank
or by a Federal Reserve Bank. Therefore, should a member bank draw against such items the draft would be
charged against its reserve if such reserve were sufficient
in amount to pay it; but any resulting impairment of
reserves would be subject to all the penalties provided by
the Act.
Inasmuch as it is essential that the law in respect to the
maintenance of required reserves by member banks shall
be strictly complied with, the Federal Reserve Board will
fix a penalty to be imposed upon member banks for encroaching upon their reserves.

260

FEDERAL RESERVE BULLETIN.

Member banks can at all times arrange to keep their
reserves intact by rediscounting with their Federal Reserve Bank.
(6) Each Federal Reserve Bank will determine by
analysis the amounts of uncollected funds appearing on
its books to the credit of each member bank. Such analysis will show the true status of the reserve held by the
Federal Reserve Bank for each member bank and will
enable it to apply the penalty for impairment of reserve.
A schedule of the time required within which to collect
checks will be furnished to each member bank to enable
it to determine the time at which any item sent to its
Federal Reserve Bank will be counted as reserve and become available to meet any checks drawn.
(7) In handling items for member banks, *a Federal
Reserve Bank will act as agent only. It will require that
each member bank authorize it to send checks for collection to banks on which checks are drawn, and, except for
negligence, will assume no liability. Any further requirements that the Board may deem necessary will be set
forth by the Federal Reserve Banks in their letters of
instruction to their member banks.
(8) The cost of collecting and clearing checks must
necessarily be borne by the banks receiving the benefit
and in proportion to the service rendered. An accurate
account will be kept by each reserve bank of the cost of
performing this service and the Federal Reserve Board
will, by rule, fix the charge, at so much per item, which
may be imposed for the service of clearing or collection
rendered by the reserve banks, as provided in section 16
of the Federal Reserve Act,
CHAELES S. HAMLIN,

Governor.
SHERMAN ALLEN,

Assistant Secretary.

Statement for the Press.
In connection with the distribution of the
circular on clearing, the Board gaye out ;
April 29, 1916, the following statement to
the press:
The Federal Reserve Board mailed this
morning to the Federal Reserve Banks for
distribution to all their member banks its
circular announcing a plan for country wide
check clearing and collection. The salient
points of the circular are:
The Federal Reserve Board, acting under the
authority of the Federal Reserve Act, has
designated the Federal Reserve Banks to act




MAY i, 1916.

as clearing houses for the clearing and collection of checks for their members. In doing
this the Federal Reserve Board has laid down
certain general principles, but has left it for
the executive officers of the Federal Reserve
Banks to work out the details. The Board
evidently recognizes the immense amount
of detail work that must be done in order to
put such a vast machinery into smooth operation, and has set the time for beginning the
operation of the system as June 15. The
important features of the plan are:
(1) The Federal Reserve Banks will accept
at par all checks from member banks, w;hether
drawn against other member banks, nonmember banks, or private banks. An exception is made at the outset in the case of checks
drawn against nonmember banks which can
not be collected at par.
(2) All checks thus received from member
banks will be given immediate credit entry,
although amounts thus credited will- not be
counted as reserves nor become available
until collected.
(3) In order to enable member banks to
know how soon checks sent in for collection
will be available either as reserves or for payment of checks drawn against them, time
schedules, giving the minimum time for collection, will be furnished by each Federal Reserve
Bank to its member banks.
(4) The actual cost, without profit, of the
clearing and collection of checks will be paid
by the Federal Reserve Banks and assessed
against the member banks in proportion to
their sendings.
(5) The whole plan is based on generally
accepted principles under which clearing and
collection plans have long been operated. A
Federal Reserve Bank will not debit a member
bank's reserve account with items forwarded
to it for collection until the remittance of the
member bank, in payment of such items, shall
have had time to reach the Federal Reserve
Bank.

INDEX.
Acceptances, distribution of, by sizes, maturities,
etc
249-251
Acceptances not subject to stamp tax
211
Attorney General, opinion of, re changing location
of Federal Keserve Banks
207-211
Bank examinations, cost of
213,214
Business conditions throughout Federal Reserve
districts
228-243
Check clearing and collection, circular on
259
Commercial failures in 1916.
216
Commissioner of Internal Revenue, rujing as to
revenue stamps on acceptances
' 211
Discount rates in effect- .•-....-.
216
Discounts, distribution of
244-248
Earnings and expenses of Federal Reserve Banks. 217-219
Federal Reserve Agents' accounts, statement of—
255
Federal Reserve Agents, meeting of
206
Federal Reserve Bunk statements
252-254
Federal Reserve note issues
212
Federal Reserve notes, intradistrict movement of..
258
Fiduciary powers granted to member banks
225
Gold imports and exports
256, 257
Gold settlement fund..
220-222
Governors of Federal Reserve Banks, meeting of...
206
Individual and bank deposits of national banks.... 222
Chart showing
223
Informal rulings of the Board:
Clayton Act, interpretation of....
224




Informal rulings of the Board—Continued.
Foreign bank branches in United States........ 224
Bonds securing circulating notes
224
Rediscounts of member banks
224
Intradistrict clearing system, additions to and withdrawals from.
225
Law department:
Negotiability of bills of exchange
226
Maturity of farm-land loans
226
Bills of exchange under section 5200, Revised
Statutes.....
227
Rediscount of the assignment of open accounts. 227
Location of Federal Reserve Banks, opinion of
Attorney General re changing.
207-211
Meeting of governors of Federal Reserve Banks... 206
Member banks granted authority to accept up to 100
per cent
215
National banks, individual and bank deposits of. 222,223
Resources and liabilities of Federal Reserve
Banks.
251-252
State bank admissions to system
206
Three per cent bonds, sale of
215
Trustee, executor, etc., applications to act as, approved
225
"United States bonds to secure circulation, withdrawal of
215
Work of the Board.
205

o


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102